New Zealand’s
Strategy for Artificial
Intelligence
Advancing New Zealand towards a more prosperous, AI powered future
Print: ISBN 978-1-991316-79-0
Online: ISBN 978-1-991316-78-3
Month YYYY
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Ministerial foreword
[TBC]
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Table of Contents
Ministerial foreword ......................................................................................................................................... 3
Advancing New Zealand towards a more prosperous, AI powered future ....................................................... 5
The opportunity for New Zealand ..................................................................................................................... 7
Principle One: Strengthening AI Research & Development .............................................................................. 9
Principle Two: Cooperating internationally .................................................................................................... 11
Principle Three: Fostering the AI ecosystem ................................................................................................... 13
Principle Four: Enabling policy environment .................................................................................................. 15
Principle Five: Building Kiwi capacity .............................................................................................................. 17
Areas of opportunity ....................................................................................................................................... 19
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Advancing New Zealand towards a
more prosperous, AI powered future
Through the enhanced adoption and integration of Artificial Intelligence, New Zealand can lift productivity
and innovation, capitalise on research strengths, and boost sustainable economic growth.
Achieving this requires embracing the potential of Artificial Intelligence across different sectors of the
economy and accelerating adoption and use, while maintaining trust and ethical principles.
Artificial Intelligence (AI) offers enormous opportunity to the New Zealand economy. Industry research
suggests that generative AI adoption could add $76bn to the economy by 2038, or over 15% of GDP. Other
economic analysis – including from the Treasury and the New Zealand Institute of Economic Research – also
find that AI could have a significant impact at the macroeconomic level.
The Government aims to see more New Zealanders, businesses and organisations using, deploying and
designing AI, so that the potential this technology offers for innovation, productivity, and economic growth,
diversification and resilience can be fully realised.
This Strategy rests on five policy principles, drawn from the Organisation for Economic Co-operation and
Development’s (OECD) AI Principles to which New Zealand is an adherent. The policy principles depicted below,
together with a commitment to the five values-based AI principles advanced by the OE
CD1, help guide AI
policies which are innovative and trustworthy. The Strategy also identifies two areas of immediate opportunity:
public services and healthcare.
This Strategy builds on the momentum of groups that have already made strides towards a strategic approach
to AI in New Zealand’s economy, including the AI Forum and its
AI Blueprint for Aotearoa New Zealand.
Unlocking economic growth through AI adoption and development
1 For more information on the OECD AI Principles, see Annex.
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Government actions to advance New Zealand towards a more prosperous, AI-powered future
New Zealand’s AI Policy Principles
Areas of opportunity
•
1. Strengthening
•
2. Cooperating
3. Fostering the
•
4. Enabling policy
•
5. Building
•
Public Service
•
Healthcare
•
AI R&D
•
internationally
AI ecosystem •
environment •
Kiwi capacity
•
•
NZ works with partners
NZ has the right
AI is used to deliver
AI improves health
NZ’s AI R&D capabilities
NZ is a good place to use NZers have the right
Desired
to influence global AI
infrastructure to
better, more
outcomes for patients
deliver benefits for
and develop trustworthy
skills to use and
outcomes
norms, and attracts
support AI innovation
efficient public
and productivity for the
New Zealanders
AI
innovative with AI
inward AI investment
and use
services to NZers
workforce
• Sharpened focus of • Engaged in
• Invested in High
• Published guidance for • Published AI
• Published
• Established the
Catalyst and
multilateral
Performance
responsible AI in
resources for
guidance for
National AI and
Marsden Funds
discussions on AI to
Compute
business (forthcoming) educators
Responsible AI in
Algorithm Expert
Delivered
shape global norms • Ultra-fast broadband
• Updated Active
Public Service
Advisory Group
and governance
available to 87% of
Investor + Visa
• Precision Health work
population
programme with
focus on AI
• Monitoring of AI
• Engaging in AI
• Monitoring and
• Stewardship of overall • Monitoring
• Building capability • Procuring AI
Ongoing
uptake of R&D Tax
discussions in
providing advice on
regulatory
impact of AI on
for Public Service
productivity tools for
Incentive scheme
international fora
rural connectivity
environment
labour market
AI
clinicians
• Develop policy for
• Establish Invest NZ • Pass Customer &
• Publish NZ Cyber
• Foreign
• Deliver Public
• Health-technology
management of
• Reform Overseas
Products Data Bill
Security Strategy
Investment Fund
Service AI
assessment
research Intellectual
Investment Act
and associated
• Develop policy to
tax changes
Assurance Model
processes in place to
Now –
Property
• Commence
regulations
address use of cultural • Deliver AI
• Publish Public
guide investment
2026
• Initial decisions
Singapore-NZ Joint
IP in AI
capability support Service year 2 AI
• Comms and
taken on Advanced
Grant Call: AI for
to small business
plan
engagement to build
Tech Research
Healthy Ageing
trust and social
Organisation
project
license in Health AI
• Advanced Tech
• NZ chairs Digital
• Census data access • Potential review of
• Implement
• Implement AI
• Governance model in
Research
Nations international
improvements
copyright policy for AI
refreshed NZ
common practices
place to leverage
2027
Organisation in
network
Curriculum to
in the Public
data, digital and AI
onward
operation (TBC)
strengthen AI
Service for high
for benefits across
content
use areas
the sector
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The opportunity for New Zealand
AI is a powerful general purpose technology. Early forms, including machine learning, have existed for decades,
and AI is now in many everyday tools used by kiwis. For instance, search engines use AI to comb through vast
amounts of data to provide the most relevant answer to
queries. Many people have facial recognition software
GenAI could create an extra $4.5 trillion (USD)
embedded on their mobile phones, which uses AI to
across the Asia-Pacific region in next 15 years.
verify identities to unlock their devices. Or utilise
Smartphone virtual assistants – like Apple’s Siri and
- Accenture (2024)
Microsoft’s Cortana – that use AI and natural language
processing to understand commands and provide
Generative AI could deliver between $2.6T and
relevant information
.2
$4.4T [USD] to the global economy annually.
Recent advancements have propelled AI forward in new
Non-generative AI could unlock between $11T
and promising ways. The emergence of generative AI
and $17.7T [USD] in economic value annually.
(GenAI), most notably with the public launch of ChatGPT
- McKinsey (2023)
in 2022, signalled a major leap forward with significant
implications for economies and societies.
A 20% increase in use of advanced digital
AI is likely to affect almost every aspect of life as it
technologies could grow New Zealand
becomes increasingly capable and is further integrated
GDP by 1.15% to 2.08% per annum.
into the way that New Zealanders work, learn and play.
The future of AI is rich with opportunity for New
- NZIER & Spark (2024)
Zealanders. Widespread adoption across the economy
could grow economic prosperity, boost productivity,
Generative AI could add $76B in value to the
catalyse innovation, increase export opportunities, and
New Zealand economy by 2038. GDP would be
deliver better public services.
15% larger relative to the baseline forecast.
At the same time, like any technology, AI is not without
- Accenture & Microsoft (2024)
risk and should be used with care. AI will only deliver
benefits if businesses, workers, consumers, research organisations and government agencies harness AI
responsibly and use it safely and effectively.
AI and opportunities for the Māori economy
Indigenous cultures around the world have reacted to the rise of AI with a mixture of concern and excitement.
New Zealand is no exception. AI has the potential to deliver social and economic benefits for Māori, including
by using, sharing and amplifying mātauranga Māori and Māori data, which are taonga. Conversely, AI can
misappropriate cultural knowledge and undermine data sovereignty, including where these are used for the
training of AI models.
Māori cultural IP is a key part of what makes Aotearoa New Zealand unique, and growing the Māori economy is
fundamental to advancing national prosperity. At the nexus of these issues is the opportunity for Māori to
leverage cultural IP through AI for their benefit. To enable this,
Te Puni Kōkiri is developing domestic and
international policy to address regulatory barriers to the commercialisation of cultural IP, and to ensure that
the benefits flow back to Māori and Aotearoa New Zealand more broadly.
2 For a brief summary and definition of AI, see Annex.
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Māori organisations innovating with AI and cultural IP
Example 1
Example 2
Example 3
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Principle One: Strengthening AI
Research & Development
Leveraging homegrown AI expertise to benefit New Zealanders
Advances in AI are propelled by cutting-edge research and development (R&D). At the same time, AI can itself
support researchers, scientists and innovators to progress their own endeavours, including in fields other than
AI. In both senses AI is intrinsically linked to, and poised to play a greater role in, New Zealand’s Science,
Innovation and Technology (SIT) system. Maintaining capability in AI R&D also helps New Zealand participate in
advanced research discovery both internationally and domestically, and to translate technological
developments into practical applications.
A history of excellence in AI science
Resetting New Zealand’s SIT system
The Government is focussed on creating a more
New Zealand has areas of
dynamic SIT system that can respond to priorities,
longstanding excellence in
keep pace with technological advances, and help
high-quality fundamental AI
grow the economy. In January 2025, it announced
research.
the most significant reset of New Zealand’s SIT
In 1996, the University of
system in more than 30 years.
Waikato released WEKA (Waikato Environment for
As part of these changes, New Zealand’s existing
Knowledge Analysis), an open-source tool for
seven Crown Research Institutes will be consolidated
machine learning and data mining. WEKA is still in
to form three Public Research Organisations (PROs),
use today, despite being one of the oldest available
focussed on the bioeconomy, earth sciences, and
machine learning systems. It is referenced in over
health and forensic science services.
25,000 research and science publications.
A new advanced technology PRO will also be created,
Almost thirty years later, New Zealand’s universities
potentially delivering research, capability, and
and Crown Research Institutes continue to
commercial outreach, including on AI. This
contribute to domestic and global AI research
organisation will be modelled on international
excellence. In 2023, per capita, New Zealand ranked
comparators, seeking to maximise New Zealand’s
24th globally in the volume of AI academic
distributed advanced technology expertise.
publications, and 12th in terms of publication
citations (a key measure of reach and impact).
The Government has also announced plans to
introduce a national policy for the management of Intellectual Property (IP) in universities and PROs, which will
facilitate the commercialisation of new technologies including AI.
Putting investments to work in science, innovation and technology
Each year, $1.2bn of government funding is invested in the SIT system. The Government is considering how this
funding is best configured, the shape of the innovation system, and how to best support startup and scaleups,
and enable better technology transfer.
A sharpened focus for research and science funding will ensure greater direct value to New Zealanders. This
will be applied through contestable funding mechanisms, where research and science ideas are assessed
against certain criteria and then prioritised:
• The Catalyst Fund invests in SIT activities that support international collaborations to benefit New Zealand’s
economy, environment and society. AI is one of the six research priority areas for the Fund for the 2024-
2028 period.
• The Marsden Fund is New Zealand’s premier fund for investigator-led research. The Marsden Fund
Investment Plan now focuses on activity that can be of economic, environmental or health benefit to New
Zealand. AI research and science is firmly in scope, given the renewed emphasis on physics, chemistry,
maths, engineering and biomedical sciences.
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To support businesses and other organisations to innovate, the Research and Development Tax Incentive (the
RDTI) was introduced in 2019, offering a tax credit of 15% on eligible expenditure. The total estimated spend of
AI-related projects (based on approved RDTI applications) currently sits at $611 million. This figure – a key
indicator of AI innovation – will be monitored to determine whether it is growing over time as a proportion of
overall RDTI spend, to inform policy deliberation.
Scientists, innovators and researchers are pushing the envelope on AI, creating world-
leading technology and delivering benefits to New Zealanders and the economy
AI-powered underwater robots: Computer Vision
Predicting whale-watching success with AI: NIWA
Research Lab, University of Canterbury (UC)
Combining computer vision and AI with an
The National Institute of Water and Atmospheric
emphasis on real-time 3D reconstruction and
Research (NIWA) has partnered with a
tracking, UC is developing a cost-effective
commercial whale watching business in Kaikoura
autonomous underwater vehicle (AUV) to support
to give the best possible experience for tourists.
New Zealand’s mussel farm industry. The AUV uses
Through AI, and with the combined power of
AI to navigate, recognise species, measure
NIWA forecasting and historical data on whale
specimens and provide vital information to
appearances, sailing predictions can be made
growers.
and communicated to customers. This
The AUV reduces the need for manual operation.
technology could be scaled up to other parts of
Possible future commercial applications also
New Zealand’s tourism sector, where other
include the scanning of wharf pylons and ship hulls
outdoor ventures are similarly weather-
to accurately and safely identify invasive organisms.
dependent.
AI-powered Digital Twin: Institute of Environmental Science and Research (ESR)
ESR's Digital Twin platform creates AI-driven digital replicas of complex physical systems to support
improved decision-making. The platform uses AI with a synthetic population derived from census and survey
data to power large-scale simulations.
Initially developed for Covid-19 modelling, the system extends to a range of domains, including public
health, environmental management, and climate change resilience. The platform provides the ability to do
“what-if” analysis, testing scenarios to gain critical insights for government agencies, such as virtual
outbreak modelling for measles. As the technology continues to evolve, it is attracting interest from both
the public and private sector, promising to deliver AI-powered decision support across multiple domains and
addressing global challenges.
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Principle Two: Cooperating
internationally
Engaging with partners on the global stage
AI is a global technology. It is increasingly central to nations’ economic competitiveness and national security,
and it is playing a growing role in geopolitics. The borderless nature of AI means that likeminded countries
must work closely together to develop policies that facilitate the responsible use, development and export of
AI without undue trade barriers or legal complications.
Contributing to global AI Governance and information sharing
New Zealand will continue to engage in the most important global fora on AI governance to influence the
responsible development of AI, working closely with partner governments, international organisations,
industry, standards bodies, and academic institutions. Informed by the OECD AI Principles, New Zealand is
committed to promoting innovative and trustworthy AI, reaffirming the applicability of international law,
human rights, and democratic values, and ensuring it takes a multistakeholder approach to international AI
efforts.
Since 2022, international engagements on AI have proliferated widely. New Zealand will give weight to
initiatives that align with national interests, and which are likely to have a real-world impact by improving lives,
growing economies, improving global security, or protecting people from harmful or negligent AI use.
International partners are paying increased attention to non-binding General Assembly Resolutions on AI and
meetings of the AI Safety Summit Series, both of which have the potential to crystalise global norms and
encourage international standards. APEC is also emerging as a forum for exploring AI innovation and sharing
best practice on AI policy for economic development and regional integration.
New Zealand will also deepen engagement with a range of likeminded partners, including other small,
advanced economies, identifying opportunities to enhance collaboration and information sharing. The New
Zealand – United States Dialogue on Critical and Emerging Technologies is a new mechanism that can facilitate
linkages between respective technology sectors, fostering new opportunities for focused research cooperation
on AI. Similarly, New Zealand is chairing the 2027 Digital Nations annual meeting, a network of the world’s
most advanced digital nations, set up to share expertise and to collaborate on common problems.
Enhancing international connectedness for AI investment and innovation
As part of its focus on economic growth and development, the Government has recently announced changes to
attract more foreign direct investment. These changes include:
• Establishing Invest New Zealand, which will be the government’s one-stop-shop and problem solver for
investors. It will proactively identify high-impact opportunities including in AI, cut through red tape, and
connect investors to drive Kiwi growth. This new organisation will be tasked with attracting FDI to drive
economic growth, create high-paying jobs, and enhance New Zealand's global competitiveness.
• Reforming the Overseas Investment Act 2005, which will reduce restrictions, compliance costs, and
uncertainty for prospective international investors.
• Changing the Active Investor Plus Visa to provide a pathway for experienced, skilled investors to contribute
to the growth of New Zealand's economy. The changes, which took effect on 1 April 2025, are designed to
make this visa more attractive by simplifying the categories and expanding the scope of acceptable
investments.
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Leveraging New Zealand’s international partnerships
Research institutions throughout the world are considering
how to apply AI to problems or challenges common to many
different countries. It is often better to work collaboratively
with likeminded partners, to draw on the expertise of others.
One example of this is the
New Zealand-Singapore
Leveraging AI for Healthy Ageing 2025 investment,
announced in 2024, which provides New Zealand researchers with an invaluable opportunity to work with
one of the world’s foremost AI research organisations.
This investment is a joint initiative, funded by the Singaporean and New Zealand Governments. It seeks
novel, scalable, and cost-effective AI solutions to address neurological and mental conditions among older
people, to reduce the healthcare burden, address the wider societal impacts of ageing, and improve the
quality of life for older populations. New Zealand, through the Catalyst Fund, is investing up to $12m over
three years to fund up to three projects.
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Principle Three: Fostering the AI ecosystem
2. Enabling
ecosystem
New Zealand has the digital technologies and infrastructure that AI requires
Connectivity
High-Performance Computing
High quality connectivity is critical to the
High-performance computing (HPC) is a specialised form of compute for solving
_
success of modern economies. Most
complex scientific and engineering problems that require high-speed parallel
consumer-facing AI tools are accessed via the
processing, including large-scale simulations, data analysis, and scientific
cloud, where users give instructions or
computations, for the development of cutting-edge, complex AI models,
prompts to an AI model through a device
genomics, and climate modelling.
(e.g., mobile phone) and computation is
outsourced to data centres.
In New Zealand the government supports two main HPC providers:
Most of New Zealand is connected to high-
• The New Zealand eScience Infrastructure (NeSI) is a contract-based collaboration hosted by
speed internet. In 2023, over 1.8 million
the University of Auckland and available for use by all research organisations in New Zealand.
premises had access to the Ultra-Fast
NeSI provides specialised HPC resources and analytics to researchers, as well as HPC training
Broadband (UFB) network, 87% of New
and support for researchers.
Zealanders had access to fibre connections,
• NIWA is a Crown Research Institute focussed on advancing environmental science for the
and 97% of urban households were within
sustainable management of natural resources. It uses HPC for extremely complex modelling
coverage of cellular fixed wireless services.
to forecast weather, project the impacts of climate change, and understand the systems that
drive the oceans. In August 2024, a further investment of $20m was made into NIWA’s HPC,
Since 2010, the government has invested over $2.5b in this
marking a significant upgrade in generational power.
infrastructure, including $1.8b in loans to support the rollout of
UFB and more than $770m in grant funding for rural
The government also invests in data connectivity through the Research Education Advanced
connectivity infrastructure.
Network New Zealand (REANNZ). REANNZ operates and supports a specialist digital network
engineered to meet the unique demands of New Zealand’s research and education sector. From
The emergence and rapid growth of
1 July 2025, REANNZ will also provide specialised HPC resources and analytics to researchers
broadband services via low-earth orbit
working on large-scale, highly complex projects.
satellites is providing rural broadband users
with greater fixed wireless network coverage
and performance options than ever before.
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Data
Datacentres and AI Compute
Government Stats NZ is New Zealand’s official, dedicated statistics agency, and home to the
Data centres are facilities that host
data
Government Chief Data Steward. The agency has responsibility for collecting,
computing, data storage and networking
stewarding and analysing data about New Zealand. It hosts databases of national
equipment for networks.
significance as well as the Centre for Data Ethics and Innovation, which is charged
In the context of AI, data centres house
with supporting the ethical use of New Zealand’s data. Stats NZ is modernising the
processors that are used for diverse
future of population and social statistics, including census. The aim is to safely
workloads including training and operating AI models. By
provide critical data and statistics faster and more often, while increasing
domiciling these facilities, New Zealand can increase control
flexibility to meet unmet data needs and aspirations over time.
over how data is stored and used (data sovereignty), protect
sensitive information, reduce latency, and create resilience
Government agencies and Crown entities house extensive, longitudinal datasets relating to many
against disruptions such as those caused by natural disasters.
different facets of New Zealand. AI can help to unlock additional latent power of this data by
leveraging it to create new insights and solutions. Publicly accessible datasets are maintained for a
New Zealand has over 80 data centres, mostly in Auckland
range of health themes (longitudinal population health data, and on specific health issues), different
and Wellington. The market is dynamic, with local operators
facets of the environment (e.g., climate, earthquake, land) and cultural and historical data (books,
including Spark and Datacom, as well as overseas
photographs, maps, music and digital content). data.govt.nz. is a free, open-source repository of
hyperscalers entering the market, including AWS through its
data generated across government organisations and helps people discover and use open data;
Cloud Region investment.
empowering data-driven technology such as AI.
Data centres use large amounts of power. New Zealand’s
Commercial In commercial contexts businesses can hold similarly powerful data, but this can
energy grid is 87% renewable and growing, making New
data
be harder to leverage because the datasets are narrower, and businesses may be
Zealand a desirable place for increased data centre
reluctant to share or pool this data for commercial or privacy reasons. To make
investment.
better use of commercial data, the Government has introduced the Customer and
Product Data Act 2025. This legislation provides a framework to enable
Leveraging public data with AI
businesses’ customers to have greater access to, and sharing of, the data that
businesses hold about them.
Wellington technology company Lynker Analytics uses AI to
capture building outlines across New Zealand from publicly
owned aerial imagery, supplying Land Information New
The Act establishes a ‘consumer data right’ to give individuals and businesses greater choice and
Zealand with a national database that is open and available
control over data about them, while requiring that any data exchange is done within appropriate
to all. This database influences decisions made at national
guardrails. Underpinning regulation will set out how the Act will apply to designated sectors,
and regional levels, including in the building consenting
beginning with banking and followed by the electricity sector. The Act provides significant
process, monitoring building and land use changes, risk
opportunities for more innovative use of data, including with use of AI tools, to provide new and
modelling and locating buildings in an emergency.
improved services and products to customers.
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Principle Four: Enabling policy
environment
Taking on the opportunities of AI while managing the risks
Governments around the world are considering how to calibrate policy settings to maximise the benefits of
adopting AI whilst mitigating the risks the technology presents. Overly burdensome regulatory measures can
close off opportunities for innovation. At the same time, like any new technology, AI can pose risks if used
incorrectly or maliciously, meaning guardrails may be needed.
Providing confidence to use, innovate with and develop AI
The Government has adopted a proportionate and risk-based approach to AI. This seeks to maintain guardrails,
where needed, to support the safe use of this technology, and to provide clarity to businesses, investors, and
innovators about New Zealand’s policy environment.
New Zealand has existing frameworks, including in relation to privacy, consumer protection and human rights,
which are largely principles-based and technology neutral, and are applicable to AI. These frameworks can be
updated based on evidence, as and when needed, to enable innovation or address harms. A range of agile
regulatory levers can be employed to support responsible AI innovation and use, in preference to developing
standalone AI laws. Examples of these are set out below.
Guidance can help people and organisations use AI responsibly in different contexts, such as:
•
Responsible AI Guidance for Business •
Responsible AI Guidance for the Public Service: GenAI •
Generative AI Guidance and Resources for educators
• NCSC and CERT NZ’s joint
Engaging with Artificial Intelligence for secure AI use
Toolkits can support responsible AI deployment and help users with regulatory compliance,
governance, risk management and transparency, including:
• The AI Forum’s
AI Governance website, which is a resource for organisations seeking
inclusive and responsible AI adoption.
• The
Algorithm Impact Assessment Toolkit, originally developed for government agencies
to implement the Algorithm Charter for New Zealand but also applicable to business,
which offers a step-by-step process to identify and manage opportunities, risks and harms
that AI might present.
International standards set voluntary guidelines and can be drawn on by regulatory systems
to ensure quality, safety, security and interoperability of AI
. By referencing international
standards in domestic policy New Zealand can also align with international practice.
New Zealand contributed to the development of the first AI standards from the International
Organisation for Standardisation (ISO).
Protecting New Zealand’s free, open, and democratic society
AI is one of the most significant emerging, critical, and sensitive technologies outlined in New Zealand’s
National Security Strategy. Due to the inherent power and utility of AI, it holds both transformative potential,
but also poses risks that could be exploited by state, criminal, and terrorist actors to increase their capabilities,
and is finding increasing application in military settings.
To support secure AI development and use, the Government will:
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•
Understand the potential risks of AI as they emerge. Emerging, critical, and sensitive technology is a
National Security Intelligence Priority. Intelligence agencies focus on understanding the harms, benefits,
opportunities, and current and future impacts for New Zealand, and work closely with international
partners to scan for future threats.
•
Prepare by developing tools to protect New Zealand businesses and society from risk. This includes
recently released guidance
Secure Innovation: Security Advice for Emerging Technology Companies,
created in collaboration with Five Eyes security and intelligence agencies. Building security into the
everyday practices of New Zealand businesses right from the start sets up more robust, resilient, and more
attractive for investors and customers.
•
Work together with New Zealand’s strong network of international partners to
build standards and norms
for the responsible development and secure use of AI. The risks of AI are not unique to New Zealand. This
includes the Singapore-New Zealand enhanced partnership agreement, and the United States-New
Zealand Emerging and Critical Technology Dialogue.
AI Cybersecurity
AI has become a standard tool for those seeking to cause harm online, making it easier
and faster for malicious actors of varying skill to conduct cyber-attacks. But it has
become an equally important tool for defending networks. In the face of these and
other evolving threats, the 2025 Cyber Security Strategy will revise New Zealand’s cyber
security settings in line with the direction set out in the National Security Strategy.
New Zealand’s government security agencies work extensively with international
partners to develop a shared understanding of the cyber threats that all countries face, to coordinate at the
operational level to disrupt cyber-attacks and to build norms of responsible state behaviour in cyberspace.
This collaboration supports domestic cyber security. NCSC, in coordination with international cybersecurity
partners from the USA, Australia, Canada and the United Kingdom, has released
Engaging with Artificial
Intelligence for organisations seeking to deploy AI systems, particularly those deploying and operating
externally developed AI systems on premises or in private cloud environments.
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Principle Five: Building Kiwi capacity
Enabling New Zealanders to succeed in an AI powered world
AI has the potential to create completely new goods and services, free up New Zealanders’ time at work to
focus on higher-value tasks and leisure, and make possible more personalised public services, education and
healthcare.
To make the most of these opportunities a different mix of skills will be required across the economy. In the
labour market, AI is set to:
• create new jobs and professions, not just in the technology sector, where AI and data analytics skills are
fast-growing areas of demand, but also in industries where AI gives rise to entirely new opportunities,
• augment jobs, where workers will be able to use AI to perform their jobs at a more advanced level,
drawing on AI-powered expertise to solve complex problems and reprioritise their time for tasks requiring
human skills, and
• displace some job tasks through automation, where routine actions could be faster and more accurately
performed by AI.
Factoring in AI, climate change and other mega-trends, the World Economic Forum estimates that there will be
a 7% net growth in jobs globally between 2025-2030. In other words, predictions of near-term mass layoffs
associated with AI are likely overblown, but things are still going to change.
The scale and timing of these impacts will vary across New Zealand’s economy. AI will be used first in areas
where there is a high volume of more readily automated tasks. By contrast, tasks in areas which require
complex human judgement, critical thinking, emotional intelligence, and dexterous manual labour are at a
lower chance of being carried out by AI. Some of these changes are predictable, and others will only become
clear with time. MBIE, in coordination with the New Zealand Council of Trade Unions and Business New
Zealand, actively monitors labour market trends. Keeping an eye on these trends will help policymakers
respond appropriately, so that New Zealand can make the transition to an AI-enabled economy.
Preparing learners for an AI-powered future
The Government envisions an education system that develops knowledgeable, well-rounded, critical thinkers
equipped to tackle future challenges. AI is a key part of this future, and students need new skills to leverage its
potential. The education system will prepare young New Zealanders for this transition.
Primary and Secondary Education
New Zealand’s national curricula – the New Zealand Curriculum and Te Marautanga o Aotearoa – already
include AI. In 2017, the Technology learning area and Hangarau wāhanga was revised to emphasise digital
technologies, including AI, in Years 11-13. The Ministry of Education is further revising these areas to cover AI's
workings, evolution, ethics, safety, security, privacy, and literacy. Draft content will be ready for consultation
by the end of 2025, with implementation by 2027.
The Ministry of Education and the New Zealand Qualifications Authority have also created guidance and
resources about the use of GenAI in NCEA assessments to ensure students appropriately use it to support their
learning. Teachers are using AI to enhance their capabilities, reducing workloads and allowing them to focus on
student support, including through AI tutors and AI-powered administrative tools. The Ministry of Education is
also exploring AI's role in supporting students with additional learning needs, whilst making sure that ethical
considerations, safety, security, and privacy are prioritised.
Tertiary Education
New Zealand’s tertiary providers offer world-class AI education, creating a talent pool in global demand.
Tertiary providers are fostering a domestic pipeline of AI talent to drive innovation and capture economic and
social benefits, offering both undergraduate and postgraduate qualifications in AI-specialisations as well as
incorporating AI literacy into the syllabus of broader qualifications to reflect the demands of the future of
work.
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Attracting international talent
AI skills are in global demand, which means New Zealand must make a compelling offer to attract the right
people to its shores. The Government is progressing several opportunities to boost the technology sector by
attracting highly specialised, skilled workers. Announced changes include:
• allowing visa holders to work remotely whilst in New Zealand, encouraging highly skilled workers to visit,
• simplifying and streamlining the Active Investor Plus Visa to attract experienced investors, and
• changing foreign investment fund tax settings to address the double-taxation risk facing people –
especially in the tech sector – remaining in or coming to New Zealand.
Building business AI capability
AI is already transforming business models, product and service offerings, and the ways that customers and
businesses interact. Kiwi employers and workers have strong incentives to explore what AI offers; there is
emerging evidence showing that AI can, at a firm level, increase productivity and add commercial value.
Some New Zealand businesses are already using AI
AI can deliver firm-level benefits
to streamline repetitive tasks like data entry,
inventory and supply chain management, and
• 96% of surveyed NZ employers reported that AI
customer support. This is helping to avoid errors,
significantly boosted worker efficiency (AI Forum,
2024)
free up people to focus on problem solving and
• Large NZ employers think AI could boost NZ firm-
higher-order tasks, and process large amounts of
level productivity by 49% (AWS, 2024)
data to provide insights quickly for better decision-
• GenAI could free up 275 hours per worker annually
making. These efficiency gains are likely the tip of
in NZ by 2038 (Accenture & Microsoft, 2024)
the iceberg; as New Zealand businesses expand use
• One tool saved NZ workers an average of 10 hours
of AI to design products tailored to individual
per month (Microsoft, 2024)
customers, predict market trends, and create
entirely new products and services. Rates of AI adoption are growing. In 2023 a Datacom survey of 200 larger
firms found that only 48% of businesses were using any form of AI; a year later this had grown to 66%. 80% of
surveyed respondents said AI is positively impacting business operations.
While some New Zealand businesses are already using AI, research indicates that there is a gap emerging
between those already leveraging AI and those that are not. For many, the challenge is knowing where to start,
understanding the tools available, and what tasks AI can perform, and how to access training. Others looking to
move from superficial AI use to sophisticated deployment might need to understand how to leverage data, and
what governance arrangements are necessary. There are a range of resources available to build business
capability and support the wider adoption of AI.
Upskilling businesses to take the next step
Training
MBIE is exploring supports for small business, including a pilot of a ‘train the trainer’
upskilling through the Regional Business Partner Network and Business Mentors New
Zealand. Together, these channels support 5,000 businesses annually.
Spark is offering courses including
AI Foundations and
Executive AI for Business Mini-MBA,
designed for workers and business leaders at different stages of their AI journey.
Microsoft is offering the
AI Skills Initiative to a million people in New Zealand and Australia
to build the skills needed for an AI-enabled economy.
Networks of
Networks of expertise provide valuable opportunities to build capability through the
expertise
exchange of knowledge, best practice, resources and through collaborative effort. New
Zealand’s peak AI body, the AI Forum, is a not-for-profit, non-governmental organisation
funded by members. It functions as a hub for connections, advocacy, growing talent and
collaboration across the AI ecosystem.
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Areas of opportunity
AI will benefit New Zealanders in the delivery of public services and healthcare
An AI-capable Public Service delivering better outcomes for all New Zealanders
The Minister for Digitising Government has accelerated the adoption of AI within the public service, with the
ambitious objectives of modernising public services, enhancing efficiency and productivity, and delivering
better outcomes for all New Zealanders.
StatsNZ: Using AI to estimate provisional migration
The Public Service AI Framework, informed by the
OECD’s AI Principles, supports the responsible use
Up-to-date migration statistics are highly valuable to
of AI across the Public Service. Its vision is to adopt
government agencies, businesses and NGOs, but
AI responsibly to modernise public services and
difficult to calculate. To remedy this, in a world-first,
deliver better outcomes for all New Zealanders.
StatsNZ now uses AI to predict traveller behaviour.
The New Zealand Government Chief Digital Officer
StatsNZ measures migration through border-crossing
(GCDO) has been appointed as the Public Service AI
Lead to support the safe and responsible use of AI.
data. However, the traditional approach carries a long
This includes coordinating system leadership and
lag-time because it is not always immediately clear
standard setting, stewarding AI uptake, supporting
whether a traveller has left or arrived permanently.
agencies in their AI initiatives, and collaborating
To mitigate this lag, Stats NZ developed a machine
with providers to ensure value for money.
learning driven estimation model for migration, which
The GCDO is leading a Public Service AI work
looks at various attributes of travellers, available in
programme based on six pillars: governance and
administrative data gathered by the New Zealand
guardrails, capability and innovation, and social
Customs Service (including passport data) and
licence and global voice. These pillars guide the
estimates the probability that a given border-crossing
focus of the AI work programme, promoting
will result in migration.
transparency, accountability, and trust in Public
Service AI initiatives, while ensuring the safe and
This is a pioneering use of AI, and other countries have
responsible adoption of AI.
sought out StatsNZ’s expertise in deploying their own
modelling.
Collaboration and Innovation
The Public Service has formed partnerships with the business sector to leverage broader resources and adhere
to international best practices. Government agencies are piloting and deploying AI technologies while
maintaining stringent governance, security, privacy, and accountability standards. Examples include chatbots
for guidance, document drafting tools, meeting summaries, and search functions. AI systems are also used for
digital detection and analysis of large image datasets, retinal scanning, detection and diagnosis, automated
data analysis, sentiment analysis, text and data analysis, factors modelling, submissions, and fraud detection.
The Public Service is embedding AI by…
…growing
Establishing an AI Community of Practice for digital practitioners, which allows for the
capabilities… sharing and discussion of AI use across agencies.
…guiding
Publishing an AI Toolbox to enable the sharing of artefacts and tools that can be used across
use…
multiple agencies.
Adopting an All-of-Government, multi-year digital investment approach to achieve
…and
efficiencies and modernise services, including investments in AI systems, infrastructure, and
investing
capabilities to enable the Public Service to harness AI's transformative potential, drive
wisely.
innovation and enhance service delivery.
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AI for efficient, patient-focussed healthcare
Implemented well, AI offers many potential benefits to the delivery of healthcare in New Zealand
.3 For
patients, AI-enabled healthcare will improve access to health services, deliver faster, accurate diagnostics, and
more personalised care. For clinicians, it will mean more time with patients and less time on administrative
tasks. An AI-enabled health system could also make better use of New Zealand’s world-leading AI medical
technology firms, driving further innovation and investment in domestic talent and growing the economy.
AI is changing how healthcare is delivered
Administrative tools
Diagnostic software
Clinical augmentation
AI can already ease the
AI is increasingly used to
In time, AI will be used to augment
administrative burden in the
assist with rapid, accurate
clinical decision-making, increasing
healthcare system, meaning more
diagnoses. Existing examples
patient access to more timely,
time and more resources available
include medical imaging
personalised healthcare. This could
for direct patient care. Examples
analysis, cancer detection,
include data-driven insights from
include AI-powered clinical note-
dermatology, and digital
wearable healthtech, digital twins for
taking, and AI chatbots for patient
pathology.
simulated medical interventions, and
inquiries (e.g., booking
treatment plans tailored to individual
appointments).
patients.
AI can ease pressures in the healthcare system
As is the case in many advanced economies, New Zealand has an ageing population, which adds demand on
healthcare systems; older people often have higher care needs, with increased prevalence and complexity of
health conditions. At the same time, New Zealand is grappling with healthcare workforce shortages and
infrastructure challenges. In primary care, there is a national shortfall of almost 500 GPs, which is expected to
roughly double in the next decade. In secondary care, challenges with wait times for emergency departments
and access to specialist assessments have led to these becoming key targets for the health system.
These pressures are set to continue, and solutions will be complex. In this context, current AI technology is not
a panacea, but it can make a significant, near-term, and cost-effective impact by automating time-intensive
low-value tasks and allowing a reprioritisation of workforce capacity and an underscored focus on patient care.
Health New Zealand is already testing and developing AI tools to deliver better patient-centric care, including:
• automated note taking apps for clinical settings, designed to free up clinicians’ time to focus on patients,
• tools that could support timely access to diabetic retinopathy screening, and
• radiology AI tools to ensure patients with serious medical conditions are identified quickly.
To support the safe and effective adoption of AI into the national healthcare system, the Ministry of Health is
leading a cross-sector work programme on Precision Health which includes AI as a focus. Health New Zealand
has already developed robust governance around the use of AI, establishing the National AI and Algorithm
Expert Advisory Group, which draws on a wide range of AI expertise to review and approve the deployment of
AI solutions within Health NZ.
3 A 2023 report from the Office of the Prime Minister’s Chief Science Advisor –
Capturing the benefits of AI in
healthcare for Aotearoa New Zealand – sets out a range of opportunities to capture the benefits of AI in health,
as well as ways to manage the associated risks.
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Creating a regulatory framework that supports locally designed solutions
New Zealand is home to a handful of world leading medical technology firms specialising in AI, including several
startups spun out of academic institutions. Built on a solid foundation of AI science and research expertise,
these firms have successfully developed and brought to market AI tools which are having a profound impact on
the way that clinicians are diagnosing and treating patients around the world. These firms often export their
product rather than making domestic offerings, and Government procurement rules are changing in support of
better outcomes for New Zealanders and local tech firms.
For these firms, New Zealand’s lack of enabling regulation with respect to AI medical technology has been cited
as a challenge, both by AI firms and their prospective buyers in the national healthcare system. Both groups
need certainty that these products are clinically validated and safe for use in New Zealand. The Government is
actively exploring options to introduce risk-based, proportionate regulation for AI medical technology that is
harmonised with international approaches, so that New Zealand firms can confidently develop products for use
both at home and abroad.
New Zealand firms are leading the way in AI-enabled healthcare solutions
Toku
was founded by Dr Ehsan Vaghefi and Dr David Squirrell in
2019. It developed AI to analyse eye exam scans, which can
identify health conditions such as cardiovascular and kidney
disease. Toku is used in clinical settings in New Zealand, Australia,
the US, and the UK.
Formus Labs, founded by Dr Ju Zhang and Prof. Thor Besier in 2016,
developed software to make it easier for orthopaedic surgeons to
plan for and execute successful operations. It created the world’s
first AI-automated 3D planner for joint replacement surgeries,
significantly speeding up the pre-operative process by creating
personalised surgical plans.
Alimetry was established in 2019 by Prof. Greg O’Grady and Dr
Armen Gharibans and is focussed on supporting clinicians in the
care of patients with gastric conditions. It developed a non-
invasive wearable device that measures the electrical activity
produced by the gut. It then uses AI to isolate and analyse this
activity to deliver useful insights to clinicians to aid in the diagnosis
and treatment of patients.
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Annex
Background materials
What is Artificial Intelligence?
AI is the ability of a computer system to perform tasks that would
normally require human intelligence.
The OECD defines an AI system as a
AI
machine-based system that, for explicit or implicit objectives, infers, from
the input it receives, how to generate outputs such as predictions,
Machine
Learning
content, recommendations, or decisions that can influence physical or
virtual environments. Different AI systems vary in their levels of autonomy
Deep
and adaptiveness after deployment. AI can process and produce
Learning
information faster than is humanly possible, weigh and select options,
make predictions, and create solutions and content by utilising patterns
and data.
GenAI
AI is commonly considered a general purpose technology, in the sense
that it can be deployed in an almost limitless range of settings and have an aggregate impact on economies. There
have been fewer than 30 such technologies throughout human history, including the steam engine, electricity,
and mass production.
In the space of a few years, GenAI has moved from a concept into an industry predicted to generate up to
USD$4.4T global corporate profits annually, where users can, with a few prompts, generate creative text, image,
and video content, instantaneously. Other rule and logic-based AI systems have been around for decades, such as
those used for playing online chess. More modern AI systems include machine- and deep-learning, which support
applications such as facial recognition, speech detection, and cybersecurity systems. AI depends on access to
large datasets and the continuous streams of data. The technology requires high computing processing power
and specially developed software or programmes.
OECD AI Principles
This Strategy rests on the OECD AI Policy Recommendations, which help policymakers ensure
that national AI policy maximises benefits and minimises risks. Behind these
recommendations are the OECD AI Principles. Together these form the first intergovernmental
standard on AI, designed to ensure that AI use is innovative, trustworthy, and respect human
rights and democratic values.
AI Policy Recommendations
AI Values-based Principles
1. Investing in AI research and development
1. Inclusive growth, sustainable development and
2. Fostering an inclusive AI-enabling ecosystem
well-being
3. Shaping an enabling interoperable governance
2. Human rights and democratic values, including
and policy environment for AI
fairness and privacy
4. Building human capacity and preparing for labour
3. Transparency and explainability
market transformation
4. Robustness, security and safety
5. International co-operation for trustworthy AI
5. Accountability
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