Deloitte fabricated a direct quote attributed to a federal judge in their welfare compliance report.

“Multiple news outlets reported in late 2025 that a Deloitte report for the Australian government contained numerous AI-generated errors. These included a fabricated quote attributed to a Federal Court judge in a case related to the country's 'robo-debt' welfare scheme. According to Accounting Times, the report misquoted and misspelled the name of Federal Court Justice Jennifer Davies, attributing a fabricated quote to non-existent paragraphs in a 2019 court order. This was one of several errors, including fake academic papers, that led Deloitte to issue a partial refund. Context: The fabricated quote was part of a larger group of errors in a $440,000 AUD report for Australia's Department of Employment and Workplace Relations. The errors, which included citations of non-existent academic papers, were attributed to the use of generative AI in the report's preparation. Deloitte later admitted to using AI and agreed to refund the final payment installment for the contract.”