In October 2025, Deloitte Australia agreed to give money back on a government-commissioned report on Australia’s welfare-compliance IT system, produced for the Department of Employment and Workplace Relations. The work was presented as an independent review of a system that automates penalties for welfare recipients who fail to meet certain obligations. Since then, it has become a case study of how generative AI can malfunction when incorporated into formal institutional processes.

The 237-page report…