‘Extremely disappointed’: WA government seeks reimbursement from Deloitte over flawed university report

The Western Australian government is seeking a refund from Deloitte after a $166,000 feasibility study on university mergers contained significant calculation errors and AI-generated hallucinations. Experts suggest the report is fundamentally flawed and may require a complete manual rework.
Why it matters
This incident highlights the risks of over-reliance on generative AI in professional consulting and the potential for significant financial and policy consequences in public sector governance.
Deloitte is under pressure after a report into the potential merger of three WA universities contained AI-hallucinated references and incorrect figures. Photograph: Dan Himbrechts/AAP Deloitte is under pressure after a report into the potential merger of three WA universities contained AI-hallucinated references and incorrect figures. Photograph: Dan Himbrechts/AAP Western Australian politics ‘Extremely disappointed’: WA government seeks reimbursement from Deloitte over flawed university report State paid consultancy firm $166,000 for feasibility study on merging the three tertiary institutions
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Prefer the Guardian on Google The Western Australian government has said it is “extremely disappointed” and is seeking an “expedited” cost recovery from Deloitte after errors were discovered in a report about a potential university merger, including AI-hallucinated references and hundreds of millions of dollars in cost discrepancies.
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