A major KPMG report on AI was found to be full of AI hallucinations.

Only five of the 45 citations accurately reflected the actual sources.
Some were completely false, others included “truncated” attributions and titles
GPTZero says flavor quotes have consequences, with reports spreading around the world

GPTZero investigators have revealed how major government reports, academic papers and other research are rife with AI-related hallucinations, so much so that the company is on its second report exploring this trend.

In the latest embarrassing incident, a KPMG report on agentic AI was actually found to be full of AI-generated errors, false quotes, and misleading case studies.

“Of the 45 citations in the report, only five accurately point to real sources,” the team wrote, adding that many others were either completely false or significantly distorted.

AI report filled with AI hallucinations

GPTZero used the term “vibe citing” to refer to fake quotes, where the generative AI appeared to have created fake references that seemed plausible. The report also included strange mixes of real references, such as false attributions or paraphrased headlines.

“A human would not systematically paraphrase titles, confuse topics with authors, or repeat information across multiple components,” they added.

Although the researchers make arguments for and against citing vibrations, they ultimately conclude that it should still be considered a hallucination and that “vibrations have consequences.”

In this case, they argue that KPMG has such influence that its findings are likely to be cited globally, in news stories, blog posts and other conversations, furthering the spread of potential misinformation. They are also concerned about the report being cited in LLMs, thus spreading the information even further.

It follows a similar 2025 report revealing that a study by the U.S. President’s Commission on Making America Healthy (MAHA) also included “truncated or fabricated” footnotes.

“GPTZero asserts that flavor quotes pose a clear and present danger to researchers, academics, consultants, students, and anyone else searching for information on the Internet,” the company concludes.

Google logo on black background next to text