KPMG Pulls AI Report After 89% of Citations Fail Verification

KPMG withdrew a report on AI adoption after the Financial Times and UBS confirmed that only 5 of 45 citations matched their sources. The document, written partly by generative AI, contained fabricated case studies and hallucinated references. The incident exposes a critical failure: AI-generated research reaching publication without citation-level human verification—a process design failure, not a minor oversight.