NZ Unveils $70m AI Research Investment to Drive Growth and Innovation

New Zealand has announced a landmark $70 million investment in artificial intelligence (AI) research and innovation, with the goal of boosting the country’s technological capability, accelerating commercialisation, and fuelling economic growth. The funding, spread over seven years, will be channelled through the New Zealand Institute for Advanced Technology, a hub established to support next-generation scientific and technological development.

The announcement was made by Science, Innovation and Technology Minister Dr Shane Reti, who underscored the importance of New Zealand moving swiftly to embrace AI as global competitors ramp up their own investments.

Building Capability and Competitive Advantage

“AI is transforming economies worldwide, and New Zealand must be bold and seize the opportunities,” Dr Reti said.

He emphasised that the funding would strengthen collaboration between researchers, universities, and businesses, enabling the development of world-class expertise and positioning New Zealand as a global leader in advanced AI applications.

The initiative will also aim to fast-track the commercialisation of AI breakthroughs, ensuring that New Zealand can generate high-value jobs, attract international partnerships, and compete effectively in emerging global markets.

Current AI Success Stories in New Zealand

Dr Reti highlighted New Zealand’s expanding AI research base, particularly in precision health and agriculture, two sectors where AI technologies are already demonstrating transformative potential.

One example is the recent partnership between the Auckland Bioengineering Institute and the Oden Institute at the University of Texas, supported by the Government’s Catalyst Fund. The collaboration focuses on developing real-time digital models of the human body, also known as digital twins, which can personalise treatment, reduce hospital costs, and open lucrative new licensing streams.

According to project estimates:

• AI-driven health solutions could deliver $80–$160 million in annual healthcare savings.

• Improved management of chronic diseases could save up to $32 million annually in hospital costs.

• Licensing of digital twin tools could generate up to $16 million a year in revenue.

“These kinds of projects show how ambitious, world-class AI research can deliver both economic and social benefits,” Dr Reti noted.

Advice from the Prime Minister’s Council

The decision to invest heavily in AI research follows a recommendation from the Prime Minister’s Science, Innovation and Technology Council, which has been advising on how to build a future-focused and resilient national science ecosystem.

As part of its expansion, the Council has welcomed Grant Wright, an expert in digital transformation, product innovation, and AI technologies, as its newest member. His appointment is expected to strengthen the Council’s ability to guide AI strategy and ensure investments target areas with the greatest long-term impact.

Positioning New Zealand on the Global Stage

Dr Reti stressed that New Zealand must not only adopt AI technologies but also develop homegrown expertise capable of producing cutting-edge solutions for international markets.

“This $70 million investment is about scaling up the ambition. It is about building capability, creating opportunities for Kiwi researchers, and ensuring that New Zealand is not left behind in the AI race,” he said.

By combining academic research, industry collaboration, and government backing, the initiative is expected to strengthen New Zealand’s position as an innovation-driven economy, reduce reliance on imported technologies, and generate sustainable economic growth through high-value exports.

Looking Ahead

With AI already reshaping industries from healthcare to logistics and finance, the Government believes this investment is a timely step toward ensuring New Zealand’s prosperity in the digital era. The initiative also aligns with the broader strategy to lift productivity, reduce costs, and improve outcomes for New Zealanders, while fostering a globally competitive science and technology ecosystem.