Uptake focus: New Zealand’s strategic approach
This strategy deliberately emphasises AI adoption and application rather than foundational AI development, reflecting both economic reality and strategic opportunity for New Zealand’s context.
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Economic rationale for adoption focus
Foundational AI model development requires enormous capital investments, often hundreds of millions of dollars, and access to global-scale datasets that are predominantly controlled by large technology companies. The economics of AI development exhibit strong network effects and economies of scale that structurally favour larger economies and corporations.
New Zealand’s competitive advantage lies not in competing with Google, OpenAI, or other foundational model developers, but in becoming sophisticated adopters who can quickly identify, adapt, and deploy AI solutions to local challenges. This approach allows New Zealand businesses to access cutting-edge AI capabilities without bearing the full cost of development whilst focusing resources on areas where we can add unique value.
Strategic benefits of the adoption approach
By prioritising adoption, New Zealand can achieve several strategic objectives more effectively than through attempting foundational development. We can more rapidly realise productivity benefits across the economy without waiting for local AI development to mature.
We can develop expertise in AI governance, ethics, and application that positions us as thought leaders in responsible AI use. We can create niche applications that leverage our unique advantages such as agricultural expertise, and healthcare innovation, whilst building on global AI foundations.
Government’s enabling role
The Government’s role in this approach is to reduce barriers to adoption, provide clear regulatory guidance, build necessary capabilities, and ensure that adoption occurs responsibly.
Leveraging AI Science, Innovation and Technology Strengths
An adoption focus does not preclude New Zealand from developing AI or contributing to global AI development through research institutions, innovative applications, or specialised solutions. New Zealand already has pockets of expertise, and the Government is working to ensure that this expertise brings benefits for all New Zealanders.