NZ Unveils First AI Strategy to Drive Productivity and Global Competitiveness

New Zealand has taken a major step towards securing its place in the global AI race with the official launch of its first national Artificial Intelligence Strategy. Announced by Science, Innovation and Technology Minister Dr Shane Reti, the new strategy is set to unlock up to $76 billion in additional GDP by 2038, highlighting the Government’s intent to prioritize AI-driven economic transformation.

A Wake-Up Call for AI Readiness

Dr Reti emphasized that while AI holds enormous promise for New Zealand’s productivity and global competitiveness, the country is currently lagging behind other advanced small economies in terms of AI readiness. Many New Zealand businesses are yet to engage meaningfully with the technology, a gap the Strategy aims to close.

“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,” said Dr Reti during the launch.

Light-Touch Regulation to Empower Innovation

The strategy outlines a “light-touch” regulatory approach, signaling that the Government will focus on enabling rather than constraining AI adoption. It aims to build confidence within the private sector by providing clear regulatory guidance, reducing barriers to innovation, and establishing a climate of trust and safety around AI deployment.

Dr Reti stressed that AI adoption should not be delayed due to fear or uncertainty:

“The Government’s role in AI is to reduce barriers to adoption, provide clear regulatory guidance, and promote responsible AI adoption.”

Instead of creating new legislation, the Government will rely on existing laws—including those covering privacy, consumer rights, and human rights—to manage AI-related risks and ethical concerns.

Harnessing Kiwi Innovation for Global Impact

The Strategy draws attention to the unique opportunities for AI in New Zealand’s industries, particularly in precision agriculture, healthcare diagnostics, and environmental sustainability.

“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,” said Dr Reti.

The strategy identifies AI not just as a tech trend, but a transformative tool that can help local businesses scale, increase productivity, and offer globally competitive solutions.

Aligning with Global Principles, Building Local Trust

In alignment with the OECD AI Principles, New Zealand’s AI Strategy underscores the importance of international cooperation in developing shared ethical standards and global AI governance. The Government plans to work closely with international partners to shape future norms and regulations.

Domestically, the rollout includes a dedicated Responsible AI Guidance document for businesses. This guidance serves as a practical toolkit for Kiwi companies to navigate AI’s ethical and legal considerations while promoting innovation.

“New Zealanders will need to develop trust and give social licence to AI use,” Dr Reti noted. “The Responsible AI Guidance will help businesses safely use, develop and innovate with the technology.”

Strategy Now Live on MBIE Website

Both the Artificial Intelligence Strategy for New Zealand and the Responsible AI Guidance for Businesses are now publicly available on the Ministry of Business, Innovation and Employment (MBIE) website. These documents mark the beginning of a national movement towards responsibly embracing one of the 21st century’s most transformative technologies.

As New Zealand charts its AI path, the message is clear: smart, ethical, and confident adoption of AI is essential to the nation’s future economic success.