AI used to award proposed hotel complex major project status
The Clarence City Council is contemplating legal action against the Tasmanian Government following the revelation that artificial intelligence (AI) played a role in approving the Kangaroo Bay development as a major project.
Last week, the proposed hotel complex on Hobart's eastern shore was granted major project status after the developer, Chambroad, submitted revised economic impact figures.
A document tabled in Parliament revealed that Treasury had expressed concerns regarding the job creation numbers included in the developer's updated application.
“As the MPP (major project proposal) provides no information on the methodology or data sourced to support the proponent’s estimates of the jobs created in the construction and operational phases of the project, the veracity of these estimates cannot be tested,” Treasury said.
The Department of Premier and Cabinet (DPAC) noted that Microsoft Copilot was used. DPAC hoped the declaration would allay fears.
“Utilising artificial intelligence, the State Planning Office obtained data suggesting that the estimates of 100 full-time equivalent (FTE) construction jobs and 100-150 direct hotel jobs are reasonable, given the 4.5-star rating of the proposed facility,” DPAC said.
“The proponent’s estimate of 293 indirect jobs arising from added visitor expenditure cannot be proven to be incorrect or unreasonable.”
According to Deputy Premier Guy Barnett the use of AI ‘isn’t unusual’.
“We make no apology for putting this project on the table, supporting the project to go through the normal planning and approval process,” he said.
“And we’re very excited about the possibilities to create more jobs, grow the developments on the eastern shore of Hobart and particularly with respect to tourism, education, retail, building and construction sectors.”
Clarence Mayor Brendan Blomeley pushed back saying use of AI in awarding major project status “doesn’t pass the pub test”.
“This is extraordinary. How can the Minister award major project status when the submission is not based on demonstrable facts and evidence,” he said.
“The idea that if something can’t be disproven then it is true, is incredibly dangerous, as is the ‘near enough is good enough’ approach of the State Planning Office.”
“DPAC and the State Planning Office received expert economic advice from the Department of Treasury and Finance, but they didn’t like the answer they received.”
“Instead, they used AI to try and validate Chambroad’s claimed job creation statistics. That should tell you all you need to know about the merits of this proposal.”
“Be assured, council will buy back the land and return it to public ownership.”
Residents are concerned about the impact on the waterfront.
Jonathan Jackson, 22nd October 2024
