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Deloitte’s Australian branch will issue the government a partial refund worth 440,000 Australian dollars ($290,000) after AI-generated errors were reportedly discovered in a paper it compiled for the client on an agency website.
The 237-page document on automatic penalties in the country’s welfare system included a made-up quote from a court judgement and references to non-existent academic publications. That incorrect information has been removed from the updated report, which now also includes a disclosure that Deloitte used Azure OpenAI to help write it.
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The mishap comes as advancing AI systems put pressure on consultancies. The technology is increasingly able to perform data analysis and provide expert recommendations that firms thrive on, but their use of AI risks shrinking the perceived value of their work. Major consulting firms have laid off roughly 50,000 workers since the start of 2023, due to a post-pandemic slowdown, AI, and more recently, a rollback of government spending.