Deloitte to Reimburse Australian Government for AI-Assisted Report
Canberra, Australia – Deloitte will return funds to the Albanese government after admitting it utilized artificial intelligence tools in the preparation of a $440,000 report evaluating the effectiveness of the federal government’s employment services program, JobActive. The revelation, disclosed during a Senate estimates hearing on October 6, 2025, has sparked scrutiny over the consultancy firm’s practices and the openness of it’s work for the public sector.
The refund comes after Deloitte acknowledged using generative AI to assist in drafting sections of the report delivered in August 2024. While the firm maintains the AI’s contribution did not compromise the report’s findings, the use of the technology was not disclosed to the Department of Employment and Workplace Relations at the time of submission.This incident raises broader questions about the appropriate use of AI by government contractors, the potential for bias or inaccuracies, and the need for clear disclosure protocols.
According to evidence presented to the Senate, the Department became aware of the AI’s involvement following inquiries from The Guardian. Deloitte CEO Adam Powick later informed Employment Minister Tony Burke, leading to an internal review and the decision to reimburse the government.
“We have taken duty for not being upfront about the use of generative AI in this report,” Powick stated in a letter to Senator linda Reynolds, chair of the Senate committee. “We are committed to the highest standards of transparency and accountability, and we regret that we fell short on this occasion.”
The $440,000 contract awarded to Deloitte in February 2024 tasked the firm with assessing the performance of JobActive, a program designed to connect job seekers with employment opportunities. The report’s findings were intended to inform future policy decisions regarding employment services. The government is now reviewing the report to determine if the use of AI impacted its conclusions.
Senator Reynolds expressed concern over the lack of disclosure,stating,”This raises serious questions about the integrity of the report and the extent to which AI was relied upon.It is crucial that government contracts are delivered with full transparency and that any use of AI is clearly identified.” The Senate committee is expected to further investigate the matter in the coming weeks.
