Deloitte AI Scandal: Report Full of Fakes

Imagine paying almost half a million dollars for a government report—only to find out… it was partly

written by AI. And not just that—it made up quotes, fake studies, and even a judge’s

name. Welcome to the Deloitte AI scandal, Australia’s biggest tech embarrassment

of the year. So here’s what went down. The Australian government hired Deloitte—yes,

one of the world’s biggest consulting firms—to write a report on how welfare systems handle automation.

Price tag? $440,000 AUD. But a Sydney University researcher named Dr. Chris Rudge

later discovered something shocking: The 237-page document was full of errors—fake legal quotes,

made-up academic references, and even citations to books that don’t exist!.