When AI hallucinates and accountants pay the price

Deloitte’s $290K refund is a wake-up call: AI needs governance, not blind trust.

It’s been a while since we launched Above Trends, Beyond Insights. What started as an experiment in rethinking our editorial voice has now become a steady practice: every issue, we scan the signals that matter and translate them into business insight. Our commitment remains the same (less noise, more signal), with an even stronger focus on what executives need to navigate uncertainty: timely context, curated trends, and practical guidance.

The Deloitte incident: when AI meets accountability

In October 2025, Deloitte found itself in an unusual position: reimbursing the Australian government nearly $290,000 after delivering a report riddled with AI-generated hallucinations and fabricated citations. The case instantly reignited a crucial debate about the responsible use of generative technologies in professional services.

In a world where consultants and auditors are increasingly relying on AI to process data, summarize research and even draft deliverables, the boundary between automation and authorship becomes blurred.

What happened in Canberra exposes a governance vacuum that extends far beyond one firm: it reveals how many organizations still lack clear frameworks for human oversight, traceability, and ethical accountability when deploying AI at scale. The allure of efficiency often eclipses the necessity of verification. Yet, without methodological rigor (source validation, human review, disclosure of AI involvement) trust becomes collateral damage.

For business leaders, this episode is more than a PR embarrassment. It is a signal that AI literacy and governance must become board-level priorities.
Companies that treat AI as a “co-pilot” without a flight plan risk legal, reputational and even societal turbulence. 

TREND TRACKER

Carbon-aware computing and the rise of sustainable cloud

The environmental cost of computing is becoming impossible to ignore. As hyperscale data centers proliferate across continents, their electricity and water consumption are drawing scrutiny from regulators and investors alike. Carbon-aware computing is emerging as a pragmatic response: systems that schedule workloads based on the real-time carbon intensity of available energy sources, automatically shifting tasks to greener grids or off-peak hours.

Major cloud providers have begun integrating these capabilities into their platforms, allowing companies to optimize not just for latency and cost, but also for environmental impact. For organizations pursuing ESG-aligned digital transformation, this is a turning point. Sustainability is a measurable performance metric that can influence market perception and access to green financing.

Forward-looking IT leaders are now adopting hybrid strategies that include:

  • monitoring carbon intensity per workload,

  • integrating carbon APIs into orchestration layers,

  • and re-evaluating data center locations based on renewable-energy availability.

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QUICK INSIGHT

Building tech supply-chain resilience

Semiconductor bottlenecks and export controls have shown how fragile global tech supply chains can be. Resilience now means strategic visibility and diversification across sourcing, manufacturing and logistics, with governance that anticipates shocks rather than merely absorbing them.

  • Map dependencies: inventory single-source chips, substrates, networking gear and rare-earth inputs; rank by business criticality and lead time.

  • Dual-source with intent: develop alternatives in different regions; leverage EU programs where feasible; pre-negotiate surge capacity.

  • Invest in transparency: adopt digital twins or ledger-backed traceability to surface tier-2/3 risks and ESG exposures in near real time.

  • Collaborate upstream: co-design roadmaps with key suppliers (yield, quality, sustainability), and align buffers to shared risk scenarios.

  • Scenario planning: run geopolitical, regulatory and climate-risk simulations; tie outcomes to procurement playbooks and inventory policies.

WHO IS BABINI MAZZARI

Our Value Proposition

Babini Mazzari is the strategic IT partner for European companies looking to navigate digital transformation in a structured, pragmatic, and sustainable way.
We don’t just deliver technical solutions - we work as an extension of your internal team, helping you integrate systems, optimize processes, and lead change with clarity and competence.

Our approach is built on listening, transparency, and a strong results-driven culture. Whether you're scaling, modernizing, or rethinking your operating model, we support every client with the right tools, clear methodology, and long-term vision.
Above Technology. Beyond Solutions.