The future of nearly 2,000 new Hunter region homes hangs in the balance after revelations that artificial intelligence was used without authorisation to assess development applications.
Unauthorised AI Triggers Major Review
An independent review has been ordered for dozens of Hunter housing projects after a planning official allowed AI software to be used in assessments without formal approval. The scandal affects thousands of homes and apartments that were being fast-tracked by the state government's Housing Delivery Authority.
The Housing Delivery Authority was established in January 2025 with powers to bypass local councils and accelerate selected developments. The authority assesses projects against specific criteria including location advantages and absence of constraints, with affordable housing components receiving favourable consideration.
Major Hunter Developments Affected
Among the prominent Hunter projects caught up in the review are five major developments containing 1,772 new dwellings recommended for fast-track approval. These include:
- Berry Park (913 dwellings)
- 10 Dangar Street, Newcastle (280 dwellings)
- 136 Parry Street, Newcastle (300 dwellings)
- 700 Hunter Street, Newcastle (165 dwellings)
- 47 Darby Street, Newcastle (114 dwellings)
Other significant projects under scrutiny include the proposed 38-storey Wickham development, the Newcastle Exhibition and Convention Centre in King Street, and a medium-density 56-unit building in Nelson Bay.
Pub Redevelopments Also Impacted
Fast-track approval has also been granted for Iris Capital's proposed redevelopment of three Hunter pubs to create 750 dwellings. The affected establishments include:
- Argenton Hotel (300 dwellings)
- Sydney Junction Hotel (272 dwellings)
- Gunyah Hotel (192 dwellings)
The Department of Planning has moved quickly to address the situation, confirming that the unauthorised software was used only to collate publicly-available information and present it in standardised format.
A department spokesperson emphasised that the AI tool was not used to generate recommendations and has not impacted the robustness or accuracy of information provided to the Housing Delivery Authority.
Despite assurances about data accuracy, Planning Minister Paul Scully has taken a cautious approach, requesting an independent review of all developments assessed with the AI tool. The software has been immediately discontinued from use in the assessment process.
The review comes at a critical time for housing delivery in the Hunter region, where more than 20 large residential developments have been put forward to the Housing Delivery Authority since it began operations in February 2025.
Across New South Wales, the authority has assessed 609 projects in 16 meetings since February 7, with approximately 300 recommended for fast-tracking. The outcome of the independent review will determine whether these projects can proceed as planned or face further delays.
