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A botched government report should be wake-up call on AI hype

Elizabeth Knight Business columnist October 6, 2025 — 4.07pm

Deloitte Australia, botching a report to a federal government department thanks to AI doing some of the heavy lifting, is a canary in the coalmine for the technology being as big a hazard in the workplace as it is an aid.

Who knew (outside the tech industry and those well versed in tech lingo) that your average AI assistant was capable of “hallucinating”?

These so-called hallucinations are created as part of the AI’s pattern-matching process, especially when the model has limited or biased training data and a lack of real-world understanding of the problem it’s trying to solve. This leads to the AI model guessing and delive

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