KPMG withdraws AI report after case studies about UBS, NHS, and transit operators are found to contain false claims apparently generated by AI.

What happened: KPMG removed an October report titled Redefining excellence in the age of agentic AI after multiple organizations confirmed that descriptions of their AI use were inaccurate. The report falsely claimed that UBS integrates AI agents across investment advisory and compliance, Swiss Federal Railways uses AI to help users plan journeys, Transport for London deploys AI to manage congestion, and NHS Greater Manchester uses AI to predict readmissions and triage patients. Research group GPTZero flagged several passages as hallucinations, which the Financial Times verified.

Why it matters: A Big Four consulting firm published statements that companies explicitly denied, undermining the credibility of professional research on AI adoption. GPTZero CEO Edward Tian said error-filled reports from the Big Four "poison the well of information." KPMG is now reviewing how the report was produced, signaling accountability gaps in how major advisory firms vet AI-generated content before publication.

What to watch: KPMG has taken the report down from its websites pending a review of its production process. This follows a similar incident last month when EY withdrew a report on cyber risks in loyalty schemes after researchers alleged it included fabricated data and bogus references apparently generated by AI.