Deloitte was forced to confess it initially failed to tell the employment department that artificial intelligence was behind a litany of errors in one of its reports, after being called out for falsely claiming it had declared the cause of the mistakes.

Previously unreleased correspondence between the consulting giant and the Department of Employment and Workplace Relations reveals new details about how it sought to limit the fallout from revelations that AI hallucinations ended up in the $440,000 report on the welfare system.

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