New Zealand government unveils national strategy for AI adoption
A response to international trends and local needs
Until now, New Zealand had been the only country in the OECD without a formal AI strategy, despite rapidly advancing AI uptake internationally. The new strategy is designed to help New Zealand catch up with other small, advanced economies and to address a growing gap in AI readiness among local organisations. Government analysis has found that most New Zealand businesses are still in the early stages of adopting AI, with many lacking a clear plan for integrating the technology.
The government's announcement highlights the potential for AI to drive significant economic growth, with estimates suggesting the technology could add up to NZ$76 billion to the country's GDP by 2038. Recognising both the opportunities and the challenges, the strategy focuses on building local capability, promoting innovation, and managing risks responsibly.
Light-touch regulation and clear guidance
A key feature of the strategy is its commitment to light-touch regulation. The government has opted not to introduce new AI-specific laws at this stage, instead relying on existing legal frameworks around privacy, consumer protection, and human rights. The aim is to reduce barriers to AI adoption and provide clear regulatory guidance that enables innovation, while still protecting New Zealanders' rights and building public trust.
To support safe and responsible use of AI, the government has released voluntary Responsible AI Guidance alongside the strategy. This guidance is intended to help organisations use, develop, and innovate with AI in a way that is ethical, transparent, and aligned with international best practice. The approach is informed by the OECD's AI Principles and emphasises transparency, accountability, and the importance of maintaining public confidence.
The strategy also commits to monitoring international developments closely and participating in global efforts to develop consistent approaches to the governance of AI.
Focus on business adoption and workforce skills
Unlike some strategies that prioritise AI research and development, New Zealand's approach is focused primarily on enabling the adoption and application of AI by businesses. The government sees the greatest opportunity in supporting local firms to take up AI technologies, adapt them to New Zealand's needs, and use them to create value in key sectors such as agriculture, healthcare, and education.
The strategy acknowledges several barriers to wider AI adoption, including a shortage of skilled workers, a lack of understanding about how to deploy AI effectively, and uncertainty about the regulatory environment. To address these issues, the government is supporting a range of initiatives to build AI skills within the workforce and is providing advice and support to help businesses prepare for and benefit from AI.
The strategy is designed to give businesses the confidence to invest in AI, with the government promising to identify and remove any legal or practical obstacles that may hinder innovation. There is also a commitment to ensuring that AI is developed and used in a way that is inclusive and reflects the needs of Māori and other communities.
Supporting both public and private sector innovation
While the new strategy is primarily focused on the private sector, the government has signalled its intention to lead by example in the public sector as well. A separate stream of work, led by the Minister for Digitising Government, is underway to explore how AI can improve public services and support digital transformation across government agencies.
By taking a coordinated and enabling approach, the government hopes to position New Zealand as a leader among smaller advanced economies in the responsible adoption of AI. The strategy sets out clear expectations for businesses and government agencies alike, encouraging investment in AI technologies that drive productivity, deliver better services, and help New Zealand compete on the global stage.
Next steps
The government will continue to monitor the rollout of the AI strategy and engage with industry, academia, and communities to ensure that New Zealand's approach remains responsive to technological and social change. The Responsible AI Guidance will be updated as required, and officials will keep a close watch on international developments to ensure New Zealand's regulatory environment remains fit for purpose.
With this announcement, New Zealand signals its intention to embrace the opportunities of artificial intelligence, with a focus on responsible, inclusive, and innovation-driven adoption for the benefit of all New Zealanders.
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