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flag Deloitte Australia to refund part of $440K government fee after using AI that created false data in welfare report.

flag Deloitte Australia will issue a partial refund after admitting it used generative AI in a $440,000 government report on welfare system compliance that contained fabricated references and a false court quote. flag The errors, described as AI "hallucinations," were identified by a real academic and led to a revised report with corrections. flag Though Deloitte stated the report’s findings remain valid, the incident has raised concerns about AI reliability, oversight, and transparency in high-stakes public sector work.

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