The Tasmanian government used artificial intelligence (AI) to validate a developer's claim about the economic benefits of a contentious luxury hotel planned for Hobart, new documents reveal.

The government has been accused of "cooking the books" after declaring the Chinese company's plan as a major project, bypassing the local council's approval process.

Chambroad wants to build the $65 million, 155-room hotel on prime real estate at Kangaroo Bay, on the eastern shore of the River Derwent.

Clarence City Council, which is trying to buy back the land it sold to the developer, is considering a legal challenge against the government's declaration of major project status.

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