AI Just Fooled the Government And It Cost $440,000!

💰 $440,000. Countless fake citations. Dozens of fabricated quotes. And all delivered to the Australian government—without anyone catching the errors.

In this video, we dive into the shocking story of a Deloitte report on Australia’s welfare compliance system that was partially generated by AI—and contained more than twenty completely fabricated references. Court cases that never existed. Books that were made up. Quotes attributed to judges that were entirely false. And yet, this $440,000 report was submitted to guide critical policy decisions affecting vulnerable citizens.

We break down how a law lecturer at Sydney University uncovered the errors, how Deloitte used AI from Microsoft Azure without adequate oversight, and why the partial $97,000 refund raises serious questions about accountability. This isn’t just an expensive mistake—it’s a warning about the limits of AI-generated content, the dangers of relying on machine-created reports for high-stakes decisions, and what it could mean for policy, law, and society in the AI era.

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Disclaimer: This video is based on publicly reported sources and is intended for informational purposes only.