Big Four firm Deloitte is preparing to issue a partial refund to the Australian federal government following a report that contained numerous errors attributed to AI usage.
The consultancy was engaged by the Department of Employment and Workplace Relations (DEWR) to examine a targeted compliance framework and its IT system in December 2024, as reported by .
The 'independent assurance review' conducted by the Big Four firm was designed to assist the department in evaluating issues with a welfare system that automatically sanctions jobseekers.
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The firm's report on the framework, released on 4 July, identified extensive problems.
Nevertheless, after it emerged in August that the document featured multiple inaccuracies, including fictitious references and citations, the report was re-published last Friday.
Despite the revisions implemented, the firm maintained that AI-generated mistakes did not influence or alter the substantive content, findings, and recommendations in the original document.
'Human intelligence problem'
"Deloitte conducted the independent assurance review and has confirmed some footnotes and references were incorrect," a spokesperson for the department said.
In the revised version of the report, Deloitte included a reference to the use of generative AI in its appendix.
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Senator Deborah O'Neill from the Australian Labor Party accused the consultancy firm of having a "human intelligence problem".
"Perhaps instead of a big consulting firm, procurers would be better off signing up for a ChatGPT subscription," she added. Consequently, the DEWR confirmed on Monday that Deloitte would settle the remaining portion of its AU$440,000 (£216,000) invoice under the agreement, which will be disclosed publicly once the transaction concludes.
In August, Deloitte Australia reported revenue of $2.55bn for the 2025 financial year.
Addressing the matter, a Deloitte Australia spokesperson stated: "The matter has been resolved directly with the client."
This development comes as the industry undergoes significant technological transformation, with Deloitte, alongside other Big Four practices, heavily investing in AI capabilities worldwide.