Key facts
- KPMG has withdrawn its October 2025 report, "Redefining excellence in the age of agentic AI," due to inaccuracies.
- The inaccuracies were identified as AI hallucinations by the research group GPTZero.
- UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London disputed claims made in the report.
- GPTZero found that 40 out of 45 citations in the report were fake or misattributed.
- KPMG is conducting an internal investigation into the matter.
- This follows a similar incident where EY withdrew a report due to AI hallucinations.
KPMG has withdrawn its October 2025 report, "Redefining excellence in the age of agentic AI," after multiple organizations stated that the claims made about their artificial intelligence usage were untrue or misleading. The research group GPTZero identified the inaccuracies, attributing them to AI hallucinations, a phenomenon where AI generates false information.
Organizations such as UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London have publicly stated that the assertions made about their AI adoption in the KPMG report were factually incorrect or misleading. GPTZero's investigation revealed that out of 45 citations in the report, 40 were found to be fake or misattributed, with only five accurately pointing to real sources.
A spokesperson for KPMG confirmed the firm removed the report from its websites and is conducting an internal investigation, emphasizing the company's guidelines on responsible AI use, including human oversight. This incident follows a similar case last month where EY withdrew a report due to apparent AI hallucinations and fake footnotes.