KPMG pulls report on AI usage due to apparent hallucinations

KPMG’s AI report got yanked after readers said the facts looked made up

TLDR: KPMG removed an AI-themed report after several big organizations said it wrongly described how they use artificial intelligence. Commenters roasted the firm for getting caught by what looks like AI-made falsehoods, with many saying this wasn’t just embarrassing, it was easily preventable.

KPMG tried to publish a glossy big-think report about how companies are using artificial intelligence, and the internet immediately turned it into a public clown-car moment. The firm pulled the report after major organizations including UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London reportedly said the claims about their AI use were wrong, misleading, or just plain not true. The extra sting? The mistakes were flagged by GPTZero, a group that said the bad details looked like classic AI-made fiction. Yes, a report about AI appears to have been sunk by AI mistakes. The comments practically wrote themselves.

The strongest reaction was pure mockery. One commenter cheered, “Go, GPTZero!”, while another delivered the kind of dry internet sarcasm that lands like a slap: KPMG had apparently found a bold new definition of “excellence.” Ouch. Another hot take predicted this is only the beginning, joking that Gartner may need to pull “a loooot of reports” too, turning one embarrassing mistake into a wider panic about the whole report-writing industry. The subtext was brutal: people aren’t just laughing at KPMG, they’re wondering how many polished corporate reports are secretly running on autopilot.

There was also a practical scolding beneath the memes. One commenter argued this face-plant was wildly avoidable, saying even a basic step like having another tool check references and numbers could have prevented “99% of the face palms.” That’s the real drama here: not just that KPMG slipped, but that the crowd thinks it slipped in the most obvious, preventable way possible. After EY pulled a different report last month over fake footnotes, the community mood is less "oops" and more "here we go again."

Key Points

  • KPMG withdrew its October 2025 report 'Redefining excellence in the age of agentic AI' after organizations disputed claims about their AI usage.
  • GPTZero identified inaccuracies in the report and told the Financial Times they were caused by AI hallucinations.
  • UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London said the report's claims about them were untrue or misleading.
  • KPMG said it removed the report from its websites while conducting an investigation.
  • The article also notes that EY withdrew a separate report last month that appeared to contain fake footnotes and AI hallucinations.

Hottest takes

"Go, GPTZero!" — jruohonen
"a new and increasingly relevant definition of 'excellence'" — gdulli
"pull a loooot of reports" — Scoundreller
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