AI Slip-Up at Deloitte

Deloitte Australia has agreed to refund part of a 440,000-Australian-dollar contract after an investigation uncovered multiple AI-generated errors in a welfare report prepared for the Department of Employment and Workplace Relations, according to reporting by Reuters and The Associated Press.

The 237-page report reportedly included fabricated citations, a false legal quotation, and references to research papers that did not exist. AP News noted that Deloitte used Microsoft’s Azure OpenAI model to produce portions of the document without initially disclosing it.

University of Sydney researcher Dr. Chris Rudge identified about twenty inaccuracies, prompting a revised version that removed false content and acknowledged AI use. Senator Barbara Pocock criticized the incident as a misuse of AI and called for stronger governance in public-sector applications.

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