KPMG pulls report on AI usage due to apparent hallucinations

KPMG removed its October 2025 report, “Redefining excellence in the age of agentic AI,” after organizations including UBS, the NHS, Swiss Federal Railways, and Transport for London disputed claims about their AI use. GPTZero said the inaccuracies appeared to stem from AI hallucinations, and KPMG says it is investigating while emphasizing human oversight requirements.

The incident underscores the reputational risk for consultancies using generative AI to produce thought leadership without rigorous verification. Alongside EY’s recent withdrawal of a report with apparent fake citations, it points to growing scrutiny of AI-assisted research and the need for stronger editorial controls.