N.W.T. government-funded mining booklet raises questions about AI use in publicly paid contracts

The N.W.T. government spent $12,860 on a Mining Week booklet mailed to 22,000 residents that was filled with AI-generated errors. The incident exposed the territory's lack of a formal policy on AI use in publicly funded work.

Categorized in: AI News Government
Published on: May 31, 2026
N.W.T. government-funded mining booklet raises questions about AI use in publicly paid contracts

N.W.T. Government Grapples With AI Use After Booklet Filled With Errors

The Northwest Territories government paid $12,860 to support Mining Week 2026, an annual promotional event for the minerals industry. A contractor hired to produce an activity booklet used AI to generate images, leading residents to question how public funds should be spent on creative work.

Approximately 22,000 copies of the booklet were mailed to N.W.T. residents. Social media posts quickly highlighted multiple errors: characters with too many or too few fingers, incorrect mineral labels on periodic tables, and web addresses that appeared to be AI-generated mashups of government websites.

Gray Matters, the N.W.T.-based design firm hired by Mining North Works to produce the booklet, did not respond to requests for comment. The N.W.T. Department of Industry, Tourism, and Investment said it was aware AI was being used for the artwork, citing "time and budget considerations" as reasons for the decision.

The government framed its responsibility narrowly. A spokesperson said the territorial government did not make decisions about imagery or AI use - those fell to the contractor hired by Mining North Works, a public awareness initiative operated by the Nunavut and N.W.T. Chamber of Mines in partnership with both territorial governments.

Government Lacks Clear AI Policy

David Maguire, director of corporate communications for the N.W.T. government, said the booklet reveals a gap in policy. "Right now, we don't have a hard-set, fast rule, but we do have guidelines for how our staff use AI," he said.

His team oversees the Visual Identity Program, which sets standards for government publications - everything from approved fonts and colors to placement of the territorial logo. Maguire said the department has been watching public reaction closely and recognizes that AI for Government use requires formal rules.

AI is already being used by government staff in day-to-day work, Maguire said, often without public notice. The Mining Week booklet made the practice visible and sparked debate.

He said regulations could build on existing standards used for stock images, which have always carried risks - such as accidentally selecting the wrong species of caribou or including southern trees in images meant to represent the North.

Human Oversight Essential

Maguire emphasized that errors like the periodic table mistakes show why humans must remain in the process. "We need people in the process, 100 per cent," he said. "They're the ones who are going to be making the decisions, be accountable at the end of the day."

The territorial government is "taking a close look" at its relationship with Mining North Works, said Mel Leonard, a spokesperson for the Department of Industry, Tourism, and Investment. The broader question, he said, concerns which rules apply to subcontractors hired by contractors paid with public money.

Artists Worry About Cost Cutting

Northern artists argue the conversation cannot focus solely on cost. Alison McCreesh, who has worked on government projects, said choosing cheaper AI options has consequences beyond the balance sheet.

"When you hire artists or humans or small businesses, they're also putting money back into the community," McCreesh said. "Once you've cut enough things off the balance sheet, then that person just can't be an artist anymore. And then how bleak will our cities be?"

The N.W.T. government released a fiscal sustainability strategy in 2024 that includes ensuring efficiency in spending. That focus on cost reduction could make AI more attractive to departments - but artists say efficiency metrics miss the broader impact on Northern creative sectors.

The Mining Week booklet has forced the territorial government to confront questions it has avoided: When is AI appropriate for government work? Who decides? And what rules should apply to contractors and their subcontractors? Those answers will likely shape how the N.W.T. spends public money on AI Design Courses and creative work going forward.


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