Incident 1563: KPMG Report Allegedly Included Hallucinated Citations and Inaccurate Agentic AI Case Studies

Description: In October 2025, KPMG published "Total Experience: Redefining Excellence in the Age of Agentic AI." GPTZero later reported that only five of 45 citations accurately matched their sources, while others contained flawed details. The pattern reportedly suggested an unverified LLM research tool, but the system and extent of AI involvement remain unconfirmed.

Editor Notes: Timeline notes: The incident ID is dated 10/28/2025, based on the most specific available publication date for KPMG's report. GPTZero published its investigation on 06/12/2026. The incident ID was created on 06/30/2026.

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Entities

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Alleged: Large language model developers , Generative AI developers and AI research tool developers developed an AI system deployed by KPMG and Big Four consulting firms, which harmed UBS , Transport for London , Transit systems , Swiss Federal Railways , Researchers , Policy analysts , NHS Greater Manchester , Healthcare organizations , Financial institutions and Epistemic integrity.

Alleged implicated AI systems: Large language models , Generative AI systems , AI research tools and AI citation-generation tools

Incident Stats

Incident ID

1563

Report Count

Incident Date

2025-10-28

Editors

Daniel Atherton

Incident Reports

Reports Timeline

Chasing the Hallucinations: KPMG's AI-Powered Attempt at "Redefining Excellence"

gptzero.me

KPMG Allegedly Published AI Report Filled With Hallucinations

pcmag.com

KPMG drops AI report after false case studies exposed

internationalaccountingbulletin.com

gptzero.me · 2026

AIID editor's note: Please see the original source for the full report and all of its findings.

Over the past year, a team of GPTZero investigators has used our Hallucination Check tool to uncover hallucinated citations in government report…

pcmag.com · 2026

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 la…

internationalaccountingbulletin.com · 2026

PMG has removed a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations.

The Financial Times (FT) reported that the October report, Redefining excellence in the age of ag…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.

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