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environmental approvals, released in partnership with TechnologyOne, finds that complexity, workforce shortages, and outdated data systems are creating a perfect storm of delays.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.
