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Consultants Forced to Pay Money Back After Getting Caught Using AI for Expensive “Report”

ohog5 by ohog5
October 6, 2025
in Tech
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Consultants Forced to Pay Money Back After Getting Caught Using AI for Expensive “Report”
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Monetary consulting agency Deloitte was compelled to reissue the Australian authorities $291,000 US after getting caught utilizing AI and together with hallucinated numbers in a current report.

As The Guardian reports, Australia’s Division of Employment and Office Relations (DEWR) confirmed that the agency agreed to repay the ultimate installment as a part of its contract. It had been commissioned in December to evaluate a system that automates penalties within the welfare system in case jobseekers don’t meet their mutual obligations.

Nonetheless, the “impartial assurance evaluate” bore regarding indicators that Deloitte had minimize corners, and included a number of errors reminiscent of references to nonexistent citations — an indicator of AI slop.

The “hallucinations” as soon as once more spotlight how generative AI use within the office can enable obvious errors to slide by way of, from attorneys getting caught citing nonexistent circumstances to Trump’s Facilities for Illness Management referencing a study that was dreamed up by AI earlier this yr.

Deloitte, amongst different consulting companies, have poured billions of {dollars} into creating AI instruments that they are saying might velocity up their audits, because the Financial Times reports.

Earlier in the present day, the newspaper noted that the UK’s six largest accounting companies hadn’t been formally monitoring how AI impacts the standard of their audits, highlighting the likelihood that many different reviews could embrace comparable hallucinations.

College of Sydney sociological lecturer Christopher Rudge, who first highlighted the problems with Deloitte’s DEWR report, stated that the corporate tried to cowl its tracks after sharing an up to date model of the error-laden report.

“As an alternative of simply substituting one hallucinated pretend reference for a brand new ‘actual’ reference, they’ve substituted the pretend hallucinated references and within the new model, there’s like 5, six or seven or eight of their place,” he informed The Guardian. “So what that implies is that the unique declare made within the physique of the report wasn’t based mostly on anybody specific evidentiary supply.”

Regardless of being caught red-handed utilizing AI to generate hallucinated citations, Deloitte stated that the general thrust of its steering hadn’t modified. A footnote within the revised model famous that staffers had used OpenAI’s GPT-4o for the report.

“Deloitte carried out the impartial assurance evaluate and has confirmed some footnotes and references have been incorrect,” a spokesperson informed The Guardian. “The substance of the impartial evaluate is retained, and there are not any modifications to the suggestions.”

However outraged lawmakers calling for extra oversight.

“Deloitte has a human intelligence drawback,” Labor senator Deborah O’Neill, who represents New South Wales, told the Australian Financial Review. “This is able to be laughable if it wasn’t so lamentable… too usually, as our parliamentary inquiries have proven, these consulting companies win contracts by promising their experience, after which when the deal is signed, they provide you no matter [staff] prices them the least.”

“Anybody trying to contract these companies ought to be asking precisely who’s doing the work they’re paying for, and having that experience and no AI use verified,” O’Neill added. “In any other case, maybe as a substitute of an enormous consulting agency procurers can be higher off signing up for a ChatGPT subscription.”

“This report was meant to assist expose the failures in our welfare system and guarantee honest remedy for revenue assist recipients, however as a substitute Labor [is] letting Deloitte take them for a trip,” Greens senator Penny Allman-Payne informed the AFR. “Labor ought to be insisting on a full refund from Deloitte, and they should cease outsourcing their selections to their advisor mates.”

Extra on hallucinations: Fixing Hallucinations Would Destroy ChatGPT, Expert Finds



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