KPMG withdraws AI usage report over apparent hallucinations
Professional services firm KPMG retracted a report on AI usage after multiple organizations disputed its claims about their AI adoption, with research group GPTZero attributing the inaccuracies to AI hallucinations.
KPMG, a global professional services firm, has withdrawn its report titled “Redefining excellence in the age of agentic AI” after numerous organizations said the report’s claims about their AI usage were untrue. The report, published in October 2025, was found to contain several inaccuracies by the research group GPTZero, which specializes in detecting AI-generated content.
According to GPTZero, the inaccuracies stemmed from AI hallucinations, suggesting that KPMG may have used artificial intelligence to help write the report about AI. The organization shared its findings with the Financial Times, noting that the errors were not minor but significant enough to misrepresent companies' AI activities.
Several prominent institutions publicly refuted the report’s statements. UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London all told the FT that the report’s claims about their AI usage were either untrue or misleading. These denials prompted KPMG to pull the report from its websites.
A KPMG spokesperson confirmed the withdrawal, stating: “We expect all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources.” The firm is conducting its own investigation into the matter.
This incident follows a similar case last month when EY withdrew a report on loyalty rewards programs that reportedly contained fabricated footnotes and AI hallucinations. The recurring issues highlight the risks of relying on AI without adequate human verification.
