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Deloitte to pay money back to Albanese government after using AI in $440k report

13 hours ago
https://www.theguardian.com/australia-news/2025/oct/06/deloitte-to-pay-money-back-to-albanese-government-after-using-ai-in-440000-report
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  • #AI errors
  • #government contract
  • #Deloitte
  • Deloitte will provide a partial refund to the federal government for a $440,000 report containing errors, admitting it used generative AI.
  • The Department of Employment and Workplace Relations (DEWR) confirmed Deloitte would repay the final contract installment.
  • The report reviewed the targeted compliance framework and IT system for welfare penalties, finding widespread issues like 'system defects' and lack of 'traceability'.
  • Errors in the report included nonexistent references and citations, described as 'hallucinations' by AI models.
  • Deloitte updated the report, correcting references but maintaining the original recommendations.
  • Labor senator Deborah O’Neill criticized Deloitte, suggesting the firm has a 'human intelligence problem' and questioning the use of AI in consultancy work.
  • The Australian Financial Review found incorrect references, including fake reports and a made-up court decision.
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