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NZ Herald
14-07-2025
- Business
- NZ Herald
New Zealands National AI Strategy big on ‘economic opportunity', short on managing ethical and social risk: Opinion
Nvidia, which makes the hardware that powers AI technology, just became the first publicly traded company to surpass a $4 trillion market valuation. It'd be great if New Zealand could get a slice of that pie. New Zealand doesn't have the capacity to build new generative AI systems, however. That takes tens of thousands of Nvidia's chips, costing many millions of dollars that only big tech companies or large nation states can afford. What New Zealand can do is build new systems and services around these models, either by fine-tuning them, or using them as part of a bigger software system or service. The Government isn't offering any new money to help companies do this. Its AI strategy is about reducing barriers, providing regulatory guidance, building capacity and ensuring adaptation happens responsibly. But there aren't many barriers to begin with. The regulatory guidance contained in the strategy essentially says 'we won't regulate'. Existing laws are said to be 'technology-neutral' and therefore sufficient. As for building capacity, the country's tertiary sector is more under-funded than ever, with universities cutting courses and staff. Humanities research into AI ethics is also ineligible for Government funding as it doesn't contribute to economic growth. A relaxed regulatory regime The issue of responsible adoption is perhaps of most concern. The 42-page Responsible AI Guidance for Businesses document, released alongside the strategy, contains useful material on issues such as detecting bias, measuring model accuracy, and human oversight. But it is just that – guidance – and entirely voluntary. This puts New Zealand among the most relaxed nations when it comes to AI regulation, with Japan and Singapore. At the other end is the European Union, which enacted its comprehensive AI Act in 2024, and has stood fast against lobbying to delay legislative rollout. The relaxed approach is interesting in light of New Zealand being ranked third-to-last out of 47 countries in a recent survey of trust in AI. In another survey from last year, 66% of New Zealanders reported being nervous about the impacts of AI. Some of the nervousness can be explained by AI being a new technology with well-documented examples of inappropriate use, intentional or not. Deepfakes as a form of cyber bullying have become a major concern. Even the Act Party, not generally in favour of more regulation, wants to criminalise the creation and sharing of non-consensual, sexually explicit deepfakes. Generative image, video and music creation is reducing the demand for creative workers – even though it is their very work that was used to train the AI models. But there are other, more subtle issues, too. AI systems learn from data. If that data is biased, then those systems will learn to be biased, too. New Zealanders are right to be anxious about the prospect of private sector companies denying them jobs, entry to supermarkets or a bank loan because of something in their pasts. Because modern deep learning models are so complex and impenetrable, it can be impossible to determine how an AI system made a decision. And what of the potential for AI to be used online to mislead voters and discredit the democratic process, as the New York Times has reported may have occurred already in at least 50 cases? Managing risk the European way The strategy is essentially silent on all of these issues. It also doesn't mention Te Tiriti o Waitangi/Treaty of Waitangi. Even Google's AI summary tells me this is the nation's founding document, laying the groundwork for Māori and the Crown to coexist. AI, like any data-driven system, has the potential to disproportionately disadvantage Māori if it involves systems from overseas designed (and trained) for other populations. Allowing these systems to be imported and deployed in Aotearoa New Zealand in sensitive applications – healthcare or justice, for example – without any regulation or oversight risks worsening inequalities even further. What's the alternative? The EU offers some useful answers. It has taken the approach of categorising AI uses based on risk: 'Unacceptable risk' – the likes of social scoring (where individuals' daily activities are monitored and scored for their societal benefit) and AI hacking – is outright banned. High-risk systems, such as uses for employment or transportation infrastructure, require strict obligations, including risk assessments and human oversight. Limited and minimal risk applications – the biggest category by far – imposes very little red tape on companies. This feels like a mature approach New Zealand might emulate. It wouldn't stymie productivity much – unless companies were doing something risky. In which case, the 66% of New Zealanders who are nervous about AI might well agree it's worth slowing down and getting it right.
Scoop
08-07-2025
- Business
- Scoop
Government AI Strategy To Boost Productivity
Minister of Science, Innovation and Technology Science, Innovation and Technology Minister Dr Shane Reti has launched New Zealand's first AI Strategy to boost productivity and grow a competitive economy. 'AI could add $76 billion to our GDP by 2038, but we're falling behind other small, advanced economies on AI-readiness and many businesses are still not planning for the technology,' says Dr Reti. 'We must develop stronger Kiwi AI capabilities to drive economic growth, and this Strategy sends a strong signal that New Zealand supports the uptake of AI. 'The Government's role in AI is to reduce barriers to adoption, provide clear regulatory guidance, and promote responsible AI adoption. 'We're taking a light-touch approach, and the Strategy sets out a commitment to create an enabling regulatory environment that gives businesses confidence to invest in the technology. 'Private sector AI adoption and innovation will boost productivity by unlocking new products and services, increasing efficiency, and supporting better decision-making. 'New Zealand's strength lies in being smart adopters. From AI-powered precision farming techniques to diagnostic technology in healthcare, Kiwi businesses can tailor AI to solve our unique challenges and deliver world-leading solutions.' The Strategy aligns with OECD AI Principles and the Government will continue to work with international partners on global rules to support the responsible use and development of AI. 'New Zealanders will need to develop trust and give social licence to AI use, so the Government has also released Responsible AI Guidance to help businesses safely use, develop and innovate with the technology,' says Dr Reti. The Government will use existing legislation and regulations such as privacy, consumer protection and human rights, to manage risk and privacy concerns.
