Deloitte Refunds Portion of $440K Report Over AI Hallucinations

From PC Mag: Deloitte recently signed a deal with Anthropic to give all of its employees access to the Claude chatbot and dramatically expand the use of AI across its business, but the consulting firm might want to keep a close eye on what Claude is churning out.

The Australian government recently ordered Deloitte to refund a portion of the $440,000 it was paid for a compliance report after discovering several errors, The Guardian reports, most of which were phony citations.

A Deloitte spokesperson said the company “confirmed some footnotes and references were incorrect,” and Australian officials re-uploaded a corrected version. Ironically, the report’s methodology says its risk assessment process involved using “Azure OpenAI GPT-4o.”

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