KPMG files AI use report due to apparent hallucinations

Professional services firm KPMG published a report titled “Redefining Excellence in the Age of Agent AI” after numerous organizations claimed the report’s claims about their use of AI were untrue.

Research group GPTZero identified several inaccuracies in the report published in October 2025. GPTZero told the FT that these inaccuracies resulted from AI hallucinations. That said, professional services firms appear to have leveraged AI to help write reports about it.

UBS, Britain’s National Health Service, Swiss Federal Railways and Transport for London all told the FT that the report’s claims about the use of AI were untrue or misleading. A KPMG spokeswoman said the company had removed the report from its website while it conducted its own investigation.

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

Last month, EY retracted a report on a loyalty rewards program that appeared to contain fake footnotes and AI hallucinations.