KPMG Withdraws AI Report Due to Fabricated Content

Professional services firm KPMG has pulled a report on AI after organizations including UBS and Transport for London said claims about their AI usage were false. The inaccuracies were attributed to AI hallucinations, suggesting KPMG may have used AI to generate parts of the report.
KPMG Withdraws AI Report Due to Fabricated Content

KPMG Withdraws AI Report Due to Fabricated Content KPMG’s attempt to showcase how businesses are embracing artificial intelligence has backfired, after the firm withdrew a flagship report amid revelations that key case studies were apparently fabricated by AI tools.

Early publication and bold claims

In October 2025, KPMG published a report titled “Redefining excellence in the age of agentic AI”, promoting examples of how major institutions were supposedly using advanced AI systems. The report described benefits and adoption levels that painted a highly optimistic picture of AI’s impact across sectors such as finance, healthcare, and transport.

Outside scrutiny exposes inconsistencies

The report drew closer scrutiny when research group GPTZero examined its contents and identified “a number of inaccuracies,” which it told the Financial Times stemmed from AI hallucinations. In effect, KPMG appeared to have used AI to help write a report about AI, and the system had invented details that were then presented as real-world case studies.

Organizations dispute KPMG’s claims

Several organizations named in the report challenged how they were portrayed. UBS, the UK’s National Health Service, Swiss Federal Railways and Transport for London all told the Financial Times that the claims about their AI usage were “either untrue or misleading,” undermining the document’s core narrative about widespread, sophisticated AI deployment. Separately, the FT reported that some of the case studies “exaggerated adoption of the technology,” further calling into question the report’s reliability.

KPMG response and wider industry context

KPMG responded by pulling the report from its websites and launching an internal investigation. A spokesperson stressed that the firm “expect[s] all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources.”

The episode follows a similar incident “last month,” when rival firm EY withdrew a separate report that appeared to contain fake footnotes and AI hallucinations, highlighting broader concerns about over-reliance on generative AI in professional research and marketing materials.

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