Why A.I. Creates the Illusion of Courage—and the Risk of Reputational Ruin |
From Deloitte’s reputational stumble to agentic A.I., speed is rising while deliberation is disappearing. Unsplash
In Shakespeare’s Othello, published in 1604, the villain Iago delivers a stark reminder about what people must always truly own: “Good name in man and woman … is the immediate jewel of their souls.” And when that “good name” is filched (or taken), he adds, it “makes me poor indeed.” Four hundred years later, the value of a good name hasn’t changed. Reputation remains one of the most valuable and fragile assets any person or institution, large or small, can possess. Deloitte Australia learned this the hard way.
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See all of our newslettersIn an “independent assurance review” commissioned by Australia’s Department of Employment and Workplace Relations, Deloitte delivered a report that was later found to contain fabricated references and citations. Deloitte acknowledged it had used generative A.I. to assist with drafting. But whatever “human review” existed clearly failed at the most basic of professional duties: checking the work and verifying sources before submitting the final product to a client.
The consequences were swift and reputationally expensive. The report was corrected and reissued, and Deloitte agreed to repay part of its fee. It’s tempting to frame this as a simple story about “A.I. hallucinations” and sloppy quality control. But that interpretation misses the deeper point. This wasn’t merely a failure of technology. It was a failure........