A major KPMG report on AI was found to be chock-full of...AI hallucinations
2026-06-12
TechRadar
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KPMG's October 2025 report on agentic AI was found to contain mostly fabricated or misattributed citations and case studies, generated by AI. GPTZero's investigation revealed only 5 of 45 citations were accurate, leading to misinformation and reputational harm for KPMG and affected organizations.[AI generated]
Why's our monitor labelling this an incident or hazard?
The event involves the use and malfunction of AI systems (generative AI producing hallucinated citations) that have directly led to harm in the form of misinformation dissemination, which can be considered harm to communities and the integrity of information. The false citations and misleading case studies in a major report with global influence constitute a violation of trust and potentially intellectual property rights, as well as causing harm to the community by spreading misinformation. Therefore, this qualifies as an AI Incident due to realized harm caused by AI hallucinations in an influential context.[AI generated]