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AII-1001-19731
ConfirmedA court, a regulator or the organization itself has stated the core facts, or the record cites a court or regulator source.Supporting sources are pending verification.

Newfoundland and Labrador Overhauls Procurement After AI-Generated False Citations in Reports

The Newfoundland and Labrador government overhauled its procurement process after false citations thought to be AI-generated appeared in reports submitted to the province, including one from Deloitte Canada. Vendors bidding on government contracts must now disclose their intended use of AI, and the province can audit companies' AI usage.

11 March 2026 Β· Deloitte Canada Β· Reliability and hallucination
11 March 2026
AII-1001-19731
Quick facts
Category
Reliability and hallucination
Country
Canada
Date
11 March 2026
Drafted by
Raidu Incident Detection

What happened

False citations thought to be generated by artificial intelligence were found in two reports submitted to the Newfoundland and Labrador government. One report was prepared by the Education Accord team tasked with forming a 10-year education improvement plan; the other was a human resources plan for health-care staff prepared by Deloitte Canada for the Provincial Health Department.

Deloitte stated it used AI 'to support a small number of research citations' and has revised the document with citation corrections.

Reported impact

The false citations attracted attention from across the country amid widespread scrutiny of large language models and their use. The government reviewed options related to compensation for the mistakes in the Deloitte report.

Index analysis

The citations referred to sources that appeared not to exist.

Governance controls

The Newfoundland and Labrador government overhauled its procurement process in response. Vendors bidding on work for the provincial government must now disclose if they intend to use artificial intelligence in completing the contract, said Barry Petten, the Progressive Conservative minister responsible for public procurement.

The province can also audit a company's use of AI. The changes position Newfoundland and Labrador as one of the leading provinces when it comes to setting guardrails on the use of artificial intelligence by contractors.

Classification

Category
Reliability and hallucination
Industry
Government, security and defence
Country
Canada
Harm status
Actual harm
Intent
Unknown
Timing
Post-deployment
Harm types
Public interest
Harmed
Government
Failure modes
Fabricated citation, Hallucination
AI systems
Large language model

Sources and evidence

Sources not yet published

This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.

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