Deloitte to Partially Refund Australian Government Over AI-Generated Errors in Key Report

Deloitte Australia has agreed to issue a partial refund to the Australian government for a A$440,000 ($290,000) report found to contain significant AI-generated errors, including fabricated quotes and references to non-existent academic work. The financial services firm will repay the final instalment under its contract with the Department of Employment and Workplace Relations, the department confirmed on Tuesday.

The original report, published in July, came under scrutiny after Chris Rudge, a Sydney University researcher, alerted media to its numerous inaccuracies. A revised version was subsequently published on Friday. Following an internal review, Deloitte acknowledged that “some footnotes and references were incorrect.”

While Deloitte has not explicitly confirmed if the errors were AI-generated, the revised 237-page report now includes a disclosure that a generative AI language system, Azure OpenAI, was used in its writing. The removed inaccuracies included quotes falsely attributed to a federal court judge and references to nonexistent reports from experts.

Senator Barbara Pocock, the Australian Greens party’s spokesperson on the public sector, has called for a full refund, stating that Deloitte “misused AI and used it very inappropriately” in a manner that would typically lead to severe academic penalties for a first-year university student.

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