KPMG Scandal: consulting used AI and got false data
6/15/2026, 06:53 AM • Евгения Слив

Consulting firm KPMG was forced to withdraw its October report "Reimagining Excellence in the Age of Agent AI" after a number of large organizations disproved the cases it contained. The paper asserted that companies such as UBS, Swiss Federal Railways, Transport for London and Greater Manchester National Health Service are successfully implementing AI agents to automate business processes. However, representatives of these organizations stated that such technologies were not used by them and the scenarios described did not correspond to reality.
The GPTZero research group, having found inaccuracies, classified them as classical hallucinations of language models. For example, claims about the use of AI to predict repeat hospitalizations in the NHS were based on a source that focused only on early detection of lung cancer. KPMG launched an internal investigation, stressing that the company’s policy requires a mandatory human verification of facts.
The incident highlights systemic risks of using generative AI in professional services, with EY experiencing similar issues earlier this month. CEO of GPTZero Edward Tian warned about the effect of "secondary hallucinations" when fabricated AI information is circulated by media and other analysts, undermining trust in the consulting sector amid calls for tighter regulation of AI.
