A recent KPMG report on agentic AI contained approximately 40 AI hallucinations among its 45 citations, leading to its immediate withdrawal. Major entities like UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London publicly refuted claims about their AI usage, stating they were untrue or misleading. This widespread repudiation prompted KPMG to pull the study.

KPMG, positioned as an expert on AI, published a report on agentic AI that was so riddled with inaccuracies and AI hallucinations it had to be withdrawn. This incident reveals a critical vulnerability in how even leading consulting firms manage AI-generated content.

Rigorous human oversight and verification are critically needed in an age where even professional services firms are struggling to manage AI-generated content, potentially eroding trust in expert analysis.

What We Know About KPMG's Withdrawn AI Report

  • KPMG withdrew its report titled “Redefining excellence in the age of agentic AI” due to untrue claims about AI usage, according to TechCrunch.
  • The study on agentic AI was officially titled ‘Total Experience: Redefining Excellence in the Age of Agentic AI’, according to The Indian Express.
  • UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London stated the report's claims about their AI usage were untrue or misleading, according to TechCrunch and The Indian Express.
  • The KPMG report falsely claimed Japanese East Japan Railway Company (JR East) uses agentic AI for customer service, according to PCMag.
  • This specific claim linked to an unrelated 2019 press release, according to PCMag.
  • KPMG’s withdrawal followed external researchers identifying significant inaccuracies.

Are AI Hallucinations Impacting Business Reports in 2026?

KPMG’s report contained approximately 40 AI hallucinations among its 45 citations, a significant failure in factual accuracy. GPTZero researchers found that only 5 out of 45 citations in the KPMG report correctly pointed to the cited source. Only 5 out of 45 citations in the KPMG report correctly pointed to the cited source, suggesting a systemic breakdown in verification.