KPMG retracted its AI report after UBS, the NHS, and others stated that its assertions regarding them were fabricated.

KPMG retracted its AI report after UBS, the NHS, and others stated that its assertions regarding them were fabricated.

      KPMG has retracted a report titled “Redefining excellence in the age of agentic AI” following claims from several organizations that its assertions regarding their AI usage were inaccurate or misleading. UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London all informed the Financial Times that the report misrepresented their AI implementations.

      The AI detection company GPTZero identified the discrepancies and informed the FT that they were due to AI hallucinations. This means that a professional services firm utilized AI to assist in drafting a report about AI, resulting in fabricated information regarding the companies it was meant to analyze.

      The report was released in October 2025 and has since been removed from KPMG’s websites. A spokesperson mentioned that the firm is carrying out its own investigation. “We expect all our people to adhere to our guidelines on the responsible utilization of AI, which includes human oversight to validate content and verify independent sources,” the spokesperson noted.

      KPMG is not the first firm to face such scrutiny; last month, EY retracted a report on loyalty rewards programs that seemed to contain fictitious footnotes and AI-generated inaccuracies. Additionally, South Africa rescinded its entire national AI policy after discovering that at least six out of its 67 academic citations were fabricated by AI.

      This trend suggests that organizations are relying on AI to generate seemingly credible content, bypassing the verification process, and subsequently publishing unfounded claims. The KPMG incident is particularly noteworthy as the report was specifically focused on AI adoption, which should have prompted the authors to exercise greater caution regarding errors generated by AI.

      For KPMG’s clients, this situation poses a challenging question. If the firm's publicly available thought leadership involves the use of AI without sufficient human oversight, what level of scrutiny is applied to the work conducted under contract? Earlier this year, KPMG formed a partnership with Anthropic to incorporate Claude across its 276,000 staff, intending to integrate AI into advisory, audit, and tax functions. The retracted report illustrates the potential consequences when such integration outpaces thorough verification.

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KPMG retracted its AI report after UBS, the NHS, and others stated that its assertions regarding them were fabricated.

KPMG retracted a report on agentic AI after several organizations disputed the accuracy of its statements regarding their AI use. GPTZero attributed the inaccuracies to AI hallucinations.