NSW Housing Development Authority largely cleared on shadow AI use

A NSW public servant’s use of a shadow AI tool for Housing Development Authority work is unlikely to have compromised decision integrity, a review suggests.

The Sydney Morning Herald reported late last month that an AI tool was used to “fast-track” hundreds of housing proposals in the state.

The AI tool was not authorised for use as part of the authority’s work, and a review was initiated to determine whether its use had influenced or otherwise impacted planning decisions.

The NSW government published the review [pdf] on Christmas Eve, which found a “low” risk that the AI tool led to errors in planning approvals.

The review stated the tool “appears to be isolated to administrative work”, collating information into reports.

It said that planning decisions on housing projects were subject to additional checks and balances, and expressed confidence that any errors caused by the shadow AI tool would have been picked up, if they occurred.

Some 72 reports that were prepared with assistance from the AI tool were reviewed and found to be error-free.

The review urged the authority to review all remaining reports prepared with the tool, which the opposition has suggested could number in the hundreds.

It also recommended that AI usage guidelines be “reinforced” to staff at the authority, and that they be directed to use official, sanctioned tools.

This was not just for security and integrity purposes; the existing tools were assessed to be more effective than the shadow IT tool at doing the same administrative work.

Minister for Planning and Public Spaces Paul Scully accepted the review recommendations.

“The independent review shows the integrity of the Housing Development Authority and its statutory decision-making processes has not been compromised,” he said in a statement.

“All necessary steps will be taken to support the continued function of the Housing Development Authority.”