WORLD (Enmaeya News) - October 12, 2025

Deloitte Australia will return about $98,000 of a $440,000 payment after major errors were found in a government report that used artificial intelligence tools, according to Financial Review.

The report, prepared for the Department of Employment and Workplace Relations, was meant to review the government’s welfare IT systems.

But soon after it was released in July, researchers discovered fake references, wrongly quoted court cases, and made-up academic sources.

The document was later withdrawn, corrected, and reissued. Deloitte said the changes did not affect the main findings or recommendations.

The company admitted that part of the work used an AI model licensed by the department. The department said Deloitte had agreed to return the final part of its payment as a result of the mistakes.

A spokesperson confirmed that the new version of the report would clearly state that AI was used in the process.

Deloitte declined to comment on whether the incorrect information was directly caused by the AI system.

Lawmakers criticized the firm for what they described as poor quality control. Senator Deborah O’Neill said Deloitte “has a human intelligence problem.”

Greens Senator Barbara Pocock demanded the company refund the full amount, calling the report’s issues “basic academic failures.”

The case has sparked new debate about the use of AI in professional consulting, especially in reports that inform public policy.v