Deloitte’s $1.6 million Canadian healthcare report flagged for AI errors — weeks after its Australia report scandal
Deloitte has been found to have published a million-dollar report for Canada’s Newfoundland and Labrador provincial government that was allegedly full of errors regarding artificial intelligence (AI), Fortune reported.
This comes just a month after four major utilities were caught using artificial intelligence to help produce a report for the Australian government; This report too later turned out to have multiple errors and he had to partially refund a fee of $4,40,000.
The allegations were first published in the Canadian publication Independent.
Gail Tomblin Murphy, an assistant professor at the School of Nursing at Dalhousie University in Nova Scotia, told the Independent that these findings showed Deloitte was “extensively using AI to produce work.” He was one of the “non-existent” authors in an academic article.
What did Deloitte say?
A spokesperson for Deloitte Canada told Fortune that the firm “stands behind the recommendations made” in the report, adding: “We are revising the report to make a small number of citation corrections that do not impact the report findings. AI was not used to write the report; it was used selectively to support a small number of research citations.”
He added that the Newfoundland and Labrador Department of Health and Community Services and the Premier’s Office did not respond to questions. Additionally, neither of them made a statement regarding the issue.
Deloitte’s report on AI bugs for the Canadian government: What happened?
The government of Canada’s easternmost province commissioned Deloitte to produce a health report worth close to $1.6 million distributed in May 2025. It was stated that the 526-page report has now found that there are various errors potentially related to the use of artificial intelligence.
The Deloitte report advised the state’s health department on a variety of issues, including the impact of the COVID-19 pandemic on healthcare workers, rent incentives and virtual care, Fortune reported. It was stated that the study was initiated due to a shortage of healthcare personnel in the province.
Errors identified included citations to fictional academic papers used to conclude the cost analysis; quotes from articles that have no relevance to the authors; The report also includes quotes from co-authors who have not worked together before.
Deloitte paid Australian government for AI mistakes
In October, Deloitte agreed to partially refund a $4,40,000 fee to the Australian government after admitting it used generative AI to help prepare a report that was later found to contain multiple errors.
The country’s Department of Employment and Workplace Relations (DEWR) had appointed the firm in 2024 to evaluate the targeted compliance framework and supporting IT system that automatically penalizes job seekers who fail to meet mutual liability requirements.
Errors were found after the Australian Financial Review (AFR) uncovered numerous inaccuracies in the document, such as non-existent references and made-up quotes, leading to widespread criticism.
In a later statement, Deloitte also claimed that the use of artificial intelligence did not change the “substantive content, findings or recommendations” of the report.
