A government researcher in Canberra, Australia, was reading a 237-page report on welfare compliance.

“In October 2025, news broke that a Deloitte report for the Australian government on its welfare compliance system contained AI-generated errors. Multiple sources confirm the report was 237 pages long. However, the errors were discovered and flagged not by a government researcher in Canberra, but by Chris Rudge, a health and welfare law researcher at the University of Sydney. While the report was for the Australian government, the person who identified the flaws was an academic in Sydney. Context: The report, commissioned by Australia's Department of Employment and Workplace Relations, used AI that 'hallucinated' fake legal cases and non-existent academic papers. Following the discovery of the errors, Deloitte agreed to partially refund the government for the report.”