Western Australian Government Demands Deloitte Refund Over Flawed AI-Assisted University Merger Report

The Western Australian government is pursuing reimbursement from consulting firm Deloitte following the discovery of significant errors in a feasibility study regarding the merger of three universities in Perth. The report, which cost the Department of Energy and Economic Diversification AUD 166,000, was found to contain fabricated references and substantial mathematical inaccuracies attributed to the use of artificial intelligence in its preparation.

Public scrutiny revealed that the report included erroneous financial calculations, such as misreporting merger costs and incorrectly citing the statutory name of Curtin University, which had been abandoned over a decade ago. A state government spokesperson expressed disappointment over the oversight and confirmed that Deloitte has been instructed to correct and reissue the flawed document. This incident echoes a previous controversy in 2025, where Deloitte was required to refund the Australian federal government for another inaccurate report, raising concerns about the reliability of automated processes in critical policy assessments.