Deloitte will reimburse a portion of an Australian government contract after admitting that a report it provided contained errors generated by AI. The AI-derived report initially contained incorrect quotes and references, leading Deloitte to agree to refund the final payment of its AU$440,000 deal with the Department of Employment and Workplace Relations (DEWR). Upon review, Deloitte acknowledged that generative AI had been used to generate sections of the report, which resulted in fabricated references and a misquoted federal judgment. Despite these inaccuracies, the core findings and recommendations of the report remain unchanged, according to DEWR. Deloitte is currently addressing the incident, reassuring clients of its commitment to high-quality, expert-driven consultancy work.