Why KPMG had to pull a report on AI usage
What's the story
KPMG has pulled its report on "agentic AI," after major corporations and organizations named in it raised concerns over claims of their AI usage. The report, "Redefining excellence in the age of agentic AI," was marred by several inaccuracies and fabricated case studies, according to The Financial Times. These false stories were likely generated by artificial intelligence (AI) "hallucinations," where an AI model confidently includes incorrect facts in responses.
Discovery
The false data was 1st flagged by GPTZero
The inaccuracies in KPMG's report were first uncovered by tech research group GPTZero, and later confirmed by the Financial Times. After being alerted to the false data, several high-profile organizations including UBS, the UK's National Health Service (NHS) and major public transport agencies forced KPMG to remove the publication from its websites.
Misrepresentation
UBS Bank denied the report's assertions
KPMG's report claimed that global organizations were successfully deploying advanced "AI agents" for complex, automated tasks. However, the companies involved quickly clarified these claims were false. UBS Bank denied the report's assertion that it integrated AI agents across its investment advisory and risk management systems using a custom platform built with Microsoft. A spokesperson for UBS called the claims "factually incorrect" and demanded their removal.
False claims
NHS and transport agencies were also misrepresented in the report
KPMG's report also falsely claimed that Swiss Federal Railways and Transport for London (TfL) were using AI agents for seamless journey planning and congestion prediction, respectively. A spokesperson from the railway confirmed the claims were "not accurate," while TfL called its claim "misleading." The UK's NHS was also misrepresented in KPMG's report, which said it used AI agents to organize patient data and automate referrals.
Pattern
KPMG's debacle follows a similar retraction by EY
The KPMG debacle follows a similar incident involving rival firm EY, which had to retract a report after GPTZero flagged fake footnotes and other AI-generated errors in its text. Edward Tian, Chief Executive of GPTZero, criticized these "Big Four" accounting and consulting firms for not fact-checking their own work. He said such mistakes "poison the well of information," referring to how before KPMG pulled its report, its false findings were cited by multiple tech industry publications and a European newspaper.
Internal probe
KPMG launches internal investigation
In light of the controversy, KPMG International has launched a full internal investigation into the matter. A spokesperson for the firm said they take "the accuracy and integrity of its published content seriously." The spokesperson also admitted that their employees may have violated internal guidelines regarding artificial intelligence usage. "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," they added.