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…
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 The report also used outdated names for Curtin University and included a World Health Organization reference with a ChatGPT metadata tag in its URL.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.
‘Extremely disappointed’: WA government seeks reimbursement from Deloitte over flawed university report
The Guardian AI · 25 October 2026
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