{"id":57268,"date":"2025-10-06T08:19:07","date_gmt":"2025-10-06T08:19:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/57268\/"},"modified":"2025-10-06T08:19:07","modified_gmt":"2025-10-06T08:19:07","slug":"deloitte-to-pay-money-back-to-albanese-government-after-using-ai-in-440000-report-australian-politics","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/57268\/","title":{"rendered":"Deloitte to pay money back to Albanese government after using AI in $440,000 report | Australian politics"},"content":{"rendered":"<p class=\"dcr-130mj7b\">Deloitte will provide a partial refund to the federal government over a $440,000 report that contained several errors, after admitting it used generative artificial intelligence to help produce it.<\/p>\n<p class=\"dcr-130mj7b\">The Department of Employment and Workplace Relations (DEWR) confirmed Deloitte would repay the final instalment under its contract, which will be made public after the transaction is finalised. It comes as one Labor senator accused the consultancy firm of having a \u201chuman intelligence problem\u201d.<\/p>\n<p class=\"dcr-130mj7b\">Deloitte was commissioned by the department to review the targeted compliance framework and its IT system, used to automate penalties in the welfare system if <a href=\"https:\/\/www.theguardian.com\/australia-news\/article\/2024\/may\/16\/centrelink-mutual-obligations-budget-changes-jobseeker-suspensions\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">mutual obligations<\/a> weren\u2019t met by jobseekers, in December 2024.<\/p>\n<p class=\"dcr-130mj7b\"><a href=\"https:\/\/www.theguardian.com\/email-newsletters?CMP=copyembed&amp;CMP=emailbutton\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Sign up: AU Breaking News email<\/a><\/p>\n<p class=\"dcr-130mj7b\">The subsequent report found widespread issues, including a lack of \u201ctraceability\u201d between the rules of the framework and the legislation behind it, as well as \u201csystem defects\u201d. It said an IT system was \u201cdriven by punitive assumptions of participant non-compliance\u201d.<\/p>\n<p class=\"dcr-130mj7b\">It was first published on 4 July. It was re-uploaded to the DEWR website on Friday, after the <a href=\"https:\/\/www.afr.com\/companies\/professional-services\/academics-raise-alarm-over-suspected-ai-use-in-deloitte-report-20250822-p5mp0f\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Australian Financial Review<\/a> in August reported that multiple errors had been found, including nonexistent references and citations.<\/p>\n<p class=\"dcr-130mj7b\">University of Sydney academic, Dr Christopher Rudge, who first highlighted the errors, said the report contained \u201challucinations\u201d where AI models may fill in gaps, misinterpret data, or try to guess answers.<\/p>\n<p class=\"dcr-130mj7b\">\u201cInstead of just substituting one hallucinated fake reference for a new \u2018real\u2019 reference, they\u2019ve substituted the fake hallucinated references and in the new version, there\u2019s like five, six or seven or eight in their place,\u201d he said.<\/p>\n<p class=\"dcr-130mj7b\">\u201cSo what that suggests is that the original claim made in the body of the report wasn\u2019t based on any one particular evidentiary source.\u201d<\/p>\n<p class=\"dcr-130mj7b\">The updated review noted a \u201csmall number of corrections to references and footnotes\u201d, but the department has said there have been no changes to the review\u2019s recommendations.<\/p>\n<p class=\"dcr-130mj7b\">\u201cDeloitte conducted the independent assurance review and has confirmed some footnotes and references were incorrect,\u201d a spokesperson for the department said.<\/p>\n<p class=\"dcr-130mj7b\">\u201cThe substance of the independent review is retained, and there are no changes to the recommendations.\u201d<\/p>\n<p class=\"dcr-130mj7b\">In the updated version of the report, Deloitte added reference to the use of generative AI in its appendix. It states that a part of the report \u201cincluded the use of a generative artificial intelligence (AI) large language model (Azure OpenAI GPT \u2013 4o) based tool chain licensed by DEWR and hosted on DEWR\u2019s Azure tenancy.\u201d<\/p>\n<p class=\"dcr-130mj7b\">Deloitte did not state that artificial intelligence was the reason behind the errors in its original report. It also stood by the original findings of the review.<\/p>\n<p class=\"dcr-130mj7b\">\u201cThe updates made in no way impact or affect the substantive content, findings and recommendations in the report,\u201d it stated in the amended version.<\/p>\n<p class=\"dcr-130mj7b\">A spokesperson for Deloitte said \u201cthe matter has been resolved directly with the client\u201d.<\/p>\n<p><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-17\" class=\"dcr-jzxpee\">skip past newsletter promotion<\/a><\/p>\n<p class=\"dcr-rsfwa\">Sign up to Breaking News Australia<\/p>\n<p class=\"dcr-1xjndtj\">Get the most important news as it breaks<\/p>\n<p>Privacy Notice: Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on <a data-ignore=\"global-link-styling\" href=\"https:\/\/www.theguardian.com\" rel=\"noreferrer nofollow noopener\" class=\"dcr-1rjy2q9\" target=\"_blank\">theguardian.com<\/a> to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our <a data-ignore=\"global-link-styling\" href=\"https:\/\/www.theguardian.com\/help\/privacy-policy\" rel=\"noreferrer nofollow noopener\" class=\"dcr-1rjy2q9\" target=\"_blank\">Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google <a data-ignore=\"global-link-styling\" href=\"https:\/\/policies.google.com\/privacy\" rel=\"noreferrer nofollow noopener\" class=\"dcr-1rjy2q9\" target=\"_blank\">Privacy Policy<\/a> and <a data-ignore=\"global-link-styling\" href=\"https:\/\/policies.google.com\/terms\" rel=\"noreferrer nofollow noopener\" class=\"dcr-1rjy2q9\" target=\"_blank\">Terms of Service<\/a> apply.<\/p>\n<p id=\"EmailSignup-skip-link-17\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-jzxpee\">after newsletter promotion<\/p>\n<p class=\"dcr-130mj7b\">Rudge said that, despite his criticism, he hesitates to say the whole report should be \u201cregarded as illegitimate\u201d, because the conclusions concur with other widespread evidence.<\/p>\n<p class=\"dcr-130mj7b\">Labor senator Deborah O\u2019Neill, who was on a senate inquiry into the integrity of consulting firms, said it looked like \u201cAI is being left to do the heavy lifting\u201d.<\/p>\n<p class=\"dcr-130mj7b\">\u201cDeloitte has a human intelligence problem. This would be laughable if it wasn\u2019t so lamentable. A partial refund looks like a partial apology for substandard work,\u201d she said.<\/p>\n<p class=\"dcr-130mj7b\">\u201cAnyone looking to contract these firms should be asking exactly who is doing the work they are paying for, and having that expertise and no AI use verified.<\/p>\n<p class=\"dcr-130mj7b\">\u201cPerhaps instead of a big consulting firm, procurers would be better off signing up for a ChatGPT subscription.\u201d<\/p>\n<p class=\"dcr-130mj7b\">The <a href=\"https:\/\/www.afr.com\/companies\/professional-services\/deloitte-to-refund-government-after-admitting-ai-errors-in-440k-report-20251005-p5n05p\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">AFR found several incorrect references<\/a> in the original report, including nonexistent reports by professors at the University of Sydney and the Lund University in Sweden.<\/p>\n<p class=\"dcr-130mj7b\">The paper also reported a made up reference to a court decision in a <a href=\"https:\/\/www.theguardian.com\/australia-news\/centrelink-debt-recovery\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">robodebt<\/a> case, Deanna Amato v Commonwealth. Deloitte wrote in it\u2019s final report that the update \u201camend[ed] the summary of the Amato proceeding which contained errors\u201d.<\/p>\n<p>Quick GuideContact us about this storyShow<img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/1759738747_77_4000.jpg\" alt=\"\" class=\"dcr-1vs4o7z\"\/><\/p>\n<p>The best public interest journalism relies on first-hand accounts from people in the know.<\/p>\n<p>If you have something to share on this subject, you can contact us confidentially using the following methods.<\/p>\n<p>Secure Messaging in the Guardian app<\/p>\n<p>The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. 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Select \u2018Secure Messaging\u2019. <\/p>\n<p>SecureDrop, instant messengers, email, telephone and post<\/p>\n<p>If you can safely use the Tor network without being observed or monitored, you can send messages and documents to the Guardian via our <a href=\"https:\/\/www.theguardian.com\/securedrop\" rel=\"nofollow noopener\" target=\"_blank\">SecureDrop platform<\/a>.<\/p>\n<p>Finally, our guide at <a href=\"https:\/\/www.theguardian.com\/tips\" rel=\"nofollow noopener\" target=\"_blank\">theguardian.com\/tips<\/a>\u00a0lists several ways to contact us securely, and discusses the pros and cons of each.\u00a0<\/p>\n<p>Illustration: Guardian Design \/ Rich Cousins<\/p>\n<p>Thank you for your feedback.<\/p>\n","protected":false},"excerpt":{"rendered":"Deloitte will provide a partial refund to the federal government over a $440,000 report that contained several errors,&hellip;\n","protected":false},"author":2,"featured_media":57269,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-57268","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/57268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=57268"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/57268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/57269"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=57268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=57268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=57268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}