KPMG has retracted a report on AI usage after it was found to contain inaccuracies attributed to AI hallucinations.

Context

The report, titled "Redefining excellence in the age of agentic AI," was published in October 2025 and claimed to detail the benefits of AI in various sectors. However, several organizations disputed the claims made in the report, leading to its withdrawal.S1S2

Key points

• KPMG's report was criticized for containing false information about AI usage in organizations.S1

• The inaccuracies were identified by the research group GPTZero, which pointed to AI hallucinations as the source.S1

• The report included exaggerated case studies, particularly regarding UBS and transit systems.S2

• KPMG's reliance on AI to generate the report has raised concerns about the accuracy of AI-generated content.S1

• The retraction highlights the potential risks of using AI in professional reporting.S1

• Organizations affected by the report expressed dissatisfaction with the misrepresentation of their AI initiatives.S2

• The incident underscores the need for careful validation of AI-generated information before publication.S1

• KPMG's decision to pull the report reflects a growing awareness of the limitations of AI technologies.S1

Why it matters

• The withdrawal of the report raises questions about the reliability of AI in producing factual content.S1

• It highlights the importance of transparency and accuracy in AI-related research and reporting.S2

• The incident may influence how organizations approach AI adoption and reporting in the future.S1

What to watch

• Monitor KPMG's future reports and their approach to AI-generated content.S1

• Watch for responses from organizations mentioned in the retracted report regarding their AI strategies.S2

• Keep an eye on developments in AI accuracy and the implications for professional services firms.S1