From Corporate Hallucinations to Power Grid Strain

  | Submit tool | Advertise | Tools Published Today |

Wednesday Deep Dive

_{(Reading Time: 4 minutes)}

The Wednesday Deep Dive takes a detailed look at what's new in AI. Each week, we share in-depth insights on new tools, proven prompts, and significant developments—helping tech professionals work smarter and stay ahead.

This week’s stories show how AI’s reach is testing both corporate governance and national infrastructure. One exposes the cost of overreliance on generative tools. The other shows how the energy grid is straining to keep up with the AI boom.

🏢 Deloitte doubles down on AI after refunding a government client for “hallucinated” research

⚡ U.S. power demand hits record highs as AI data centers drive a new energy era

Let’s get into it.

🌐 AI News

🏢 Deloitte’s AI Gamble: Expansion During Embarrassment

Deloitte announced a sweeping AI rollout across its 500,000-person workforce, just as it agreed to refund the Australian government for a report riddled with AI-generated errors.

The report, commissioned by the Department of Employment and Workplace Relations, contained citations to non-existent academic papers and other fabricated details. The firm has since uploaded a corrected version and repaid the final installment of its A$439,000 contract.

The irony? Deloitte’s refund came the same day it unveiled a major partnership with Anthropic to deploy Claude across its global operations. The goal: embed AI assistants into every department, from accounting to software development, and build compliance tools for regulated industries.

💡 Why it matters:

AI can spark productivity, but it can also erode trust if left unchecked. Deloitte’s move signals that the solution isn’t retreat, but governance. The firm is betting that structured oversight and role-specific AI “personas” can prevent future misfires.

Expect more companies to follow this pattern: public stumbles, followed by deeper integration and stricter internal controls. The winners will be those who treat AI governance as a core competency, not a compliance afterthought.

🌐 AI News

⚡ AI’s Energy Appetite Pushes U.S. Power Use to Record Highs

The Energy Information Administration (EIA) projects that U.S. electricity consumption will hit all-time highs in 2025 and 2026, driven largely by AI data centers, cryptocurrency mining, and the electrification of homes and vehicles.

Power demand is expected to climb to 4,191 billion kilowatt-hours in 2025 and 4,305 billion kWh in 2026, up from a record 4,097 billion kWh in 2024. AI workloads are now a measurable factor in national energy forecasts.

Natural gas will still dominate generation, but its share will slip from 42% to 40% as renewables rise to 26% by 2026. Coal will fluctuate, nuclear will dip slightly, and renewables will quietly become the growth engine of the grid.

💡 Why it matters:

AI isn’t just a software story; it’s a hardware and energy story. Every new model, every inference request, every data center expansion adds to the grid’s load. The same companies racing to deploy AI are now negotiating power deals, exploring nuclear partnerships, and rethinking sustainability targets.

For CFOs and operations leaders, this means energy forecasting is no longer a facilities issue; it’s a strategic one. The cost of computing is becoming the cost of electricity.

🧩 The Connection

Deloitte’s refund and the EIA’s forecast tell the same story from different angles: AI is scaling faster than the systems built to contain it. Whether it’s corporate governance or national infrastructure, the challenge is the same: control the growth before it controls you.

The next wave of AI leadership won’t just be about model performance or prompt engineering. It will be about accountability, energy efficiency, and resilience.

Want to Unsubscribe from future emails? Just hit “unsubscribe” below.