Deloitte’s $440K AI screw up: Why outsourcing business writing to a bot is a ticking time bomb

Man gasping at his computer

AI writing tools like ChatGPT and Copilot have stormed workplaces everywhere. So chances are, your team now relies on them every hour of every day to draft emails, reports and presentations – without a second thought.

And look, I won’t deny it: AI slays at first impressions. On the surface, it always looks slick. Polished. Professional. It’s no wonder so many people believe it’s miles ahead of anything they could have whipped up alone.

But scratch that surface? The paint peels away. And the cracks start to show.

Sure, we all know that AI can churn out words in milliseconds. But if you want those words to actually work and keep your reputation in tact, they still need your team’s oversight. And – just as critically – yours.

Because AI doesn’t know your business context. It doesn’t understand tone, nuance or risk. And it certainly can’t decipher between fact and fiction. So when your team leans on the technology without the skills and guardrails to back it up, you’re opening the door to serious consequences.

Just ask Deloitte.

When the human filter falls away

Earlier this year, Deloitte delivered a $440,000 government report that included made-up citations, dodgy references and even a fake court quote. Yikes.

The culprit? AI-generated content. Or more accurately, the people who trusted it blindly – and the leaders who didn’t have the foresight to prevent it.

This incident shone a bright, humiliating spotlight on what happens when the human filter fails, and when people underestimate the power and pitfalls of writing with AI. The risks are very real:

  • Reputational damage that can undo years of brand trust overnight
  • Legal and compliance risks when AI fabricates or misleads
  • Financial fallout from fixing costly errors and containing the mess
  • Brand dilution as your distinctive voice gets lost in AI fluff
  • Complacency creep as critical thinking erodes

Deloitte may have made the headlines. But every organisation is already walking that same tightrope: efficiency on one side, exposure on the other.

So why – and how – did this disaster happen?

Controversial or not, I’m just going to say it: the Deloitte staff who produced this dodgy report are not to blame for this screw up. Their leaders are.

Think about it. Why would any professional rely on AI so blindly for such a high value asset? Why did they think it was okay? And how on earth did they think they’d get away with it?

It comes down to two gaping holes in leadership responsibility:

1. A lack of writing confidence among staff: When your people don’t feel confident in their own writing, they’ll naturally lean too heavily on AI. That’s not a sign of laziness. It’s a sign of self-doubt. And it’s incredibly common. So what’s missing? Training. Practice. Feedback. The kind of development that builds real confidence and discernment. And who’s responsible for providing that? Leaders.

2. No guardrails in place: Confident, skilled business writers are a crucial baseline for protecting your brand against Deloitte-like disasters. But it’s not enough. Without clear guardrails – detailed, practical instructions on how to use AI writing tools responsibly – staff can (and will) go rogue. And who’s job is it to establish those boundaries and make sure they’re followed? Again: leaders.

So no, this wasn’t an ‘AI fail’. It wasn’t any one individual’s fail. It was a leadership fail.

AI is useless without the skills and confidence behind the keyboard

Sorry to break it to you: AI doesn’t magically turn anyone into a great writer. But I get why so many people think otherwise. I really do. It’s so easy to fall for the illusion.

But its trick is actually simple: AI makes sloppy writing sound smoother. Errors get buried under polished language. And fluffy logic gets dressed up in perfect grammar. That’s why, without a sharp eye and equally sharp writing skills, your team is handing their reputation (and your brand’s) to a bot.

At its core, effective business writing is about:

  • Knowing your audience
  • Clarity of purpose and message
  • Clear, simple and direct language
  • Critical thinking
  • Strategic framing
  • Accountability for what’s on the page

When your team possess these skills, everything changes. They stop relying on AI to do the thinking for them. And they start steering it instead. Yes, AI can write fast. But it doesn’t write critically. Remember, it’s designed to please us. Which is why your people must have the clarity and confidence to challenge it.

Thanks to AI, the stakes have never been higher

Shameless self-promotion incoming: our Business Writing Essentials course has been giving professionals (and their employers) an edge in the workplace since 2008.

But now? In the age of AI? Sharp business writing skills also safeguard your team’s reputation (and your organisation’s).

Just as importantly though, a strong foundation will also help your people get far better results from AI. With the right training, they will:

  • Boost efficiency with AI without the risk or blowback
  • Get sharper results instead of settling for surface-level output
  • Spot and fix AI’s blind spots before they turn into costly mistakes
  • Keep your brand voice strong, distinctive and human

Obviously, AI isn’t going away. In fact, it’s only going to become even more all-pervasive and powerful. That’s why people who can think clearly, apply judgment and use it intelligently, will be your organisation’s best line of defence – and greatest assets.

But wait, you also need to put the guardrails in place

Even the most skilled, confident writers can only do so much without clear boundaries. That’s where guardrails come in – the practical frameworks that protect your people and your brand.

Because when it comes to AI, ‘use your judgment’ just doesn’t cut it. Every organisation using AI tools should have clear, accessible guidelines that spell out:

  • When and how AI can be used for writing and communication tasks
  • What information must never be shared with AI platforms
  • How to verify and fact-check AI content before it goes anywhere near a client or the public
  • Who’s ultimately accountable for what’s written, approved and sent

Think of them less as policies and more as protection. They keep your team aligned, confident and accountable, while allowing them to harness AI’s strengths responsibly. And the businesses that get this right – skills and structure – will be the ones still standing when everyone else is scrambling to clean up their next $440K mistake.

So before your team hits ‘generate’, ask yourself: Do they have the skills and guardrails to back it up? Will they call the shots – or let AI run the show?

Whether your team’s new to our Business Writing Essentials course or ready for a refresher, now’s the time to sharpen their skills – and help them thrive in the AI era. Get in touch today.