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

August 22, 2025

A $439,000 Deloitte report for the Australian Department of Employment and Workplace Relations on welfare compliance allegedly contained fabricated references and a misattributed legal quote. Deleted citations reportedly referred to non-existent works, and a Federal Court judgment was misstated. Deloitte later acknowledged limited use of generative AI in preparing the report and issued a corrected version with a partial refund.

This incident underscores the importance of trustworthy AI governance and safe and secure AI practices. For those interested in shaping AI governance, consider joining Project Cerebellum and learning more about our efforts to Govern, Map, Measure, and Manage incidents like this one through HISPI Project Cerebellum TAIM.

JOIN US

Matched TAIM controls

Suggested mapping from embedding similarity (not a formal assessment). Browse all TAIM controls

Alleged deployer
deloitte
Alleged developer
unknown-large-language-model-developers
Alleged harmed parties
scholars-erroneously-cited, lisa-burton-crawford, janina-boughey, government-of-australia, general-public-of-australia, epistemic-integrity, department-of-employment-and-workplace-relations-(dewr), carolyn-adams, academics, deloitte

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/1193

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.