Fact, fiction, and AI: Managing Deloitte’s generative AI fallout
May 19, 2026
Abstract
This management discussion note examines the communication, reputational, and governance crisis faced by Deloitte Australia following a government assurance review that found fabricated citations and unverifiable references linked to the use of generative AI tools. The paper explores how even highly experienced consultants and elite professional firms can become vulnerable to automation bias, speed pressures, and overreliance on machine-generated authority without sufficient verification. The discussion raises broader questions about professional writing in the age of AI, the erosion of critical scrutiny in knowledge-intensive work, and the risks such failures pose to institutional trust and public credibility. It also highlights the importance of credible communication responses in restoring confidence after high-profile professional failures.
Keywords: Generative AI, AI hallucinations, professional communication, consulting ethics, reputational risk, crisis communication, strategic communication, professional writing, AI governance, public-sector consulting, epistemic trust, automation bias
Suggested Citation:
Dwivedi, V. (2026). Fact, fiction, and AI: Managing Deloitte’s generative AI fallout. SPJIMR Paper Series, MDN-2026-01. S.P. Jain Institute of Management & Research.
Download PDF Preview PDF
Disclaimer: The SPJIMR Paper Series provides a platform for hosting and disseminating research outputs. The views, opinions, findings, interpretations, and conclusions expressed in these papers are solely those of the respective author(s). They should not be construed as representing the views, endorsement, or official position of SPJIMR.
