Why did KPMG retract its AI report?

The report contained false claims about AI adoption by several major organizations, including UBS and the UK’s National Health Service. Errors stemmed from neural network hallucinations during content generation.

Which companies were incorrectly cited in KPMG’s report?

The report inaccurately referenced UBS, the UK’s NHS, Swiss Federal Railways, and Transport for London. All these organizations denied the claims made in the document.

What are neural network hallucinations?

These occur when AI generates unverified or fabricated information that does not align with real-world facts. In this case, the neural network produced false data about AI adoption.

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Artificial intelligence

KPMG Retracts AI Report Due to AI Hallucinations

June 13, 2026

Photo: TechCrunch

Quick answer

KPMG retracted its AI adoption report after neural network hallucinations produced inaccurate data about AI implementations by major corporations and government agencies.

Global consulting firm KPMG has removed its AI adoption report from public access after independent researchers discovered inaccuracies within the document. Titled Redefining excellence in the age of agentic AI, the report was published in October 2025 but was found to contain misleading claims about AI implementations by major organizations within weeks.

GPTZero, a research group specializing in AI-generated content analysis, identified that the errors in KPMG’s report were likely caused by neural network hallucinations. This suggests that generative AI models were used without adequate fact-checking. Representatives from UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London confirmed that the AI-related project information in the report was either incorrect or misleading.

KPMG confirmed the report’s removal and announced an internal investigation. The company’s press service emphasized that all employees must adhere to responsible AI usage policies, including mandatory data verification and reliance on independent sources. A similar incident occurred a month earlier when EY retracted a loyalty program report due to AI-generated fake references and errors.

Common questions

Why did KPMG retract its AI report?: The report contained false claims about AI adoption by several major organizations, including UBS and the UK’s National Health Service. Errors stemmed from neural network hallucinations during content generation.
Which companies were incorrectly cited in KPMG’s report?: The report inaccurately referenced UBS, the UK’s NHS, Swiss Federal Railways, and Transport for London. All these organizations denied the claims made in the document.
What are neural network hallucinations?: These occur when AI generates unverified or fabricated information that does not align with real-world facts. In this case, the neural network produced false data about AI adoption.

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