KPMG Pulls Report on AI Usage Due to Apparent Hallucinations

TechCrunch reports that KPMG has withdrawn a published report titled 'State of AI in Enterprise 2026' after internal review revealed apparent hallucinations. The report, which was partially generated using AI tools, included invented statistics, fake citations, and plausible-sounding but false case studies. KPMG stated that the incident was due to insufficient human oversight of AI-generated content. The firm has apologized and committed to strengthening its AI usage policies. The event is a significant embarrassment for a major consulting firm and underscores the risk of using generative AI for professional analysis without rigorous fact-checking. Regulators are likely to scrutinize such practices more closely.