Skip to main content
Promotional banner ad for the Penetration Testing Report Kit
IncidentSeverity M: moderate, 2/5Reported: press reporting only

Deloitte faced calls to refund WA government after citation errors in AI-assisted university merger report

Consultancy firm Deloitte faces pressure to refund part of a $166,000 fee paid by the West Australian government for economic analysis on a proposed university merger, after citation errors were discovered in the report. Political leaders questioned the report's quality. The press report links the errors to reports where artificial intelligence was used in preparation, and says it is the second time in just over a year that Deloitte has faced calls to pay back government departments.

What the AI did

Artificial intelligence was reportedly used in preparing a Deloitte economic report for the West Australian government on a proposed university merger, and citation errors were later found in that report. It has not been reported which AI tool was used or exactly what part it played in the errors.

First reported October 16, 2026 · Added to the register October 26, 2026 · 1 source

Deployer
Deloitte
Affected
West Australian government
Country
Australia (Western Australia)
When it happened
Not stated in the sources
First reported
October 16, 2026

What this means for you

Could this affect you?

Yes

If you commission reports from consultants. Government departments and other clients that commission consultancy reports where AI may have been used in drafting, and the decision-makers who rely on those reports, could receive work containing errors.

What to check

  • Require consultants to disclose any AI use in their deliverables.
  • Check citations and sources before accepting a commissioned report.
  • Include refund or remediation clauses for AI-caused errors in consultancy contracts.

Areas of your AI programme this touches

Every fact and its source (3)
  1. Fee paid for the report$166,000
    “refund part of a $166,000 fee paid by the West Australian government”[1]
  2. Problem foundCitation errors in the report
    “after citation errors were discovered, prompting political leaders to question the quality of the report”[1]
  3. Prior similar caseSecond time in just over a year Deloitte faced refund calls over AI-linked report errors
    “It is the second time in just over a year that calls have been made for the big four firm to pay back government departments after errors showed up in reports where artificial intelligence had been used in their preparation.”[1]

Sources

  1. Deloitte under pressure to pay up for WA universities merger report AI errors
    afr.com · October 16, 2026

How this record is classified. Severity M (2/5): harm to individuals, or a policy breach with limited reach. OECD level: incident, an event in which an AI system led to actual harm. Evidence: Reported, meaning press reporting only.

The facts in At a glance and in Every fact and its source are quoted from the sources listed. The summary, What the AI did and What this means for you are written from those sources and checked against them automatically before publication. Records reflect what has been disclosed, not everything that has happened. Incidents are found through news feeds and the GDELT Project.

Promotional banner for the Pentest Readiness checklist download