KPMG has been left red-faced after being forced to pull a major global report packed with claims that some of the world’s biggest organisations say were completely made up.
The professional services giant published a glossy report titled *Redefining Excellence in the Age of Agentic AI*, boasting about how leading companies were supposedly using cutting-edge artificial intelligence to transform their operations. There was just one problem — many of the success stories never happened.
According to the *Financial Times*, the report contained a string of fabricated case studies and false claims that appear to have been generated by AI "hallucinations" — when artificial intelligence confidently invents facts that aren't true.
The blunders were first flagged by tech research firm GPTZero and later verified by the *Financial Times*. Once alerted, several high-profile organisations demanded KPMG take the report down immediately.
Big Names Say: "That's Not Us"
Among those challenging the report were Swiss banking giant UBS, the UK's National Health Service (NHS), Swiss Federal Railways and Transport for London (TfL).
UBS: ‘Factually Incorrect’
KPMG claimed UBS had rolled out sophisticated AI agents across its investment advisory and risk management systems through a custom Microsoft-built platform.
UBS wasn't having it.
A spokesperson reportedly slammed the claims as "factually incorrect" and demanded they be removed.
Swiss Railways: ‘Not Accurate’
The report also claimed Switzerland's national rail operator was using AI agents to help passengers plan and book journeys based on real-time travel conditions and carbon emissions.
Rail officials swiftly shot down the story, saying the claims were simply "not accurate".
London Transport: ‘Misleading’
Transport for London was allegedly using AI agents to predict congestion and coordinate the capital's transport network, according to KPMG.
TfL described the claims as "misleading".
NHS: ‘Doesn't Really Align’
Perhaps most eyebrow-raising were claims that NHS Greater Manchester was using AI agents to organise patient records, automate referrals and predict hospital readmissions.
Health officials responded bluntly, saying the description "doesn't really align" with reality.
‘Poisoning the Well’
The scandal comes just weeks after rival consulting giant EY was forced to withdraw a study containing fake footnotes and AI-generated errors, also uncovered by GPTZero.
GPTZero chief executive Edward Tian warned that mistakes from trusted firms can spread misinformation far and wide.
"They poison the well of information," Tian said, noting that KPMG's bogus findings had already been cited by technology publications and even a major European newspaper before the report disappeared.
KPMG International has now removed the report and launched an internal investigation.
A spokesperson said the company takes the "accuracy and integrity" of its publications seriously and admitted employees may have breached internal AI-use policies.
"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," the spokesperson said.
For a firm built on trust and expertise, the embarrassing episode raises uncomfortable questions about whether the rush to embrace AI is outpacing basic fact-checking.
