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The $11 Million Question: Why the Feds Are Sticking With Deloitte for AI Advice Despite Past Missteps

  • Nishadil
  • December 19, 2025
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  • 3 minutes read
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The $11 Million Question: Why the Feds Are Sticking With Deloitte for AI Advice Despite Past Missteps

Feds Under Fire for $11 Million AI Contract with Deloitte, Firm That Admitted Past Errors

The Canadian federal government is defending an $11 million contract awarded to Deloitte for AI advisory services, sparking controversy given the consulting giant's recent admission of significant errors in previous federal projects.

Well, here we are again, grappling with a spending decision that has more than a few folks scratching their heads. The federal government, specifically Public Services and Procurement Canada (PSPC), is currently standing firm on its decision to award an $11 million contract to Deloitte for advice on artificial intelligence. Now, on the surface, future-proofing with AI sounds smart, right? But here’s the kicker: this is the same Deloitte that just a few months prior, in October 2023, publicly admitted to making significant errors in a previous, high-profile federal contract. You can imagine the uproar.

It's a classic "déjà vu all over again" moment for Canadian taxpayers, who are no strangers to costly federal projects that don't quite hit the mark. The contract, inked in March 2023, tasks Deloitte with providing a deep dive into the burgeoning world of AI, offering guidance on how the government can best leverage this technology, understand its potential pitfalls, and, crucially, protect Canadians’ precious data. Government officials are quick to point out that this isn't just about throwing money at a trendy buzzword; it's about navigating a complex, rapidly evolving landscape safely and effectively.

When pressed on the matter, federal representatives have been pretty consistent in their defense. They argue that this new contract is fundamentally different from the previous work where Deloitte stumbled. They emphasize that the selection process for AI expertise was rigorous and that Deloitte, despite its past issues, still possesses a unique skill set deemed necessary for this particular advisory role. The underlying message? We need the best minds on this, and according to their process, Deloitte fit the bill.

However, that explanation hasn't exactly quelled the skepticism, especially from opposition parties. They're understandably questioning the government's judgment and commitment to accountability. Why, they ask, would you award such a substantial new contract to a firm that has openly acknowledged its shortcomings in past dealings with the federal administration? It raises serious concerns about value for money and whether lessons are truly being learned from past mistakes. It feels a bit like trusting the same chef who famously burnt your last dinner to cater your next big event.

The core of the debate, really, boils down to trust and transparency. While the government insists it's looking forward, planning for the future of AI in public service, many are stuck looking backward, demanding accountability for past failures. The reality is, managing sensitive data with AI is a monumental task, one that absolutely requires top-tier expertise. But for Canadians, the lingering question remains: at what cost, and with whom can we truly afford to take that risk?

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