Accounting and consulting giant Deloitte has announced it will offer a partial refund to the Australian government for a report that contained AI-hallucinated quotes and references to nonexistent research. This is just the latest example of a professional firm suffering massive embarrassment for the sloppy use of AI tools.

Ars Technica reports that Deloitte Australia has admitted to using a generative AI tool, specifically Azure OpenAI GPT-4o, in the creation of a report for the Australian government. The report, titled “Targeted Compliance Framework Assurance Review,” was published by the Department of Employment and Workplace Relations (DEWR) in August and cost Australian taxpayers nearly $440,000 AUD (approximately $290,000 USD).

Shortly after the report’s publication, Chris Rudge,

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