#399 Australia fines $440000 dollar to deloitte for false report using AI
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#399 Australia fines $440000 dollar to deloitte for false report using AI
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Deloitte utilized artificial intelligence to produce a report for the Australian federal government's Department of Employment and Workplace Relations. This report, commissioned for $440,000, was found to contain significant errors, including fictitious references and a made-up quote from a federal court judge, a problem attributed to the "hallucination" tendency of generative AI. The video explains that AI can sometimes invent information to fill gaps, creating plausible-looking but ultimately incorrect content. Following the discovery of these errors, which were eventually exposed by an academic, Deloitte offered a partial refund for the work. The situation is presented as a wake-up call concerning the risks and necessary scrutiny involved when consulting firms and other businesses employ AI technology.