Key takeaways
A Canadian provincial government has ordered consulting giant Deloitte to review a $1.6 million healthcare workforce report after investigations revealed it contains multiple false academic citations likely generated by artificial intelligence.
The 526-page Health Human Resources Plan, published by Newfoundland and Labrador's Department of Health and Community Services in May 2025, was commissioned to guide the province's healthcare staffing strategy over the next decade.
The Independent, a Canadian news outlet, uncovered at least four citations that reference non-existent academic papers, misattributed real researchers to studies they never worked on, and even listed fictional papers allegedly co-authored by researchers who said they had never collaborated.
Academic credibility called into question
Gail Tomblin Murphy, an adjunct professor in the School of Nursing at Dalhousie University, was listed as a co-author on a paper titled "The cost-effectiveness of local recruitment and retention strategies for health workers in Canada."
Murphy confirmed to The Independent that while she has worked on similar topics, the paper itself "does not exist." She said she had worked with only three of the six other authors named in the false citation.
"It sounds like if you're coming up with things like this, they may be pretty heavily using AI to generate work," Murphy said.
"And I definitely think that there are many challenges with that. We have to be very careful to make sure that the evidence that's informing reports [is] the best evidence, that it's validated evidence. And that, at the end of the day, these reports—not just because they cost governments and they cost the public—[are] accurate and evidence-informed and helpful to move things forward."
The report also cited an article allegedly published in the Canadian Journal of Respiratory Therapy that cannot be found in the journal's database.
These fabricated sources were used to conclude cost-effectiveness analyses regarding virtual care, retention incentives, and the impacts of the COVID-19 pandemic on healthcare workers during a period of significant nurse and doctor shortages in the province.
Deloitte stands by findings despite errors
In a statement to Fortune, a Deloitte Canada spokesperson defended the firm's work while acknowledging the citation problems.
"Deloitte Canada firmly stands behind the recommendations put forward in our report," the spokesperson said. "We are revising the report to make a small number of citation corrections, which do not impact the report findings. AI was not used to write the report; it was selectively used to support a small number of research citations."
According to access-to-information requests, Newfoundland and Labrador paid Deloitte Management Services LP $1,598,485 for the plan in eight installments over two years, with the first payment dated March 2023 and the final payment in March 2025.
Brian Scott, director of communications for the Department of Health and Community Services, confirmed the department has asked Deloitte to conduct a full review of all citations in the report.
"Deloitte has committed to expeditiously conducting a full review of all the citations and will be required to report back to the government with its findings," Scott said. "We look forward to them completing their review so we can assess how serious an issue this is and take the appropriate steps."
Pattern of AI misuse raises concerns
The revelation comes just weeks after Deloitte's Australian member firm was required to refund the government following a similar incident.
In October 2025, Deloitte agreed to partially refund Australia's Department of Employment and Workplace Relations for a $290,000 report that contained AI-generated errors, including references to non-existent academic papers and a fabricated quote from a federal court judgment.
Chris Rudge, a Sydney University researcher of health and welfare law, first alerted media outlets that the Australian report was "full of fabricated references."
The revised version of that report, quietly uploaded to the Australian government's website, included a disclosure that Deloitte had used the generative AI language system Azure OpenAI to help create the document.
Senator Barbara Pocock, the Australian Greens party's spokesperson on the public sector, criticized Deloitte's handling of the Australian report.
"Deloitte misused AI and used it very inappropriately: misquoted a judge, used references that are non-existent," Pocock told Australian Broadcasting Corp. "I mean, the kinds of things that a first-year university student would be in deep trouble for."
Calls for accountability and oversight
Union leaders in Newfoundland and Labrador have expressed serious concerns about the errors, particularly as Deloitte was chosen in June 2025 to conduct an additional core staffing review of nursing resources in the province, expected to be completed in spring 2026.
Yvette Coffey, president of the Registered Nurses' Union of Newfoundland and Labrador, called the situation troubling.
"This pattern shows a lack of proper oversight, quality control, and verification. It cannot continue because decisions about health-care staffing must be grounded in reliable information," Coffey wrote in a statement. She added that the poor use of AI can mislead decision-making on critical issues.
Jerry Earle, president of the Newfoundland and Labrador Association of Public and Private Employees (NAPE), said the errors undermine trust in the document.
"Just with anything, as you cast doubt, as you cast uncertainty, people will start to question the reliability of these documents," he said. Even though only four citations have been confirmed as incorrect so far, Earle noted it casts doubt on the overall document and its recommendations.
NDP Leader Jim Dinn called for the province to seek a refund from Deloitte, pointing to the Australian case as precedent.
"To me, I would have little confidence in this report and I would definitely be looking for a refund," Dinn told Radio-Canada.
As of late November 2025, the Health Human Resources Plan remains available on the Newfoundland and Labrador government's website with no disclosure of AI use.
Premier Tony Wakeham, who was sworn into office in late October, and Health Minister Lela Evans have not publicly addressed the scandal.
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