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KPMG fines partner for using AI in internal AI exam

Partner fined A$10,000 after uploading training material to AI tool

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AUSTRALIA: According to an Australian Financial Review report, a partner at KPMG Australia has been fined A$10,000 ($7,000) for using artificial intelligence tools to cheat on an internal training exam focused on AI itself, underscoring the growing challenges professional services firms face as staff adopt the technology.

The unnamed partner was required to retake the assessment after uploading training material into an AI platform to generate answers. KPMG said more than two dozen employees had been caught misusing AI in internal exams during the current financial year.

KPMG Australia chief executive Andrew Yates, said the firm was struggling to keep pace with the rapid uptake of AI. “Given the everyday use of these tools, some people breach our policy. We take it seriously when they do,” he said, adding that the firm was reviewing safeguards under its self-reporting regime.

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The incident adds to broader concerns across the accounting profession. The Association of Chartered Certified Accountants last year scrapped remote examinations, citing the growing sophistication of cheating systems. All four Big Four firms have faced penalties linked to cheating scandals across multiple jurisdictions in recent years.

KPMG said it has adopted measures to detect AI misuse and will disclose the number of breaches in its annual results. 

The case surfaced during a Senate inquiry into industry governance, where Greens senator Barbara Pocock criticised the lack of tougher consequences. Australia’s corporate regulator, the Australian Securities and Investments Commission, said it would not intervene unless disciplinary proceedings were initiated by the profession’s trade bodies.

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AI Impact Summit Day 2: India tells big tech to respect constitution amid tougher content rules

Vaishnaw says YouTube, Meta, X and Netflix must follow Indian law

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Ashwini Vaishnaw

NEW DELHI: India’s information technology minister Ashwini Vaishnaw has warned global technology platforms that they must operate within the country’s constitutional framework, days after New Delhi tightened rules on content takedowns.

Speaking on the sidelines of the India AI Impact Summit in New Delhi on Tuesday, Vaishnaw said multinational platforms needed to be mindful of India’s cultural and legal context.

“It’s very important for multinationals to understand the cultural context of the country in which they are operating,” Vaishnaw told reporters.

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Last week, India reduced the time allowed for social media companies to remove unlawful content to three hours from 36 hours after notification, raising compliance pressure on platforms including YouTube, Meta, X and Netflix.

Vaishnaw also called for much stronger regulation of deepfakes, saying the government had already begun discussions with the industry on the issue.

India’s move comes amid mounting global pressure on social media firms to police content more aggressively. Regulators from Europe to Latin America have pushed for faster takedowns and greater accountability for harmful and illegal material.

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On Tuesday, Spain ordered prosecutors to investigate platforms including X, Meta and TikTok over allegations that AI-generated child sexual abuse material had circulated on their services, underscoring the growing regulatory focus on artificial intelligence-driven content.

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