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Deloitte Australia is under fire after revelations that a 237-page government report it produced using artificial intelligence contained major errors and false references. The report, which cost the Australian Government AU$440,000, examined the use of automated penalties in welfare systems.
Sydney University researcher Chris Rudge discovered that large sections were generated using OpenAI’s GPT-4 model via Microsoft Azure, exposing fabricated citations and misquoted legal material. The incident sparked outrage from lawmakers and raised urgent questions about the ethical use of AI in professional consulting.
Australian Minister Murray Watt called the act “unacceptable,” while Senator Barbara Pocock described Deloitte’s actions as “a misuse of AI that misled the government.” Despite the findings, Deloitte has only partially refunded the fee and maintains that the issue has been “resolved with the client.”
The controversy has renewed calls for stronger oversight of AI-generated work and transparency in professional industries. Experts warn that unchecked reliance on AI could compromise integrity and accountability in business and public policy.