---
source_url: "https://www.pcmag.com/news/kpmg-allegedly-published-ai-report-filled-with-hallucinations"
title: "KPMG Allegedly Published AI Report Filled With Hallucinations | PCMag"
mirrored_at: 2026-08-18T15:02:30.437Z
host: www.pcmag.com
cited_in_42a: true
mirror_canonical: "https://index.42a.ai/www.pcmag.com/news/kpmg-allegedly-published-ai-report-filled-with-hallucinations"
---

> **Original source:** https://www.pcmag.com/news/kpmg-allegedly-published-ai-report-filled-with-hallucinations

Are you interested in learning from human experts about how AI could impact the future of work and the customer experience? If so, it turns out that you could have unknowingly been getting some of your responses from AI.

KPMG, one of the largest consulting firms in the world, is accused of publishing a report on the future of AI with 40 of 45 citations that appeared to be at least partially AI hallucinations. In one instance, uncovered by the AI safety firm [GPTZero](https://gptzero.me/news/investigations-kpmg/ "(Opens in a new tab)"), the report claims that the Japanese East Japan Railway Company (JR East) is using agentic AI for customer service, linking to a 2019 press release, years before agentic AI became mainstream.

In another instance, the report falsely claimed that Austrian electricity provider Verbund is using AI agents in households to conduct real-time analytics as part of its “energy-as-a-service ecosystem.” Although Verbund invested in a start-up using agents for grid optimization, there was no evidence to support the claim of real-time analytics in households.

Many citations linked to existing studies, but the titles, authors, or dates were incorrect. Researchers were unable to match many citations to existing studies due to insufficient information.

The report, which has now been taken down, has been referenced by multiple customer service publications and [a major newspaper](https://byznys.hn.cz/c1-67823690-pruzkum-kpmg-v-hodnoceni-firem-opet-vyhrala-air-bank-druhy-je-rohlik-cz "(Opens in a new tab)") in the Czech Republic. In addition, researchers noted that the paper is now being referenced as a resource on customer experience by OpenAI’s ChatGPT and Google Gemini. GPTZero alleges that an LLM research tool was asked to find appropriate case studies of companies using agentic AI worldwide.

“This tool seems to have conflated sources, exaggerated claims, and injected references to agentic AI that were copied into the final report without verification,” according to GPTZero, which suspects "no human at KPMG double-checked the citations, the claims, or the sources” before the report was published.

“The report has been removed, and we are reviewing the circumstances surrounding its publication,” a KPMG spokesperson [told](https://www.ft.com/content/b3828e92-4961-4b39-84f0-c42f33be3c3f?syn-25a6b1a6=1 "(Opens in a new tab)") _The Financial Times_. “We expect all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources.” 

### Recommended by Our Editors

This comes after the Australian government last year ordered Deloitte to [refund a portion](https://www.pcmag.com/news/deloitte-refunds-portion-of-440k-report-over-ai-hallucinations) of the $290,000 (AU$440,000) it was paid for a compliance report after the government discovered several incorrect citations that appeared to be AI hallucinations, and a fabricated quote.

The problem is already being felt by the average worker. More than 40% of US desk workers reported receiving "workslop"—low-quality AI-generated content—in the past month, according to a [September survey](https://www.pcmag.com/news/ai-workslop-is-plaguing-american-companies-says-stanford-research) from the Stanford Social Media Lab and BetterUp Labs.

## About Our Expert

![Will McCurdy](https://i.pcmag.com/imagery/authors/04RavpQbWHTQPDMte8CODw9.fit_lim.size_100x100.v1727976184.webp)

Will McCurdy

Contributor

* * *

Experience

I’m a reporter covering weekend news. Before joining PCMag in 2024, I picked up bylines in BBC News, The Guardian, The Times of London, The Daily Beast, Vice, Slate, Fast Company, The Evening Standard, The i, TechRadar, and Decrypt Media.

I’ve been a PC gamer since you had to install games from multiple CD-ROMs by hand. As a reporter, I’m passionate about the intersection of tech and human lives. I’ve covered everything from crypto scandals to the art world, as well as conspiracy theories, UK politics, and Russia and foreign affairs.

Latest By Will McCurdy

[Read Full Bio](https://www.pcmag.com/authors/will-mccurdy)