KPMG retracts AI usage report after discovering AI-generated hallucinations

According to TechCrunch, KPMG pulled its October 2025 report titled "Redefining excellence in the age of agentic AI" after GPTZero identified significant inaccuracies stemming from AI hallucinations. UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London all told the Financial Times the report's claims about their AI usage were untrue or misleading. A KPMG spokesperson said the firm is investigating while reinforcing requirements for human oversight to validate content.