KPMG Retracts AI Report After Verification Finds 89% of Citations Fabricated

KPMG withdrew a research report after the Financial Times and UBS discovered only 5 of 45 citations were accurate. The document, partly written by generative AI, contained false case studies and hallucinated references. The failure points to a systems problem: AI-generated research was published without human verification of individual citations, a fundamental process lapse rather than an isolated error.