KPMG pulls AI report after it was found to contain fabricated, AI-generated content - Storyboard18

In October 2025, global consulting firm KPMG retracted its flagship report, "Total Experience: Redefining Excellence in the Age of Agentic AI," after an independent review uncovered significant inaccuracies and fabricated content. The incident serves as a stark reminder of the risks associated with relying on generative AI for professional research and corporate insights.

What happened

The report, intended to showcase organizational adoption of advanced AI systems, was found to contain widespread "hallucinations"—a phenomenon where generative AI produces confident but false information. An investigation by AI detection firm GPTZero revealed that of the 45 citations included in the publication, only five were accurate. The remaining 40 citations were either entirely fabricated, misattributed, or too vague to verify.

Beyond citation errors, the report included misleading case studies involving prominent organizations. Entities such as UBS, the UK’s National Health Service (NHS), Swiss Federal Railways, and Transport for London publicly disputed the descriptions of their AI usage, labeling the claims as incorrect. These findings indicate that significant portions of the report were either generated or heavily influenced by AI tools without adequate human oversight.

Following these revelations, KPMG removed the report from its platforms and initiated an internal review regarding its production processes. The firm reaffirmed its commitment to accuracy, noting that internal policies require independent verification and human oversight for AI-generated content. This incident reflects a growing trend in the consulting sector where firms face reputational damage due to the unchecked use of generative AI, highlighting an urgent need for more robust fact-checking systems in high-impact professional publications.