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# Western Australia seeks refund from Deloitte over flawed AI-aided report

**[The Next Web](https://daily.dev/sources/tnw)** · 2 min read · 0 upvotes · 0 comments

## Summary

Western Australia's government wants a fast refund from Deloitte over a flawed report on merging three state universities. The report, which Deloitte said used generative AI for research and proofreading, contained references to sources that don't exist and wrong cost totals. The state paid A$166,000 for the study. Guardian Australia found one appendix error where two merger costs should have totaled A$659m but the report listed A$399m. The government says the errors don't change the report's modelling or findings, and Deloitte will reissue it. In 2025, Deloitte partly refunded Australia's federal government A$440,000 over a similar AI-error report, and KPMG and PwC have had similar issues this year.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/western-australia-deloitte-refund-ai-university-report>

## Questions this post answers

### What happened with Deloitte's AI-generated report for Western Australia's government?

Western Australia's government is seeking a refund from Deloitte after a university merger cost-benefit analysis was found to contain AI-generated references to nonexistent sources and incorrect cost totals. Deloitte used generative AI for research, summarizing, and proofreading. The state paid A$166,000 for the study, and one appendix figure totaled A$399m instead of the correct A$659m.

_Teams relying on AI-assisted reports can track how these accountability disputes unfold on daily.dev._

### Have other consulting firms besides Deloitte had issues with AI hallucinations in reports?

Yes, both KPMG and PwC have faced similar problems with AI-written reports containing hallucinations this year. Deloitte itself had a prior incident in 2025, agreeing to partly refund Australia's federal government A$440,000 for a report that also contained AI-generated errors, showing a pattern across major consulting firms using generative AI for client deliverables.

_Anyone evaluating AI-assisted consulting work can follow these recurring hallucination incidents on daily.dev._

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Tags: [#genai](https://daily.dev/tags/genai)

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