AU | Incident Report
Professional Malpractice
2025-12-03
Deloitte Australia Partner Resigns Following AI Hallucination Scandal
AI Model: Unspecified generative AI tool ConsultingHallucinationAudit
I. Executive Summary
A senior partner at Deloitte Australia reportedly exited the firm after an AI-assisted report for the federal government was found to contain fabricated references and non-existent footnotes.
II. Key Facts
- Firm refunded $97,000 of a $440,000 contract due to errors. • Report included false quotes attributed to a Federal Court judge. • Discovery made by academics identifying fake citations.
III. Regulatory & Ethical Implications
Underscores the risk of unverified AI outputs in high-stakes public sector consulting.