{"id":64267,"date":"2025-10-08T00:03:08","date_gmt":"2025-10-08T00:03:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/64267\/"},"modified":"2025-10-08T00:03:08","modified_gmt":"2025-10-08T00:03:08","slug":"deloitte-to-partially-refund-australian-govt-for-ai-errors-in-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/64267\/","title":{"rendered":"Deloitte to partially refund Australian govt for AI errors in report"},"content":{"rendered":"<p>Deloitte Australia will partially refund the AU$440,000 (NZ$499,000) paid by the Australian government for a report that was littered with apparent AI-generated errors, including a fabricated quote from a federal court judgment and references to nonexistent academic research papers.<\/p>\n<p>The financial services firm\u2019s report to the Department of Employment and Workplace Relations was originally published on the department&#8217;s website in July. <\/p>\n<p>A revised version was published on Friday after Chris Rudge, a Sydney University researcher of health and welfare law, said he alerted the media that the report was \u201cfull of fabricated references.\u201d<\/p>\n<p>Deloitte had reviewed the 237-page report and \u201cconfirmed some footnotes and references were incorrect,\u201d the department said in a statement Tuesday.<\/p>\n<p class=\"text-greyDarkFaded\">The morning&#8217;s headlines in 90 seconds, including a new injunction in the Marokopa case, Chl\u00f6e Swarbrick slams a \u2018distraction\u2019, and California motorists save a woman trapped under a crashed chopper. (Source: 1News)<\/p>\n<p>\u201cDeloitte had agreed to repay the final instalment under its contract,\u201d the department said. The amount will be made public after the refund is reimbursed.<\/p>\n<p>Asked to comment on the report\u2019s inaccuracies, Deloitte told The Associated Press in a statement the \u201cmatter has been resolved directly with the client.\u201d<\/p>\n<p>Deloitte did not respond when asked if the errors were generated by AI.<\/p>\n<p>A tendency for generative AI systems to fabricate information is known as hallucination.<\/p>\n<p>The report reviewed departmental IT systems\u2019 use of automated penalties in Australia&#8217;s welfare system. The department said the \u201csubstance\u201d of the report had been maintained and there were no changes to its recommendations.<\/p>\n<p>The revised version included a disclosure that a generative AI language system, Azure OpenAI, was used in writing the report.<\/p>\n<p>Quotes attributed to a federal court judge were removed, as well as references to nonexistent reports attributed to law and software engineering experts.<\/p>\n<p>Rudge said he found up to 20 errors in the first version of the report.<\/p>\n<p>The first error that jumped out at him wrongly stated that Lisa Burton Crawford, a Sydney University professor of public and constitutional law, had written a nonexistent book with a title suggesting it was outside her field of expertise.<\/p>\n<p>\u201cI instantaneously knew it was either hallucinated by AI or the world\u2019s best kept secret because I\u2019d never heard of the book and it sounded preposterous,\u201d Rudge said.<\/p>\n<p>Work by his academic colleagues had been used as \u201ctokens of legitimacy,\u201d cited by the report\u2019s authors but not read, Rudge said, adding that he considered misquoting a judge was a more serious error in a report that was effectively an audit of the department\u2019s legal compliance.<\/p>\n<p>\u201cThey\u2019ve totally misquoted a court case then made up a quotation from a judge and I thought, well hang on: that\u2019s actually a bit bigger than academics\u2019 egos. <\/p>\n<p>&#8220;That\u2019s about misstating the law to the Australian government in a report that they rely on. So I thought it was important to stand up for diligence,\u201d Rudge said.<\/p>\n<p>Senator Barbara Pocock, the Australian Greens party\u2019s spokesperson on the public sector, said Deloitte should refund the entire AU$440,000.<\/p>\n<p>Deloitte \u201cmisused AI and used it very inappropriately: misquoted a judge, used references that are non-existent,&#8221; Pocock told the ABC. <\/p>\n<p>&#8220;I mean, the kinds of things that a first-year university student would be in deep trouble for.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Deloitte Australia will partially refund the AU$440,000 (NZ$499,000) paid by the Australian government for a report that was&hellip;\n","protected":false},"author":2,"featured_media":64268,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,85,111,139,69,145],"class_list":{"0":"post-64267","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-australia","12":"tag-new-zealand","13":"tag-newzealand","14":"tag-nz","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/64267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=64267"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/64267\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/64268"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=64267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=64267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=64267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}