KPMG USED AI TO WRITE A REPORT ABOUT AI, GOT CAUGHT HALLUCINATING, PULLED THE WHOLE THING This story practically writes itself, and that may be exactly the problem. Professional services giant KPMG pulled its own report titled “Redefining excellence in the age of agentic AI” after multiple major organizations said the descriptions of their AI programs were simply not true. Research group GPTZero flagged the inaccuracies and traced them to AI hallucinations. In plain terms, KPMG appears to have used AI to write a report about how companies should deploy AI, and the AI invented facts about those very companies. UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London all told the Financial Times that the report’s claims about their AI usage were false or misleading. KPMG pulled the document from its websites and says it is conducting an internal investigation. A company spokesperson stated the firm expects all employees to follow guidelines on responsible AI use, including human oversight to validate content and verify independent sources. Evidently those guidelines were not applied here. The episode is not isolated. Last month, EY withdrew its own report on loyalty rewards programs after investigators found it contained fake footnotes and AI-generated hallucinations. Two of the world’s biggest consulting firms, paid enormous sums annually to advise global businesses on responsible AI deployment, have now been publicly caught using AI irresponsibly to write their own research. The consulting industry has been racing to sell AI expertise. These incidents reveal that some firms have been buying into the hype while skipping the verification step entirely. It is a pattern that should alarm every company paying for that advice.