Deloitte AI Scandal

Deloitte, one of the big four consulting giants, just refunded the Australian government

after AI fabrications slipped into a $440,000 welfare report. Here's what happened. The report,

prepared for Australia's Department of Employment and Workplace Relations, was found to include fake citations,

phantom footnotes, and even a made-up court quote. After investigators caught the errors,

Deloitte admitted it had used a generative AI tool based on GPT-4o to help fill documentation gaps.

University of Sydney's Dr. Christopher Rudge first flagged the issue, saying,

"You can't trust the recommendations when the foundation is flawed." The government re-uploaded

a corrected version, removing more than a dozen bogus references. Deloitte agreed to refund the final