KPMG has pulled a report about artificial intelligence after multiple organizations said the document contained false information about their AI usage. The professional services firm removed “Redefining excellence in the age of agentic AI” from its websites following complaints from companies including UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London.
The controversy highlights a growing problem in the consulting world: firms using AI tools to create content about AI without proper oversight, leading to embarrassing public mistakes. Research group GPTZero identified the inaccuracies and told the Financial Times they stemmed from AI hallucinations – essentially, the AI system made up information that wasn’t true.
The report, published in October 2025, made specific claims about how these major organizations were using AI technology. But when contacted by the Financial Times, all four organizations said KPMG’s statements about their AI implementations were either completely false or seriously misleading. This forced KPMG into the uncomfortable position of having to publicly retract a high-profile industry report.
A KPMG spokesperson acknowledged the firm is now conducting its own investigation into what went wrong. “We expect all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources,” the spokesperson said. The statement suggests KPMG does have internal policies for AI use but failed to follow them properly in this case.
This incident fits into a troubling pattern affecting major consulting firms. Last month, competitor EY had to withdraw its own report on loyalty rewards programs after it was found to contain fake footnotes and AI hallucinations. The back-to-back mistakes by two of the world’s biggest professional services firms raise serious questions about quality control in an industry that clients pay millions for expertise and accuracy.
The problems go beyond simple embarrassment. When consulting giants publish false information about real companies’ technology strategies, it can:
- Mislead other businesses making strategic decisions based on industry reports
- Damage the reputation of companies falsely represented in the research
- Undermine trust in consulting firm research more broadly
- Create liability issues if decisions are made based on incorrect information
The timing is particularly awkward for KPMG, which has been positioning itself as a leader in AI consulting services. Having to retract a report about AI excellence because of AI-generated errors undermines the firm’s credibility in this fast-growing market. Companies pay consulting firms premium rates partly because they expect human expertise and verification that goes beyond what automated tools can provide.
This controversy also exposes the risks many organizations face as they rush to integrate AI tools into their workflows. While AI can help with research and writing, the KPMG case shows what happens when there isn’t enough human oversight to catch fabricated information. For consulting firms especially, where accuracy and credibility are fundamental to the business model, these mistakes can be particularly costly.
