IA · 15 June 2026 · 3 min read
KPMG Pulls AI Adoption Report Due to Apparent AI Hallucinations
In brief: KPMG has pulled its prominent report on enterprise AI adoption after several cited organizations flagged major inaccuracies. Research group GPTZero confirmed that the false claims were the result of AI hallucinations, indicating that the professional services firm used generative AI to write a report about AI without sufficient human oversight.
by Team Mocchi's
An AI Report Written by AI (With Hallucinations)
In a technological paradox that highlights the risks of automated corporate content, professional services giant KPMG has pulled a major report titled "Redefining excellence in the age of agentic AI". The decision came after multiple high-profile organizations cited in the report stated that the claims regarding their AI usage were entirely untrue or highly misleading.
According to TechCrunch, AI-detection and research group GPTZero analyzed the document, which was originally published in October 2025, and confirmed that the inaccuracies stemmed from AI hallucinations. In other words, the advisory firm appears to have used generative AI to help write a report about AI, skipping critical verification phases.
High-Profile Denials from Major Organizations
The controversy erupted when several global institutions contacted by the Financial Times denied the report's claims. Among them, Swiss bank UBS, the UK's National Health Service (NHS), Swiss Federal Railways, and Transport for London all stated that the report's assertions regarding their implementation of AI tools were incorrect or fabricated.
A KPMG spokesperson stated that the firm has removed the report from its websites while 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 said.
The Crucial Need for Human Oversight
The KPMG incident is a stark reminder of the necessity of the "human-in-the-loop" approach when integrating generative AI into business workflows. The drive for efficiency often leads professionals to delegate research and report writing to large language models, overlooking their tendency to generate plausible-sounding but entirely false facts.
In the professional services industry, trust is built on rigorous research and factual accuracy. When a "Big Four" consulting firm publishes data hallucinated by an algorithm, it does not just damage its own reputation; it threatens to undermine trust across the entire business-to-business AI landscape.
A Worrisome Trend in Professional Services
This misstep is not an isolated event. Just last month, competitor EY (Ernst & Young) withdrew a report on loyalty rewards programs that was found to contain fake footnotes and AI-generated hallucinations.
For enterprises looking to adopt AI solutions, the takeaway is clear: while AI tools can vastly accelerate drafting and analysis, they cannot replace critical human oversight, rigorous fact-checking, and final editorial responsibility.