World News for Students of English

13-10-2025 15:00

The consulting firm Deloitte used AI to help prepare a government report for Australia’s Department of Employment and Workplace Relations.

The report cost 440,000 dollars but contained serious errors, including fake legal quotes and references that AI had invented.

This happened because AI sometimes “hallucinates”. It creates false information to fill gaps. The mistakes were later discovered by an academic and made public. Although Deloitte corrected some details and offered a partial refund, the situation caused major embarrassment for both the company and the government.

Experts say this incident shows the risks of using AI without proper human checking. Many businesses use AI, often without managers realizing how much, which makes accuracy a growing concern. The case has become a wake-up call for organizations to use technology responsibly and verify results carefully before presenting them as facts.

Difficult words: hallucinate (to imagine things that are not real), academic (a person who teaches or studies at a university), wake-up call (something that makes people notice a big problem and start to act).

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