Deloitte to refund part of a $440,000 fee to the Australian government after AI errors were found in a report

Deloitte is refunding part of a $440,000 fee to the Australian government after AI-generated errors were found in a report on the “Future Made in Australia” initiative. The report contained fabricated citations created using Azure OpenAI GPT-4o. Deloitte said AI was used only in early drafts. The incident highlights ethical concerns over AI use in consulting, prompting stricter oversight rules.