BusinessCantillon

KPMG the latest firm to be caught out using AI

Top consultancy apparently used artificial intelligence to source parts of a report extolling virtues of AI

KPMG has pulled a report that appeared to include numerous AI hallucinations. Photograph: Getty Images
KPMG has pulled a report that appeared to include numerous AI hallucinations. Photograph: Getty Images

Every day it seems there is an artificial intelligence-related news story. And it can feel like nearly every day we see a report about professionals getting egg over their faces for using AI when they really shouldn’t be.

Just this week, a judge in Mississippi in the US had to pause a case after it emerged that lawyers on both sides had been caught out using AI to prepare filings. But, perhaps more notably, on Friday KPMG International pulled a report extolling the virtues of AI after it was found to contain incorrect information generated from, you’ve guessed it, AI hallucinations.

The report, titled Redefining Excellence in the Age of AI, included false case studies on how organisations such as Swiss bank UBS and the UK national health service were using the technology in day-to-day business. According to the Financial Times, research group GPTZero identified the flaws and KPMG withdrew the report from some websites after it was notified of the issues.

This is not the first time that a big company has been caught out publishing what appears to be legitimate data that is based on nothing more than rubbish spouted by an algorithm – and it won’t be the last.

READ MORE

But it points to how pernicious the effect of using AI unchecked can be. The big consultancies, like KPMG, routinely publish reports on different sectors of business and life in general. Other organisations often use those reports as justification for the stance they happen to be taking on whatever the issue is.

Martin Wolf: Why the world must agree to regulate AIOpens in new window ]

It points to another problem that the wider, unchecked use of AI is creating. On the face of it, the technology allows people to do many tasks much more quickly. Need a 30-page report on how companies are using AI? No problem. That can be compiled in a couple of minutes. Therefore more of these reports can be produced, and companies can earn more money.

But that all assumes the information is correct. In more and more cases, it is clear nobody is actually checking the facts. But then that takes time, and costs money.