Accounting Giant Deloitte Embarrassed by Report for Australian Government Filled with AI-Generated Garbage

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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, Deputy Director of Health Law at Sydney University, noticed several citations to papers and publications that did not exist. This included multiple references to nonexistent reports by Lisa Burton Crawford, a professor at the University of Sydney law school. Crawford expressed concern about the misattribution of research to her name and sought an explanation from Deloitte regarding the generation of these citations.

In response to these findings, Deloitte and the DEWR published an updated version of the report on Friday, addressing “a small number of corrections to references and footnotes.” more

16 Comments on Accounting Giant Deloitte Embarrassed by Report for Australian Government Filled with AI-Generated Garbage

  1. “Accounting Giant Deloitte” If you say so. They’re based out of the UK. I’ve been around a bit. Never heard of them. That’s why. Their still dividing up the sheep you owe the government.

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  2. @Brad — I’m surprised you haven’t heard of Deloitte (AKA Deloitte and Touche). They’re commonly considered to be one of the “Big Four” accounting firms worldwide, along with Ernst & Young, KPMG, and PwC (PricewaterhouseCoopers). They’re a big deal.

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  3. By sheer volume of business, $67 billion in revenue last year, they are the largest in the world.

    Of course, this raises two questions: how many other audits have they conducted that involved AI prestidigitation, and are other accounting firms doing the same?

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  4. “Once men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.”
    -Frank Herbert, “Dune”

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  5. I knew a guy who worked for Deloitte as a low level auditor. He told me the standard practice was for the lead auditor to ask the client what the findings should be and then tell the auditors what to write.

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  6. Further more, I’m extremely happy not to be large enough to know who these assholes Brits are. I’m pretty damn happy to keep making my life more simple. I’m 69. I could have retired a couple years back but the deal is, I love what I do. I take old military blue prints and redefine them into something that can be duplicated today. And we are really good at it. Some of these parts aren’t even that old but specs get superseded, some are eliminated. It’s like some sort of weird board game. So much so the DLA now comes directly to us. Ironically I can’t stand playing any type of board game for entertainment. Which pisses the boss off to no end. I really don’t like anything British. so fuck these guys. My bad I guess.

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  7. @Bad_Brad:

    I really don’t like anything British. so fuck these guys.

    Stilton cheese is quite nice, plus Margaret “Iron Lady” Thatcher was cool.

    My bad I guess.

    Not at all. There’s much contemptible about the Brits, and that list is topped by surrendering their whole country and culture to the nasty mohammadmen.

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