Questions emerge over consulting firm's $1.6-million report for government on HR plan for healthcare
Newfoundland and Labrador is facing renewed scrutiny over the reliability of its government-commissioned reports after a $1.6-million Health Human Resources Plan contracted to global consulting firm Deloitte was found to contain fabricated academic citations likely generated by artificial intelligence.
According to reporting from The Independent, the 526-page document contains at least four citations to research papers that do not exist. The revelations represent the second instance in as many months where a major government policy report has been undermined by false academic references, following similar discoveries in the province's Education Accord earlier this year.
"Not only is the use of AI on government reports disgusting, but it's undermining the confidence in our government to do the work necessary to address the issues in our healthcare system, and truly throughout the province," said NDP Leader Jim Dinn in a statement.
False citations in HR plan
The false citations in the Health Human Resources Plan were used to support claims related to recruitment strategies, monetary incentives, virtual care, and the impacts of the COVID-19 pandemic on healthcare workers, according to The Independent's investigation.
One citation attributed research on the cost-effectiveness of rural nursing retention to Martha MacLeod, a professor emerita at the University of Northern British Columbia. She told The Independent the citation is "false" and "potentially AI-generated," stating: "Our team certainly has done rural and remote nursing research… but we never did do a cost-effectiveness analysis, nor did we ever have the financial data to do it."
In another case, a team of researchers is cited to back the claim that “Local recruitment is typically the most cost-effective strategy, as it eliminates the need for costly relocation packages, reduces likelihood of turnover, and can reduce recruitment and training costs.”
One of the authors of that supposed paper told The Independent that while she and some of the researchers named have worked on that topic, the paper itself “does not exist.”
According to an access-to-information request obtained and shared by activist Matt Barter, the Newfoundland and Labrador government paid Deloitte $1,598,485 for the Health Human Resources Plan over a two-year period, beginning in March 2023 and concluding in March 2025.
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Deloitte stands by report
In a statement to CBC News, the Department of Health and Community Services confirmed that Deloitte has been asked to review the report's accuracy.
Brian Scott, director of communications for the department, said that Deloitte "has since acknowledged the four citations noted are incorrect; however, they stand by the conclusions and findings in the report."
The department indicated that Deloitte has committed to “expeditiously” conducting a full review of all citations and will report back to government with its findings.
“We look forward to them completing their review so we can assess how serious an issue this is and take the appropriate steps,” said Scott in The Independent.
This is not the first time Deloitte has faced international scrutiny for AI-related errors in government reports. Last month, the firm produced a report for the Australian government that contained fabricated quotes and non-existent academic research, leading to international headlines and a partial refund of US$290,000, according to The Independent's reporting.
Calls intensify for AI regulations
NDP Leader Jim Dinn is pushing for stricter government regulation of artificial intelligence use in policy development.
"We need to implement strict regulations about how our government uses AI," he said in a press statement.
"We are living in a world that is developing fast with AI use on the rise. We need to be proactive and start putting in regulations to not only protect peoples' jobs, but to instill trust in them that the work government is doing is based in real consultation and human interactions, not made-up sources and findings."
Dinn pointed to the Education Accord scandal as evidence of a systemic problem.
"This is not just about the importance of consulting with actual humans in the field we are trying to address issues in – whether it be education or healthcare – but it's about the trust from the public that government is doing the work, not giving taxpayers money to groups who are just running it through AI programs," he stated through his press release.
Dinn has also called for the provincial government to seek a refund from Deloitte, said the CBC, in pointing to the precedent set by the Australian government's partial refund from the consulting firm.
Union leaders, healthcare professionals express alarm
Multiple union leaders and healthcare professionals have voiced serious concerns about the implications of the errors. Yvette Coffey, president of the Registered Nurses' Union of Newfoundland and Labrador, told CBC News that the situation raises alarms about an ongoing core staffing review also being conducted by Deloitte.
"This pattern shows a lack of proper oversight, quality control, and verification," Coffey wrote in a statement. "Credibility matters. Transparency matters. Sound planning matters. The public deserves confidence that decisions affecting our health care system are built on solid information, not shortcuts."
Jerry Earle, president of the Newfoundland and Labrador Association of Public and Private Employees (NAPE), expressed similar concerns to CBC News, noting that the document is meant to be a roadmap for solving human resource management challenges.
"Just with anything, as you cast doubt, as you cast uncertainty, people will start to question the reliability of these documents," he said.
In a separate statement quoted by The Independent, Earle characterized the situation as unacceptable, stating that if a human employee had made this error, "it would likely result in disciplinary action."
