KPMG withdraws AI usage report after detecting apparent hallucinations

KPMG announced the removal of a report that detailed its use of artificial intelligence. The decision was made after the firm identified apparent hallucinations in the AI outputs. The announcement came on May 19, 2026. A photo from Suqian City, Jiangsu Province, shows a netizen checking the KPMG logo on a mobile phone. The same image also captures the user viewing the KPMG webpage on a computer. Both devices display the same branding on the day of the report withdrawal. The incident highlights ongoing challenges in ensuring AI reliability for large enterprises. Observers will watch how KPMG addresses AI governance moving forward.