AI approvals questioned
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The Tasmanian government’s AI use in economic planning is sparking controversy.
New documents reportedly show that the government relied on Microsoft's AI tool, Copilot, to verify Chambroad’s job projections for its proposed luxury hotel in Hobart.
The Chinese-owned developer’s $65 million, 155-room hotel at Kangaroo Bay was recently granted “major project” status by Planning Minister Felix Ellis, bypassing local council approval.
Ellis claims the project will generate 100 construction jobs and 443 ongoing roles statewide, calling it “a driving force for economic growth”.
The Tasmanian Treasury Department, however, initially challenged the accuracy of Chambroad’s job figures, noting a lack of clarity in the data.
In response, the State Planning Office allegedly used AI to validate the projections, deeming them “reasonable”.
Reports say the AI also reviewed claims of indirect job creation due to visitor expenditure, concluding they were not demonstrably false.
Greens MP Vica Bayley accused the government of “cooking the books”, calling the AI use alarming.
“Schoolteachers wouldn't accept this kind of use of artificial intelligence for homework, and it certainly shouldn't be something that the government is using,” he told reporters.
Independent testing by the Greens found Copilot's responses inconsistent, varying from unverified message board posts to the government’s own press release.
With development stalled since the sale, the local council is pursuing legal action to reclaim the land and is considering challenging the major project status.
Defending the decision, Deputy Premier Guy Barnett said AI methods align with standard practices.
A spokesperson from the Department of Premier and Cabinet has told reporters that AI-based CGE modelling is appropriate for assessing economic benefits, ensuring balanced evaluations.
Chambroad insists its job estimates are accurate and will benefit Hobart’s eastern shore.