KPMG's October 2025 report on the wonders of agentic AI has been accused of demonstrating one of the tech's less desirable talents: making things up. Research outfit GPTZero claims a forensic review of the Big Four firm's October 2025 report, "Total Experience: Redefining Excellence in the Age of Agentic AI," found that only five of its 45 citations correctly pointed to the cited source; the rest ranged from mangled and misleading to partially fabricated or too vague to verify. The consulting industry has form here. Last year, Deloitte ended up refunding the Australian government after AI-generated content slipped into a taxpayer-funded report. GPTZero dubbed the phenomenon "vibe citing" – the citation equivalent of vibe coding – where generative AI appears to stitch together fragments of real sources, invent titles, or otherwise produce references that look convincing until someone actually clicks them. GPTZero alleges that roughly half of the report's factual claims were false, unsupported, or attributed to the wrong source. Several case studies highlighting supposedly cutting-edge deployments of agentic AI appear to have been particularly creative. Among the examples highlighted by GPTZero were purported agentic AI deployments at UBS, Swiss Federal Railways, and Transport for London. According to GPTZero, the sources cited to support those case studies either did not substantiate the report's claims or contained alterations and paraphrasing that undermined their reliability. “These factual errors are not confined to the report’s footnoted passages,” GPTZero said. “On page 42, the authors claim that Emirates airline has adopted a mobile chatbot named Sara (false) that can converse directly with passengers (partially true) and change their flights (false). In fact, Sara is a robot assistant introduced by Emirates in 2023 (not a chatbot) that lacks the ability to alter flight bookings.” Not all of the alleged problems involved external sources. GPTZero noted that the report appears to contradict KPMG's own research, citing a figure of 55 percent of CEOs ranking AI as their top investment priority. KPMG's 2025 CEO Outlook, released the same month, put the number at 71 percent. KPMG has since removed the report from some of its websites while it investigates how the publication made it into the wild, according to the Financial Times. A spokesperson at KPMG told The Register: "KPMG International takes the accuracy and integrity of its published content seriously. The report has been removed and we are reviewing the circumstances surrounding its publication. We expect all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources." Consulting firms have spent years warning clients about AI hallucinations. According to GPTZero, KPMG may have just provided a live demonstration. ®

London's Metropolitan Police Service (MPS) is planning to cut around 700 extra frontline posts after being blocked from awarding a software contract to US supplier Palantir, Commissioner Mark Rowley said. On May 20, the capital's deputy mayor for policing and crime Kaya Comer-Schwartz refused to approve the MPS's plan to hand its Unified Operational Analytics (UOA) contract, worth up to £50 million over two years, to Palantir. The force already uses Palantir in professional standards investigations into its own officers. In the written version of his report to the London Policing Board on June 11, Rowley said the MPS has to reduce its full-time equivalent (FTE) headcount by 1,150 in the current financial year to balance its budget. The UOA would have covered around 500 of these by reducing staff time spent on backroom work including intelligence reports, mobile device analysis, and data processing. "Following the decision not to award the contract with the preferred supplier Palantir, the delivery of these circa 500 FTE reductions are now at risk," Rowley wrote, adding that the UOA also looked likely to allow the force to cut a further 200 FTE serious and organized crime (SOC) posts. "We are now in a scenario where, in the absence of additional new funding, we must identify and implement in-year cuts to our services to Londoners, rather than using technology to automate administrative and research-heavy areas of the MPS," the Commissioner wrote. The MPS "may be able to take the edges off these reductions" if it can quickly find an alternative route to UOA functionality, Rowley said. But as any procurement would likely take months, the force must plan greater cuts in frontline policing. A spokesperson for the Mayor of London said: "The mayor fully supports the Met using modern technology to drive efficiencies and improve the performance of the police. However, as with all procurement, we must always ensure the correct processes are followed and that Londoners get value for money. "In this case, the Met did not present its procurement strategy for approval, as required, and the process followed by the Met did not adequately demonstrate value for money for Londoners for a proposed contract at this value. Given the tight budgetary constraints the police are operating under, it's even more important that robust processes are followed when awarding large contracts. "The Met does face a difficult financial situation, which stems from the huge cuts implemented by the previous government and the significant underfunding of the Met's capital city responsibilities. The mayor has already doubled the policing budget from City Hall and he will continue to do everything he can to support the Met and secure the national funding needed for policing in our city." The dispute comes as the Home Office announced an expansion of AI use across policing in England and Wales, with large-scale pilots in up to ten forces this financial year aimed at helping officers process digital evidence. The work will be run centrally by a new body, PoliceAI. ®

Enterprises that have watched Claude claw its way toward mass appeal over the past few months of capacity challenges and pricing realignment should take a closer look at Anthropic's offerings, according to International Data Corporation (IDC). The tech consultancy has been tracking Anthropic's moves over the past six months and says that the AI biz is taking credible steps toward making itself an enterprise AI provider. "Currently, no frontier model company is mature enough to be evaluated as an enterprise AI provider on its own," IDC said in a recent report. "But Anthropic is running at full speed to get there before its competitors." The report is titled "The Transformation of Anthropic (and What to Do About It)," and advises enterprises to revisit their LLM and agent evaluations with an eye toward seeing whether Anthropic might work out as a reliable technology provider. Enterprises, IDC says, remain largely unsold on Anthropic's Claude models, with only 19 percent using them extensively and 25 percent actively evaluating them. OpenAI and Google are better represented in enterprises, with about 42 percent and 38 percent of organizations using their respective products, per IDC's FERS Survey, March 2026. According to The Information, about 86 percent of Anthropic’s 2025 revenue was projected to come from enterprise sales. OpenAI, the report claims, derives just 40 percent of its revenue from business sales, though that figure ($5.2 billion) represented a higher dollar amount than Anthropic's business revenue ($3.9 billion) at the time. That was back in January, only two months after Anthropic began shifting enterprises away from seat-based pricing toward usage-based pricing. Since then, IDC says Anthropic has taken a series of steps to make itself more credible as an enterprise AI provider. "This conclusion might not be obvious: From January through May 2026, Anthropic produced well over 100 public interactions, including official announcements, release notes, blog posts, X posts, partner announcements, hiring news, policy moves, and press-covered transactions," the report says. These initiatives, such as the launch of the Claude Partner Network, have expanded distribution, bolstered brand perception, facilitated future growth, enhanced "stickiness" (aka lock-in), strengthened enterprise support, addressed the needs of specific industries, demonstrated innovation, and shored up the compute supply necessary to deliver services at scale. According to IDC, the enterprise ecosystem commonly focuses on a vendor-neutral, multi-LLM strategy. Nonetheless, the biz argues that the company has made its technology visible enough that Claude is increasingly coming up in conversations among IT decision makers. "Anthropic's transformation has just started, but the direction is clear enough for CIOs and CISOs to pay attention and reassess where Claude fits in a multi-LLM or an agentic AI Strategy," the IDC report says. ®

Palantir CEO Alex Karp doesn’t think frontier AI labs prepping for IPOs really understand what their customers need, and that ignorance is making Palantir a success. Karp had a wide-ranging, often rambling and self-interrupting sit-down (coherent compared to some of his other interviews, to be fair) with CNBC’s Sara Eisen on Wednesday in which he said that every single enterprise customer Palantir has is unhappy with frontier AI labs like Anthropic and OpenAI. Those companies, says Karp, are operating on a “hyper religion of hyper optimism” that doesn’t reflect the experiences of their customers. “They believe all problems present, past, and future, including the ones they create but don’t acknowledge, are going to be solved by them,” Karp opined. “Enterprises are fed up because they know this doesn’t actually work this way, and isn’t working.” That frustration, Karp said, is driving businesses to Palantir’s Foundry systems, which act as AI-agnostic data integration platforms for unifying disparate data sources and cognizing them with whatever LLMs a customer chooses to deploy. Pitch to prospects or not, Karp is on to something. AI projects are largely loss makers for the companies that deploy them, and have been for some time. Only 28 percent of AI use cases fully meet ROI expectations, according to a recent Gartner estimate, and most fail to ever get out of the pilot stage. Despite that, business leaders keep shoveling coal into the AI furnace to try to extract value, which, if you ask Karp, simply isn’t there unless you’re pairing those models with some decent infrastructure. Infrastructure Palantir can provide, natch. “It’s not just the man and woman on the street who are unhappy with the frontier labs,” Karp said, pointing to “every single enterprise we deal with” being frustrated with the likes of Anthropic and OpenAI’s ability to provide value for their businesses. Karp said that Palantir leadership has been debating whether they should pay potential customers to go talk to frontier labs themselves before signing a contract with his outfit. “People come out of there screaming, saying 'this could never work for me, they don’t understand the enterprise, they don’t care about my enterprise,'” he said of customers. Frontier labs, Karp opined, just want customers to "tokenmax” – that is, to view token consumption as a measure of productivity and usefulness. The charge isn’t out of left field. Google CEO Sundar Pichai even nodded to the phenomenon at I/O last month. Burning more and more tokens is getting to be expensive for companies, and OpenAI is reportedly considering reducing its per-token charge to attract more customers in its growing war with Anthropic, which Karp called the “leading frontier firm” in his interview. Karp wouldn’t give a straight answer when asked whether OpenAI, Anthropic, and other frontier labs could do what Palantir is doing, but he did imply some doubt. Sure, they have some good engineers on staff, he said, but that doesn’t matter a lick if they “don’t talk to the enterprises or understand the technical challenges” their customers are facing in deploying their models. “When you go to San Francisco and talk to them, their basic vibe is ‘we don’t have to solve your problem today because tomorrow you’re going to go away and all your problems are going to be solved,’” Karp charged. “It’s largely religious.” Karp also called out OpenAI’s recent agreement to acquire UK-based AI consulting firm Tomoro, which will form part of the newly launched OpenAI Deployment Company aimed at helping customers generate returns from their ChatGPT investments, as an attempt to replicate Palantir's success. “It’s a complete farce,” Karp said. “They don’t understand how unlikeable they are.” By that, Karp said, it’s not that AI lab leadership isn't friendly – he said he's buddies with some of them and that they’re great to chat with – but “the product doesn’t actually work and it’s very expensive.” To that end, he added, most of the things that Anthropic brags about in public, for example, are successful because they’re “running on Palantir,” Karp charged. “It is not that LLMs aren’t crucial for the world, it’s just that the implementation is where the value is, certainly in the next 7 years,” Karp explained. In essence, what the Palantir boss seems to believe is that simply tossing an LLM at business problems isn't an actual solution. What Karp had to say on CNBC was, in his usual way, boisterous, confrontational, and self-aggrandizing, but look at the rate of AI returns in the enterprise right now and you have to admit he's got at least a partial point. ®