Deloitte, one of the prominent Big Four accounting firms, will provide a partial refund to the Australian federal government after a report revealed inaccuracies linked to AI usage. Ordered by the Department of Employment and Workplace Relations (DEWR) in December 2024, the report sought to assess a specific compliance framework alongside its IT system. The review was designed to tackle issues within a welfare system that automatically penalizes jobseekers.
Released on 4 July, the report uncovered extensive problems. However, in August, it became apparent that it contained multiple inaccuracies, including non-existent references and citations. As a result, the report was re-uploaded the previous Friday with amendments. Despite these revisions, Deloitte asserts that the AI-generated inaccuracies did not influence the report’s core content, findings, or suggestions.
A DEWR spokesperson confirmed that certain footnotes and references were incorrect. The updated report now contains a reference to generative AI usage. Senator Deborah O’Neill of the Australian Labor Party condemned Deloitte for a “human intelligence issue,” proposing that procurers might find it more beneficial to utilize a subscription to ChatGPT.
Consequently, DEWR confirmed that Deloitte would reimburse the last installment of its AU$440,000 (£216,000) invoice, with details to be disclosed once the transaction is finalized. In August, Deloitte Australia announced a revenue of $2.55 billion for the 2025 financial year. A spokesperson for Deloitte Australia mentioned, “The issue has been resolved directly with the client.”
This incident unfolds against the backdrop of a technological shift within the industry, with Deloitte and other Big Four firms actively investing in AI tools around the globe.
