Newfoundland overhauls procurement after AI-generated citation errors in government reports, requiring vendor disclosure and audits.

Newfoundland and Labrador has overhauled its procurement process after false citations, likely AI-generated, appeared in government reports, including one by Deloitte Canada. The province now requires vendors to disclose AI use in contracts and allows government audits, making it a leader in Canada on AI oversight. Changes follow errors in health and education reports, prompting a review of compensation. Deloitte said it used AI only for limited citation support and made corrections. Other provinces have varying or no AI procurement rules.