KPMG has withdrawn a study on agentic AI that reportedly included AI-generated hallucinations and fake citations, in the latest example of a professional services firm being caught by the shortcomings of the technology.
The report titled ‘Total Experience: Redefining Excellence in the Age of Agentic AI’ was published in October 2025. However, research group GPTZero recently identified a number of inaccuracies in the report, many of which stemmed from AI-generated hallucinations. This means that the company seems to have used AI tools to draft the report about agentic AI.
KPMG pulled the report after several organisations mentioned in the document said that its claims about their AI usage were untrue. UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London said that the KPMG report’s claims about their AI usage were either untrue or misleading, according to Financial Times.
The incident underscores how consulting firms have become particularly vulnerable to AI-generated errors, even as they caution clients about safeguarding against AI hallucinations and other reliability issues. It also comes just one month after EY withdrew a report on loyalty rewards programs that appeared to include fake footnotes and AI hallucinations.
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