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KPMG's AI Report Becomes an Accidental Demo of AI Hallucinations
GPTZero said only 5 of 45 citations were accurate, warning that fabricated references could spread misinformation through reports, blogs and AI systems.
On Friday, KPMG International removed its October 2025 report, "Total Experience: Redefining Excellence in the Age of Agentic AI," from websites after GPTZero identified widespread AI hallucinations and false citations throughout the document.
GPTZero investigators found that only five of the 45 citations in the report accurately pointed to real sources, while others were "garbled" or fabricated; the research group dubbed this phenomenon "vibe citing."
The report made false claims about UBS, Swiss Federal Railways, and Transport for London; a UBS spokesperson told the Financial Times the assertions were "factually incorrect," while affected transit groups confirmed claims were "misleading."
A KPMG spokesperson said the firm "takes the accuracy and integrity of its published content seriously" while investigating the report's publication; this follows similar retractions by EY and Deloitte over AI-generated errors.
GPTZero chief executive Edward Tian warned that error-riddled publications by major firms "poison the well of information," concluding that "vibe citations are a clear and present danger" to researchers and students globally.
KPMG has retracted a report that turned out to be full of AI hallucinations. It is particularly painful for the consultancy firm that the report provides examples of institutions successfully using AI: examples that have been conjured up out of thin air by artificial intelligence.