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AII-1000-91471
Well documentedThree or more independent publishers report the core facts.

KPMG AI report contained false citations and fabricated case studies

A KPMG report titled "Redefining excellence in the age of agentic AI" published in October 2025 contained numerous false citations and fabricated case studies that appeared to be AI-generated hallucinations. The report made false claims about AI adoption at organizations including UBS, the UK National Health Service, Swiss Federal Railways, and Transport for London, with only five of 45 citations accurately reflecting real sources.

October 2025 Β· KPMG Β· Reliability and hallucination
October 2025
AII-1000-914717 sources ↓
Quick facts
Category
Reliability and hallucination
Country
United Kingdom
Source
Crypto Briefing
Date
October 2025
Drafted by
Raidu Incident Detection

What happened

KPMG published a report titled 'Redefining excellence in the age of agentic AI' in October 2025 that contained numerous false citations and fabricated case studies. Of the 45 citations in the report, only five accurately reflected real sources, with others being totally fake or including garbled attributions and titles.

The report made false claims about AI adoption by organizations including UBS, the UK National Health Service, Swiss Federal Railways, and Transport for London. These false claims and case studies appear to have been based on AI-generated hallucinations.

Reported impact

The false report was disseminated globally, raising concerns about the consequences of reports plagued with AI hallucinations. Researchers at GPTZero noted the incident as part of a broader trend where major government reports, academic papers and other research are becoming plagued with AI hallucinations.

Classification

Category
Reliability and hallucination
Industry
Media, social platforms and marketing
Country
United Kingdom
Harm status
Actual harm
Intent
Unintentional
Timing
Unknown
Harm types
Reputational, Public interest
Harmed
Business, General public
Failure modes
Hallucination, Fabricated citation
Consequences
None recorded
AI systems
AI system used to generate KPMG report

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

Crypto Briefing
KPMG report on AI adoption criticized for bogus case studies
12 June 2026
Australian Financial Review
KPMG report contained AI hallucinations on benefits of ... AI
12 June 2026
CityAM
KPMG report on AI found riddled with AI hallucinations
12 June 2026
TechRadar
A major KPMG report on AI was found to be chock-full of...AI hallucinations
12 June 2026
TheRegister.com
KPMG's AI report becomes an accidental demo of AI hallucinations
12 June 2026
Firstpost
AI hallucination: KPMG study exaggerates adoption of the technology by making bogus claims
13 June 2026
The Irish Times
KPMG the latest firm to be caught out using AI
13 June 2026