KPMG Report Contained AI Hallucinations on Benefits of AI
Australian Financial Review
ENRICHED
Details
- Date Published
- 13 June 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 12 June 2026, 08:00 pm
Description
KPMG has pulled the report from websites after discovering it contained bogus case studies from major organisations that exaggerated adoption of the technology.
Summary
Professional services firm KPMG was forced to retract a global report after discovering it included fabricated case studies and exaggerated AI adoption rates likely generated by AI hallucinations. The incident highlights critical failures in human oversight and institutional reliability when utilizing agentic AI for research and reporting. Such lapses in corporate due diligence underscore the systemic risks posed by automated misinformation and the potential for AI-driven deceptions to skew global perceptions of technological readiness. This development is pertinent to AI governance discussions regarding the accountability of firms deploying frontier AI tools for public-facing analysis.
Body
WorldEuropeBig four consultantsPrint articleElizabeth Bratton and Stephen FoleyJun 13, 2026 – 5.00amLondon | New York | A KPMG report on how artificial intelligence is being used by businesses across the world exaggerated adoption of the technology with bogus case studies that appear to have been based on AI hallucinations.The October report, Redefining excellence in the age of agentic AI, made numerous false claims about the use of AI by organisations including the Swiss bank UBS, the UK’s National Health Service and the public transit groups Swiss Federal Railways and Transport for London.Loading...Financial TimesSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginFollow the topics, people and companies that matter to you.Find out moreRead MoreBig four consultantsKPMGAIUBSSwitzerlandUKMicrosoftAccountingFetching latest articles