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Deloitte to Refund Government After Admitting AI Errors in $440K Report

Australian Financial Review

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Deloitte will issue a partial refund to the government after admitting that artificial intelligence had been used in the creation of a report littered with errors.

Summary

Deloitte Australia has agreed to issue a refund to the federal government after it was revealed that a report prepared for the Department of Workplace Relations used artificial intelligence inappropriately, resulting in significant errors. The $440,000 report contained fabricated references and quotes, prompting an extensive revision. This incident highlights the growing concern over the reliance on AI tools in professional and governmental reports, especially in ensuring the accuracy and reliability of AI-generated content. Although the article does not directly relate to catastrophic risks, it underlines the importance of robust governance and oversight mechanisms in AI deployments to prevent missteps in high-stakes environments.

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CompaniesProfessional ServicesConflict of interestPrint articleEdmund TadrosandPaul KarpOct 5, 2025 – 7.41pmSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginDeloitte Australia will issue a partial refund to the federal government after admitting that artificial intelligence had been used in the creation of a $440,000 report littered with errors including three nonexistent academic references and a made-up quote from a Federal Court judgement.A new version of the report for the Department of Workplace Relations (DEWR) was quietly uploaded to the department’s website on Friday, ahead of a long weekend across much of Australia. It features more than a dozen deletions of nonexistent references and footnotes, a rewritten reference list, and corrections to multiple typographic errors.Loading...Edmund Tadrosleads our coverage of the professional services sector. He is based in our Sydney newsroom.EmailEdmundatedmundtadros@afr.com.auPaul Karpis The Australian Financial Review’s NSW political correspondent.SaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreFetching latest articlesHow we shot the 2025 Power issueMatthew DrummondAustralia’s 10 most powerful people in 2025The year’s top 10 power players (that aren’t people)‘It was coming out in my sleep’: How the Medibank CEO combats stressSally Patten, Mandy Coolen and Lili Tisch-BostockFinally, women are leading some of the biggest deals in the countryBillionaire property whisperer Monika Tu spills her secretsIt’s the thought that counts at this remote Tasmanian luxury lodgeMaxim BoonSkiing alpine backcountry is this Melbourne VP’s thrill of choiceThe handbag worth $4.4m to this small brandHow two waiters turned $500 into a global events companyLauren Sams and Iona RenniePrivate equity buyer Blackstone circles Hamilton Island dealSnow family closes door to any sale of Canberra Airport