Technology10/6/2025Ars Technica

Deloitte will refund Australian government for AI hallucination-filled report

Deloitte will refund Australian government for AI hallucination-filled report

Deloitte, a leading consulting firm, has agreed to refund the Australian government for a report that contained inaccuracies and hallucinations generated by an AI system. The issue came to light in August when fake citations were discovered in the report. Deloitte has since acknowledged that it used GPT-4o, an advanced language model, to generate parts of the report. The firm stated that it did not properly disclose the use of AI and that the report contained information that was not factual. The Australian government has accepted Deloitte's offer to refund the cost of the report, which was commissioned to provide insights on a range of policy issues. The incident has raised concerns about the use of AI in the production of government reports and the need for greater transparency and accountability when it comes to the use of such technologies.

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