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Deloitte to partially refund Australian government for report with apparent AI-generated errors

Deloitte refunded part of the $440,000 Australian government payment after AI-generated errors were found in a compliance report, while UK regulators investigate unrelated audit issues.

  • The Department of Employment and Workplace Relations ordered Deloitte to repay part of a $440,000 contract after finding multiple errors in its report published earlier this year.
  • An updated report notes the 'Targeted Compliance Framework Assurance Review' contained errors typical of AI hallucinations, including fabricated citations, and Deloitte acknowledged using 'a generative AI large language model ' on Friday.
  • Professor Lisa Burton Crawford told the AFR, `It is concerning to see research attributed to me in this way`, after Sydney University Deputy Director of Health Law Chris Rudge noted errors with 'all the hallmarks' of AI.
  • A corrected version was reuploaded on Friday after Deloitte confirmed some footnotes were incorrect and said the matter was resolved directly with the client.
  • Deloitte is rolling out Anthropic's Claude to nearly 500,000 employees and faces UK Financial Reporting Council scrutiny over Stenn audits, increasing regulatory pressure.
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AI 'hallucinated' report to Australian government. Senator: 'Deloitte has a problem with human intelligence.'

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One News Page broke the news in on Monday, October 6, 2025.
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