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Deloitte to Partially Refund Fee After AI Errors in Australian Welfare Review

The firm disclosed Azure OpenAI use during drafting, prompting a refund after fabricated citations and a misattributed court quote were corrected.

Overview

  • A revised report now explicitly notes an Azure OpenAI GPT-4o–based tool chain hosted on the Department of Employment and Workplace Relations’ Azure tenancy was used in early drafting.
  • Corrections removed fabricated academic references and a false quotation attributed to Federal Court Justice Jennifer Davies, including a misspelling of her name.
  • Deloitte and DEWR said the fixes do not alter the report’s substantive findings or recommendations, and the firm says the matter is resolved with the client.
  • The company agreed to return part of its fee, with coverage citing both a $290,000 payment and an A$440,000 contract value, while Senator Barbara Pocock is calling for a full refund.
  • The episode follows media disclosures by University of Sydney researcher Chris Rudge and has intensified scrutiny of consultants’ AI governance and Deloitte’s quality controls.