In October 2025, fabricated material, including quotes and citations, was discovered in an assurance review of the Australian Department of Employment Workplace Relations, authored by Deloitte in Australia. It subsequently transpired that the non-existent references were in fact the product of AI-generated hallucinations.

After the errors were exposed, it was confirmed that some footnotes and references were incorrect, and that a Generative AI artificial intelligence tool was used in the preparation of the review. Ultimately, fees paid for the engagement were partially refunded to the sum of some A$290,000 (£225,000). 

This incident again brings to the fore the significant financial and reputational risks involved in deploying Generative AI tools without the necessary safeguards. In particular, UK accountancy regulators have been taking increasingly note of the risks posed by the use of AI in the sector.