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Newfoundland and Labrador overhauls procurement after report errors thought to be AI

Newfoundland and Labrador now requires AI use disclosure in contracts and reserves audit rights after false citations were found in government reports, setting a procurement precedent.

  • Vendors bidding on provincial contracts must now disclose AI use, as Newfoundland and Labrador government announced on March 11, 2026, said Barry Petten.
  • A review of past contracts found citations that appeared not to exist, including in the 2023 Deloitte contract which lacked AI provisions and cost about $1.6 million, prompting procurement reforms.
  • Petten said 'We may investigate, approve, deny or modify a vendor's and intended use of AI' to close procurement loopholes, experts say reports should improve, involving more interviews and clearer methodology.
  • Jennifer Konieczny said the provincial Health Department is reviewing compensation options, and the new criteria position Newfoundland and Labrador as a leader on AI guardrails among provinces.
  • In the wider Canadian context, Deloitte told The Canadian Press it used AI minimally and revised citations, while provinces like Alberta, Saskatchewan, and Nova Scotia require AI transparency in procurement.
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Newfoundland and Labrador overhauls procurement after report errors thought to be AI

The Newfoundland and Labrador government has overhauled its process for awarding contracts after false citations thought to be generated by artificial intelligence turned up in two reports, including one prepared by Deloitte Canada.

·Canada
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The Hamilton Spectator broke the news in Hamilton, Canada on Wednesday, March 11, 2026.
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