Deloitte Refunds Australian Government After AI Hallucinations Discovered in $440,000 Official Report

Oct 07, 2025 04:49 pm CST

Global consulting firm Deloitte has agreed to partially refund its $440,000 fee to the Australian government after admitting to using generative AI tools that introduced fabricated references and quotes in an official report. The document, which assessed the government's "Future Made in Australia" initiative, contained numerous AI hallucinations including non-existent academic sources, raising significant questions about AI ethics and accountability in high-value government consultancy work.