KPMG retracts report on use of artificial intelligence due to apparent hallucinations

Professional services firm KPMG has withdrawn a report titled “Redefining Excellence in the Age of Agent AI,” after several organizations said the report’s claims about its AI use were untrue.

Research group GPTZero identified a number of errors in the report, which was published in October 2025. She told the Financial Times that these errors stem from hallucinations of artificial intelligence. In other words, it appears that the professional services firm used AI to help write a report about AI.

UBS, the UK’s National Health Service, Swiss Federal Railways and Transport for London all told the Financial Times that the report’s claims about their use of AI were either incorrect or misleading. A KPMG spokesperson said the company removed the report from its websites while it conducted its own investigations.

“We expect all our employees to follow our guidelines on the responsible use of AI, including human moderation to verify the authenticity of content and verify independent sources,” the spokesperson said.

last month, EY has withdrawn a report on loyalty rewards programmes Which appears to include fake footnotes and AI hallucinations.