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Fortune
Fortune
Nino Paoli

Deloitte was caught using AI in $290,000 report to help the Australian government crack down on welfare after a researcher flagged hallucinations

Logo consulting company Deloitte Touche Tohmatsu Limited building in downtown Frankfurt, multinational professional services network, Big Four accounting firms, Frankfurt - January, 19, 2025. (Credit: Getty Images)

Deloitte’s member firm in Australia will pay the government a partial refund for a $290,000 report that contained alleged AI-generated errors, including references to non-existent academic research papers and a fabricated quote from a federal court judgment. 

The report was originally published on the Australian government’s Department of Employment and Workplace Relations website in July. A revised version was quietly published on Friday after Sydney University researcher of health and welfare law Chris Rudge said he alerted media outlets that the report was “full of fabricated references.”

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