Procurement penalties for AI errors

Updated: 2025.10.06 15D ago 1 sources
Governments can write contracts that require disclosure of AI use and impose refunds or other penalties when AI‑generated hallucinations taint deliverables. This creates incentives for firms to apply rigorous verification and prevents unvetted AI text from entering official records. — It offers a concrete governance tool to align AI adoption with accountability in the public sector.

Sources

Deloitte Issues Refund For Error-Ridden Australian Government Report That Used AI
msmash 2025.10.06 100% relevant
Deloitte will repay the final installment after admitting AI use and erroneous citations in an Australian government review.
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