Amid mounting construction delays and ballooning development backlogs, councils in New South Wales (NSW) are exploring artificial intelligence (AI) as a potential solution. The NSW government has initiated a program offering town planners access to advanced AI tools, aiming to streamline the approvals process and alleviate delays.
The average time for determining development applications in NSW has significantly increased, reaching 107 days in the 2023/24 financial year compared to 83 days in the previous year. Inner-city councils and regional areas have experienced even longer waiting times, with delays stretching beyond 195 days in certain regions.
Builders have reported year-long delays on individual projects, hindering the delivery of new homes and escalating costs. At a Property Council event, NSW Planning Minister Paul Scully was warned that meeting housing supply needs would be challenging without immediate adoption of AI technology.
The NSW Department of Planning's $5.6 million AI program aims to revolutionize the development process by deploying AI to quickly scan applications, identify discrepancies with planning guidelines, and improve application quality before review by town planners. Councils have shown keen interest in the program, seeking to address backlogs and expedite approvals.
Wagga Wagga City Council, facing concerns of a residential construction slowdown, has sought involvement in the AI program. Councilor Richard Foley highlighted absurd delays in obtaining permissions for various projects, emphasizing the transformative potential of AI in addressing backlogs.
Developer Manuel Donebus expressed frustration over delays causing projects to collapse, hindering the city's growth ambitions. The state government has engaged with nearly half of NSW's councils through workshops on the AI program and expects to commence proposal reviews in February.
The AI initiative holds promise as a strategic intervention to streamline development processes, reduce delays, and facilitate urban development, ultimately supporting NSW's housing and population growth targets.
