NSW DPHI searches for AI solutions panel

The NSW Department of Planning, Housing and Infrastructure (DPHI) is seeking IT partners for a new Artificial Intelligence Solutions Panel to help NSW councils automate the processing of development applications (DAs).

The request for tender published on 14 February 2024 describes AI tools and AI-enabling systems as “an opportunity for planners to refocus their resources and energy towards improving the human-centred aspects of their practice.”

The department is investigating AI and digital solutions that can support and enhance the local DA processes, that could “guide and inform applicants through the application process so that they are confident that they are doing the right thing.”

The department also wants to “improve the quality of applications submitted by applicants to enable measurable efficiency gains for council assessment staff.”

The primary focus is the pre-lodgement stage.

It is seeking to improve council processes to help the state align with the federal government's National Housing Accord.

Announced in October 2022, the Accord requires all levels of government, institutional investors and the construction sector to align with a shared ambition to increase housing supply and affordability. 

A new planning law that requires DAs to be assessed within 40 days has been a point of contention between the NSW government and councils.

Average local development assessment timeframes increased from 83 days in the 2022 financial year to 105 days in the 2023 financial year – an increase of 27 per cent. 

The NSW government has been warned it has a "zero per cent" of meeting housing supply targets without immediate adoption of AI technology.

"An innovative and collaborative approach is critical to enabling new dwelling supply in NSW in the coming years, recognising that councils are responsible for determining 85 per cent of all dwellings in NSW," the tender stated.

"To achieve this, the department is establishing a panel of AI and digital solution providers.
This panel will serve as a centralised resource accessible to NSW councils seeking to
implement innovative solutions tailored to their unique needs."

AI solutions to target four use cases

Solutions offered by panel members will need to address four priority use cases, which DPHI co-designed with councils by identifying pain points in existing processes. Those use cases are:

• Use case 1: A pathways and requirements finder to help applicants identify site specific development requirements to expedite the development process.
  
  
• Use case 2: A material self-assessment health check to help applicants identify and address any issues with their application prior to lodgement.
  
  
• Use case 3: A risk-based triage process to help councils quickly identify non-compliant elements within applications.
  
  
• Use case 4: A material assurance process to help councils verify an applicant's supplied documentation.

Proposed solutions will need to consider the needs of one-off home builders, aspirational developers, “frequent flyer developers”, consultant planning experts, resource constrained council staff and technical subject matter experts.

Successful tender respondents will commence solution supply in April 2024 and will be required to present at technology product showcase in April or May 2024.

The request for tender will close on 11 March 2024.

DPHI worked with councils on AI solutions

Over 30 NSW councils have taken part in DPHI workshops to identify existing AI products and pain points with current DA processes.

Port Stephens Council and Wagga Wagga City Council are among the first councils to investigate the potential of AI.

“For most of the regular clients they understand what needs to happen, however for occasional developers who might do it once or twice in their lifetime it's very confusing and having an AI presence can help step them through it,” Wagga Wagga Council Manager for Development Assessment & Building Certification Paul O'Brien said.