New Delhi: A $440,000 report prepared by Deloitte for the Australian government has turned into a cautionary tale about the risks of using generative AI in official work. The consulting giant has agreed to repay part of its fee after errors, fake references, and inaccurate citations were discovered in the document.

The Department of Employment and Workplace Relations confirmed the refund deal, telling The Guardian that Deloitte would return the final instalment of the contract. The episode has opened up a wider debate on the role of AI in high-stakes policy work and the accountability of major consultancies.

How the errors came to light

The original report was released in July 2024. It was meant to examine Australia’s targeted compliance framework and its IT system that automatically i

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