India, Oct. 24 -- In October 2025, the Australian government asked global think tank Deloitte to refund nearly 3,00,000 Australian dollars because a report that the former commissioned had fabricated citations and references that were created by generative Artificial Intelligence (AI). Media reports indicate that the consultancy firm relied on AI tools to speed up drafting. Instead, the tools produced fictional case laws and arguments. This is not an isolated case of a phenomenon dubbed by the experts as the AI delusions and hallucinations.

Since mid-2023, there are nearly 100 instances of AI-related hallucinations that were documented in the US court filings, according to a media report in June 2025. A New York law firm paid $5,000 for ...