Subscribe to Newsletter and Print Magazine

Build Australia: A construction Magazine logo

  • News
  • Projects
  • Trending
  • Events
  • Business Insight
  • Online Magazine
  • Advertise
  • Contact
Home
  • News
  • Projects
  • Trending
  • Events
  • Business Insight
  • Online Magazine
  • Advertise
  • Contact
  • Australia’s steel future hinges on containing energy costs

AI could help unlock $278B construction bottleneck, CEDA finds

06 May, 2026
AI data centres strain global supply chains



Australia’s AU$278 billion construction pipeline is under threat from a slow and fragmented environmental approvals system but AI can help solve the bottleneck, according to a new report from the Committee for Economic Development of Australia (CEDA).

The report, Approved: How AI and data can transform Australia’s environmental approvals, released in partnership with TechnologyOne, finds that complexity, workforce shortages, and outdated data systems are creating a perfect storm of delays.

With applications often running to thousands of pages and requiring compliance with dozens of separate laws, the current system is struggling to keep pace with national needs.

“Australia has a massive pipeline of projects that depend on timely approvals,” said CEDA Head of Economics Liam Dillon.

“If we can’t assess projects efficiently and effectively, we risk delaying the homes, infrastructure and energy systems the country needs.

“Regulatory and legislative changes will address some of the challenges, but better use of AI and data can help us go further.”

The report highlights international success stories, such as Denmark, where AI-powered tools help regulators navigate past decisions, saving approximately AU$80 million annually, nearly double the Australian government’s recent funding pledge of AU$45 million.

“AI won’t replace human judgement, nor should it,” Dillon said.

“But it can help decision-makers navigate complexity, reduce duplication, and focus their expertise where it matters most.”

However, the path to a high-tech approvals process faces significant hurdles. CEDA found that only 12 per cent of public servants feel equipped to use AI tools. Furthermore, many government systems are legacy platforms not designed for modern data sharing.

“Australia is at a turning point. The shift from IT to AI is the most significant economic transformation of our lifetime, and the decisions governments make now about where their technology comes from will determine whether Australia shapes its own future or has it shaped by others,” said Ed Chung, TechnologyOne CEO and Managing Director.

CEDA is now calling for a coordinated national reform strategy, including the establishment of a dedicated environmental approvals innovation taskforce.

By standardising data sharing and adopting AI, proponents argue the system can become not just faster, but more transparent for the communities affected by major developments.

“Bringing approvals reform and AI together is a rare opportunity to make the system fundamentally better for industry and the environment alike,” Dillon concluded.

Share this story

  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook

Related Articles

Construction Technology Leaders Summit

Construction Technology Leaders Summit

Moscow construction fire kills seven workers

Moscow building fire kills seven construction workers

Barangaroo Cutaway becomes major cultural venue

Finalised Barangaroo Cutaway becomes major cultural venue

Melbourne Airport Rail project moves forward

Melbourne Airport Rail project moves forward with consortia shortlist

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

Breaking

  • News
  • Projects
  • Trending
08 May

State NCC variations add to building industry’s costs

08 May

WA increases housing budget for affordable housing

07 May

NSW introduces building reforms for modern methods of construction

07 May

Western Australia invests in prefabricated construction to boost housing supply

06 May

AI could help unlock $278B construction bottleneck, CEDA finds

06 May

Cascadia masterplan supports Calderwood’s growth and demand

04 May

WA budget allocates $3m to Fremantle Prison conservation

01 May

WeAreLiving Preston adds 292 new build-to-rent homes

01 May

IRT secures approval for Woonona seniors’ living redevelopment

01 May

Powerhouse Parramatta set for 2026 opening

21 Apr

A step‑by‑step guide for managing water on construction sites

20 Apr

Crisis tips for when media misidentifies the ‘bad guys’

16 Apr

Predictive modelling tools boost building performance in future climates

16 Apr

Water ingress a national problem that needs the right policy settings

15 Apr

Preconstruction planning for equipment screens avoids costly design changes

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe Newsletter and Print Magazine
  • Queensland transport

Associations

Our Titles

  • Share on Newsletter
  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook
  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2026 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required