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The Tasmanian government used artificial intelligence (AI) to validate a developer’s claim about the economic benefits of a contentious luxury hotel planned for Hobart, new documents reveal.
Chinese-owned company Chambroad wants to build the $65 million, 155-room hotel on prime real estate at Kangaroo Bay, on the eastern shore of the River Derwent.
Last year, the company applied to the state government for its proposal to be declared as a major project, which would bypass the approval process of the local council.
The Kangaroo Bay proposal has been in the pipeline since 2017. (ABC News: Jano Gibson)
The company’s initial bid for major project status was rejected by former planning minister Michael Ferguson a year ago.
But, last week, its second attempt secured the support of current Planning Minister Felix Ellis, who noted the hotel would create 100 construction jobs and 443 ongoing positions across the state.
“Developments like the Kangaroo Bay Hotel are driving forces for economic growth, job creation, and progress,” Mr Ellis said in a statement at the time.
But a report tabled in parliament last week shows the accuracy of the proponent’s job estimates were initially queried by the Department of Treasury and Finance (DTF).
“As the [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,” DTF stated.
In response, the Department of Premier and Cabinet’s State Planning Office said in the report that it had deemed the job numbers “reasonable” after using Microsoft’s Copilot AI assistant.
“Utilising artificial intelligence (Copilot), 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,” it stated.
It also said the proponent’s estimate of a further 293 indirect jobs arising from added visitor expenditure “cannot be proven to be incorrect or unreasonable”.
Greens condemn ‘deeply concerning’ use of AI
Greens MP Vica Bayley accused the government of “cooking the books” to get the proposal assessed by a panel appointed by the Planning Commission, rather than by the Clarence City Council.
“This is an alarming use of a new technology,” Mr Bayley said.
“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.”
Vica Bayley has accused the government of “cooking the books”. (ABC News: Maren Preuss)
Mr Bayley said the process undermined the credibility of the major project declaration.
“When you have the Treasury on one hand questioning the credibility of the jobs figures, and the government cooking the books on the other using artificial intelligence, it begs serious questions.”
To test the quality of Copilot’s answers, the Greens submitted several enquiries of their own into the AI assistant.
Copilot initially based its answers about job creation estimates on message board posts, the Greens said.
The Department of Premier and Cabinet’s State Planning Office says it deemed the job estimates “reasonable” after using an artificial intelligence tool. (ABC News: Ebony ten Broeke)
Later, the AI assistant based its answers on the government’s press release about the hotel project.
On Microsoft’s website, it says Copilot can make mistakes because the third-party information it relies on is not always accurate.
“Copilot may misrepresent the information it finds, and you may see responses that sound convincing but are incomplete, inaccurate, or inappropriate,” it states.
“Use your judgement and double check facts before making decisions or taking action based on Copilot’s responses.”
Mr Bayley said: “It is deeply concerning that a government department like the Planning Office would use artificial intelligence to counter Treasury’s advice.”
Chambroad bought the land at Kangaroo Bay from the Clarence City Council, but the council is now involved in court action to try and buy back the land. (Supplied: Chambroad Australia)
‘Like an episode out of Utopia’: Mayor
The Kangaroo Bay hotel has been in the pipeline since 2017, when the Clarence City Council sold the land to Chambroad.
But a lack of progress to develop the site over subsequent years prompted the council to launch court action last year to try to buy back the land.
That case is still before the court.
But Mayor Brendan Blomeley said the council was now considering further legal action regarding the declaration of major project status.
“This is highly irregular and suspect to say the least, and, frankly, it just does not pass the pub test,” Cr Blomeley said.
“This is, it would seem, like an episode out of [the satirical TV series] Utopia.
“We are exploring all legal avenues, including the use of AI.”
Chambroad’s proposal has attracted some community opposition. (Facebook: Alderman Beth Warren)
When asked about the appropriateness of using AI, Deputy Premier Guy Barnett said it was “not unusual to use those particular methods” … and that they were “in accordance with normal practice”.
“We support the opportunity for development, growth and jobs,” Mr Barnett said.
“And this is one of those opportunities that we are backing in through the normal process, independent assessment, and community consultation all the way through.”
A Department of Premier and Cabinet spokesperson said it was “entirely appropriate and normal for proponents and agencies to use CGE (Computable general equilibrium) modelling to estimate the economic benefits of a proposal”.
“The State Planning Office used a suite of information sources and economic modelling to analyse and review the proposal, including advice sought from relevant experts within other state government agencies.
“Understanding the job creation opportunities from the project is just one element considered in determining eligibility of the project.”
The spokesperson also said the government had “developed guidance for the use of artificial intelligence”.
“The actions of the State Planning Office fall in line with these guidelines,” they said.
Last week, Chambroad insisted its job estimates for the project were accurate.
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