The NSW Government’s 2025–26 Budget has earmarked millions for innovation in the housing sector — and artificial intelligence is emerging as a potential fix to one of its biggest bottlenecks: the painfully slow development approval process.
While much attention has gone to the headline $1 billion Pre-sale Finance Guarantee, a quieter shift is happening at the local level, where councils are beginning to trial AI systems like DAISY (Development Application Information System) to speed up planning.
Wingecarribee Shire Council has already gone live with the system, and 20 more councils have applied for grants to adopt it.
Peter Schravemade, Managing Partner of REACH Australia and New Zealand, said AI could help overcome the inefficiencies embedded in government processes.
“Councils are taking ages to do anything, particularly in planning,” he said. “Anything along that line that would help speed up the process would be beneficial, would it not?”
Peter said he understood why adoption might be slow, but believed the potential benefits outweighed the risks if systems were implemented with proper oversight and transparency.
“There’d definitely be a nervousness, like any kind of government department… they’re heavily locked down as far as privacy’s concerned and experimenting with new forms of technology,” he said. “They have risk assessment associated with it; in the case of artificial intelligence, it does actually err. So I’m not sure exactly how compatible that is with a government-based system.”
Despite this, he said AI could still be useful for assisting planners.
“Even if it was to summarise a potential application and give the bones of that to somebody assessing that DA, it would be better than what we’re currently seeing, which is somebody reading it from start to finish.”
The Budget includes $20 million for emerging technology commercialisation and $4 million for new construction methods, through the Housing Innovation Network and Innovation in Construction Fund.
The shift to AI comes amid rising pressure to reform planning systems. Mike Hermon, Executive Director of Development at the Housing Industry Association, said: “All state and territories governments need to implement major reforms now, to stem the tide of unaffordable housing.”
He added: “State, territory and local planning regulations have become so complex they hinder the development of new housing, instead of helping.”
With new tools now available and industry calling for change, AI may no longer be a fringe technology — but a crucial tool to help NSW meet its housing delivery goals.
