San Jose pilots AI to fix 90% dwelling unit permit rejection rate

San Jose has announced a new AI pilot program launching this fall to streamline the building permitting process for accessory dwelling units (ADUs), targeting the state’s ongoing housing crisis. The initiative aims to reduce the 90% rejection rate for ADU applications due to missing information, potentially cutting approval times by weeks while freeing up city staff resources.

What you should know: The Planning, Building and Code Enforcement Department will pilot AI software to help customers verify ADU application completeness before submission.

• Currently, 90% of ADU applications are returned to applicants for missing information, creating weeks-long delays in the permitting process.
• The AI tool will quickly identify incomplete or missing information, reducing both approval delays and staff workload by hours each week.
• Internal testing by city staff begins this fall, with potential rollout to ADU applicants in 2025.

How it works: The pilot maintains human oversight while leveraging AI to pre-screen applications for completeness.

• City staff will use the software during the initial testing phase while continuing manual reviews to ensure responsible AI implementation.
• The technology will help applicants arrive better prepared, making the entire process more predictable and efficient.
• San Jose is currently testing software from CivCheck, a permitting technology company, but may explore partnerships with other firms in the future.

The big picture: This represents another step in San Jose’s broader AI leadership strategy, building on previous initiatives like the GovAI Coalition and staff upskilling programs.

• “I don’t think it’s a crazy statement to say that permitting controls the speed of innovation and development in a city,” said Stephen Caines, the city’s chief innovation officer.
• A recent AI pilot for bus route optimization achieved approximately 20% faster ride times, demonstrating the city’s commitment to AI-driven efficiency improvements.

Why this matters: The pilot could extend beyond ADUs to other permitting processes, potentially accelerating disaster recovery efforts like those needed after events such as the L.A. fires.

• San Jose joins cities like Bellevue, Washington, which already uses Govstream.ai’s “smart assistant” for zoning inquiries and resident responses.
• The initiative complements other efficiency measures including preapproved ADU plans and certified building professional programs that bypass standard plan reviews.

What they’re saying: City leaders emphasize the transformative potential of modernizing decades-old processes.

• “It’s time to bring permitting into the 21st century,” San Jose Mayor Matt Mahan said in a statement.
• “We are dedicated to taking any guesswork out of the permitting process, helping builders and residents move quickly with clarity and confidence,” added Chris Burton, PBCE director.