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Western Australia seeks refund from Deloitte over flawed university merger report

The state government says it is pursuing cost recovery from the consultancy after errors were found in a feasibility study it commissioned.

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Illustrative image. Photo: Viet Pham on Unsplash

At a glance

  • Western Australia paid Deloitte $166,000 for a university merger feasibility study
  • The report contained AI-hallucinated references and significant cost errors
  • The government is pursuing expedited cost recovery from the consultancy
  • The study examined merging three major universities in the state

The Western Australian government is seeking expedited reimbursement from Deloitte following the discovery of errors in a report examining a potential merger of three universities. The state paid the consultancy firm $166,000 for the feasibility study on combining the University of Western Australia, Curtin University and Murdoch University.

The government expressed extreme disappointment with the report, which contained AI-generated false references and cost discrepancies totalling hundreds of millions of dollars.

Why it matters

The case highlights concerns about the quality of work produced by major consultancy firms and the risks of AI-generated content in professional reports commissioned by government.

Original reporting

This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.