Deloitte to pay money back to Albanese government after using AI in $440,000 report

The Deloitte report contained ‘hallucinations’ where AI models may fill in gaps, misinterpret data, or try to guess answers, University of Sydney academic Dr Christopher Rudge says. Photograph: Dan Himbrechts/AAP

Deloitte will provide a partial refund to the federal government over a $440,000 report that contained several errors, after admitting it used generative artificial intelligence to help produce it.

The Department of Employment and Workplace Relations (DEWR) confirmed Deloitte would repay the final instalment under its contract, which will be made public after the transaction is finalised. It comes as one Labor senator accused the consultancy firm of having a “human intelligence problem”.