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Incident 1193: Purportedly Taxpayer-Funded Deloitte Report for Australian Government Contains Alleged AI-Generated Citations and Fabricated Legal Quote

Description: Australian academics reportedly identified alleged fabricated references and a misattributed legal quote in a $439,000 Deloitte report for the Department of Employment and Workplace Relations on welfare compliance. Several citations allegedly referred to works that do not exist, and a Federal Court decision was reportedly misstated. Experts allege the errors suggest use of generative AI. Deloitte has denied wrongdoing, but DEWR is investigating.

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Alleged: Unknown large language model developer developed an AI system deployed by Deloitte, which harmed Department of Employment and Workplace Relations (DEWR) , Government of Australia , General public of Australia , Epistemic integrity , Academics , Lisa Burton Crawford , Carolyn Adams , Janina Boughey and Scholars erroneously cited.
Alleged implicated AI system: Unknown large language model

Incident Stats

Incident ID
1193
Report Count
1
Incident Date
2025-08-22
Editors
Daniel Atherton

Incident Reports

Reports Timeline

Incident OccurrenceDeloitte report suspected of containing AI invented quote
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Deloitte report suspected of containing AI invented quote

Deloitte report suspected of containing AI invented quote

afr.com

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Deloitte report suspected of containing AI invented quote
afr.com · 2025

New errors have been found in a major report Deloitte prepared for the federal government, raising further suspicions some of the content was generated by artificial intelligence.

On Friday The Australian Financial Review revealed that Delo…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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