Deloitte will refund Australian government for AI hallucination-filled report

Consulting firm quietly admitted to GPT-4o use after fake citations were found in August.

See full article...

 

[justsomebytes]

Yeah, I think there should be an all-new law based on it. Fraud could work, but only for the people who were paying AI for their services. It wouldn't do anything for the people that the AI cited in its output.

Though I think fraud requires intentional deception. I feel like this is more negligent deception (layperson using the word, so don't take that as the actual legal definition of "negligence.") I think these people really do think the AI would produce accurate output, or they would never pay for it and try to pass it off as legit.

The makers of AI, on the other hand, have more than enough evidence to know that any output by their software is likely to have errors. It feels like there's some possibility of making fraud stick there if they know that and still get people to use it.

Fraud, as in common law fraud in the US, could be at play already because it the knowledge requirement generally (which can differ state by state) is Knowledge or Reckless Disregard: "False representations made recklessly and without regard for their truth in order to induce action by another are the equivalent of misrepresentations knowingly and intentionally uttered." Engalla v. Permanente Med. Grp., Inc Which is likely why they paid a refund to attempt to make Australia whole and to be able to point to it in a fraud suit as evidence that they were not trying to be reckless.

From your other post, a common type of damage to allege in defamation suits is reputational harm, and she could likely argue that her name associated with a fraudulent paper is reputationally damaging here in the US. Her higher bar might be showing that it was at least negligence to list her as the author.