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Policy & Regulation4 min read

WA government seeks cost recovery from Deloitte over flawed university merger report

The Western Australian government says it is "extremely disappointed" and is pursuing expedited cost recovery from Deloitte after a $166,000 feasibility study on merging three universities was found to contain significant errors. The report examined merger options for the University of Western Australia, Curtin University, and Murdoch University, but included AI-hallucinated references and major…

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Key points

  • WA government paid Deloitte $166,000 for university merger feasibility study
  • Report contains $260m and $311m cost discrepancies plus AI-hallucinated references
  • Government seeks expedited cost recovery; Deloitte to re-issue corrected report

Under a high-cost Curtin-UWA merger scenario, the report calculated total costs of $659 million but wrote $399 million, a $260 million discrepancy. Under a low-cost three-university scenario, the actual total was $512 million but the report stated $823 million, a $311 million discrepancy. The report also used outdated names for Curtin University and included a World Health Organization reference with a ChatGPT metadata tag in its URL. Deloitte admitted using generative AI for research collation, synthesis, and editorial proofing, but initially dismissed errors as minor. The WA government says errors do not affect the modelling or findings, and Deloitte will re-issue the report after review. Murdoch University's vice-chancellor criticised the report and the government's pursuit of the merger.

Full story from The Guardian AI · by Krishani Dhanji and Josh TaylorOpen source ↗

‘Extremely disappointed’: WA government seeks reimbursement from Deloitte over flawed university report

The Guardian AI · 25 October 2026

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This text was published by The Guardian AI and written by Krishani Dhanji and Josh Taylor. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗

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DeloitteGuardian AustraliaChatGPTStephen BartosTony ButiChristian DownieAndrew Deeks

The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.

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