A Year Marked by Structural Breakdowns
The consulting sector experienced several high impact incidents throughout 2025.
These cases revealed vulnerabilities in governance, quality control, ethical oversight and
model validation across global firms.
They also highlighted the growing complexity of engagements and the pressure to
deliver at speed in an environment reshaped by regulation, technology and public
scrutiny.
For an industry where credibility and professional judgement are foundational, the
events of 2025 underline the need for resilient processes, transparent decision
pathways and controlled use of emerging tools.
A Year Marked by Structural Breakdowns
Major Incidents Observed in 2025
1. Deloitte: AI-Generated Errors in a Government Report
A government report submitted in Australia contained inaccurate references,
unverifiable material and sections generated by AI without sufficient human review.
External investigators identified inconsistencies and content that could not be validated.
The firm reimbursed the government and faced a public debate on responsible AI use
in professional services.
Observed issues
● Use of generative systems without structured oversight.
● Absence of validated sources and factual assurance.
● Insufficient quality control.
Consequences
● Reimbursement of the project fee.
● Reputational impact in public sector engagements.
● Increased regulatory attention to AI enabled consulting work.
2. PwC: Confidential Information and Conflicts of Interest
PwC faced government and media scrutiny in Australia after confidential fiscal
information was misused internally.
The case intensified concerns regarding the separation of audit and consulting roles
and the management of privileged data.
Observed issues
● Misuse of sensitive government information.
● Conflicts arising from simultaneous advisory and assurance positions.
● Breakdown of internal confidentiality controls.
Consequences
● Significant reputational damage.
● Regulatory reviews affecting the broader sector.
● Internal restructuring to reinforce governance boundaries.
3. KPMG: Disputed Valuation Report in a Corporate Transaction
KPMG faced allegations in Spain after a valuation prepared for the sale of Oil
Distribution Terminal was reported to omit relevant information and apply calculations
that reduced EBITDA through the exclusion of expenses.
The valuation structure raised questions regarding independence and rigour.
Observed issues
● Valuation assumptions not fully aligned with available financial data.
● Omission of temporary deregistration information from fiscal records.
● Generic expense categories without detailed breakdowns.
Consequences
● Reputational risk .
● Potential legal claims from affected parties.
● Public scrutiny of valuation methodologies.
Sector wide Implications
The incidents across 2025 point to systemic pressures:
● Engagements are increasingly complex and highly exposed.
● Generative AI accelerates production but amplifies verification challenges.
● Regulatory expectations on integrity, data handling and model validation are
rising.
● Reputational risk scales rapidly.
For consulting firms globally, maintaining credibility requires governance structures that
can prevent, detect and correct failures before they manifest in client impact.
The TAMVER Perspective
At TAMVER CONSULTING, these events reinforce the need for disciplined systems that
protect integrity and institutional reputation. Our approach prioritises decision structures
that are transparent, traceable and defensible.
2025 demonstrates that failures rarely originate from technical errors alone, but they
emerge from gaps in oversight, unclear boundaries and insufficient validation of tools
and data
