Professional services giant KPMG has retracted a report titled “Redefining Excellence in the Age of Agentic AI” following objections from multiple organizations regarding inaccuracies in the document. The report, initially released in October 2025, came under scrutiny for purportedly inaccurate claims about AI usage by several organizations.
AI Hallucinations Identified
The research group GPTZero was pivotal in identifying numerous inaccuracies within the report. According to an interview with the Financial Times, GPTZero attributed these errors to AI hallucinations, implying that AI was used in drafting the report on AI itself.
The organizations affected included UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London. Representatives from these entities informed the Financial Times that the report’s statements about their AI usage were either inaccurate or misleading.
KPMG's Response
In response to the growing concerns, a KPMG spokesperson announced that the report has been pulled from the firm's websites. The spokesperson emphasized that KPMG is conducting an internal investigation. “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 spokesperson added.
Industry-Wide Implications
The issue with KPMG’s report is not isolated. Just last month, EY withdrew a report on loyalty rewards programs after it was found to contain fake footnotes and similar AI hallucinations. These incidents highlight a broader challenge in the professional services industry concerning the responsible use of AI in research and report generation.
The retraction of KPMG’s report underscores the necessity for rigorous human oversight in AI-assisted content creation. The professional services sector is increasingly relying on AI tools, but as these incidents demonstrate, the technology must be applied judiciously to avoid the propagation of false information.
Conclusion
The episode serves as a cautionary tale for firms embracing AI technology. Ensuring accurate and reliable information is paramount, and human oversight remains a critical component in the AI-driven landscape. As the industry continues to integrate AI into its processes, maintaining a balance between technological innovation and factual accuracy will be crucial.
Source: https://techcrunch.com/2026/06/13/kpmg-pulls-report-on-ai-usage-due-to-apparent-hallucinations/
