The accounting giant has agreed to partially refund Australia\u2019s Labor Department for \u201challucinations\u201d in its product<\/p>\n
The Australian arm of UK \u2018big four\u2019 accounting firm Deloitte has agreed to partially refund the cost of a report it produced for the government in Canberra after the document was found to contain multiple AI-generated factual errors, the Australian Financial Review reported on Sunday.
\nThe Department of Employment and Workplace Relations (DEWR) quietly replaced the original report, which was published in July, with a revised 237-page version last Friday, just ahead of a long weekend. Officials initially said the update added new information and corrected \u201csome footnotes and references.\u201d
\nSydney University academic Chris Rudge had earlier flagged numerous apparent \u201challucinations\u201d\u00a0typical of large language models, prompting Deloitte to launch an internal review in August.<\/p>\n
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The updated report includes a new disclosure confirming that AI \u2013 specifically Microsoft\u2019s Azure OpenAI GPT-4o model \u2013 had been used in its preparation. It also corrects over a dozen errors, including references to a non-existent court ruling and academic papers, as well as a fabricated quote attributed to Justice Jennifer Davies (misspelled \u201cDavis\u201d in the first version), the deputy president of the Australian Competition Tribunal.
\nRudge told the Financial Review that Deloitte\u2019s admission transformed what was previously \u201ca strong hypothesis\u201d into certainty, even if its confession was \u201cburied in the methodology section.\u201d
\nA DEWR spokesperson confirmed that Deloitte had \u201cagreed to repay the final installment under its contract,\u201d though the amount was not disclosed. The full study on the computerized application of automated penalties in Australia\u2019s welfare system cost 440,000 Australian dollars (about $290,000).
\nRudge, a welfare expert, reportedly first noticed something was amiss when the report cited a book supposedly written by his Sydney University colleague Lisa Burton Crawford. The title seemed outside her field of expertise and turned out to not exist at all.<\/p>\n","protected":false},"excerpt":{"rendered":"
The accounting giant has agreed to partially refund Australia\u2019s Labor Department for \u201challucinations\u201d in its product The Australian arm of UK \u2018big four\u2019 accounting firm Deloitte has agreed to partially…<\/p>\n","protected":false},"author":1,"featured_media":19997,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-19996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t