KPMG has withdrawn its AI report after organizations challenged its accuracy regarding their use of AI technology.
KPMG has retracted its report titled "Rethinking Excellence in the Age of Agent AI" after receiving backlash over misleading statements regarding the use of AI technology by various organizations. The report, published in October 2025, claimed that several notable companies were utilizing AI agents to streamline complex business processes in sectors like investment consulting, risk management, logistics, and healthcare.
Organizations Challenge Report's Accuracy
UBS was a key focus, with the report alleging that the bank had employed AI assistants in its investment consulting and compliance sectors through a partnership with Microsoft. A spokesperson from UBS refuted this claim as "factually incorrect," prompting KPMG to begin the removal process of the document from its website.
Swiss Federal Railways also objected to the report's assertion that it was using AI agents for trip planning based on passenger preferences and environmental considerations, labeling the description as inaccurate. Additionally, Transport for London criticized KPMG's portrayal of its use of AI for managing transport congestion as misleading.
Research Group Highlights Inaccuracies
The inaccuracies were brought to light by GPTZero, a research organization focused on evaluating AI-generated content. They noted that many of the disputed claims appeared to exemplify typical "hallucinations" of AI, where the technology produces convincingly false information. A notable example involved the Greater Manchester NHS, which KPMG claimed was using agent AI for patient routing and predicting readmissions. However, the cited source only mentioned the technology's role in early lung cancer detection.
Implications for the Consulting Industry
KPMG expressed its commitment to the accuracy of its published materials and is currently investigating the errors. The company stated that it requires human reviews and independent source verification for its publications. This incident highlights ongoing challenges in the consulting sector regarding the application of generative AI. Similar issues previously led EY to retract a report due to fictitious references, and law firm Sullivan & Cromwell has also reported inaccuracies linked to AI usage.
Concerns Over Misinformation in Research
Edward Tian, CEO of GPTZero, warned that inaccuracies in reports from major consulting firms could lead to a "secondary hallucination" effect, where false information proliferates through media and analytical reviews. It has been noted that various industry publications and international media have referenced conclusions from KPMG's controversial report, raising concerns over trust in analytical materials from firms that advise clients on AI implementation and risk management. In light of these events, Anthropic CEO Dario Amodei has called for stricter regulations on artificial intelligence.
