Why New Zealand needs an AI strategy

Government’s role in building confidence

The Government supports AI adoption in the private sector by creating the conditions necessary for investment and success from AI. This means reducing uncertainty with a commitment to stable policy, to proactively remove unintended and unwanted barriers to AI use, and clear regulatory guidance for businesses to harness AI with confidence.

When businesses understand the rules of the game and trust that government settings will remain stable and supportive, they are more likely to invest in AI adoption (Harris, 2025).

Government support can significantly influence private sector AI adoption. Countries with clear AI strategies and supportive policy frameworks consistently outperform those with fragmented or restrictive approaches (Denford et al., 2023). The Government’s signal of support acts as a catalyst for increased social licence, encouraging not just local investment but also attracting international capital and expertise.

Transforming industries and enhancing productivity

• AI offers unprecedented opportunities to enhance productivity across New Zealand’s key economic sectors.
• In agriculture, AI-powered precision farming techniques can optimise crop yields, whilst also helping to reduce environmental impact.
• In healthcare, AI diagnostic tools can improve patient outcomes and administrative tools can free up busy clinicians’ time to focus on patients, whilst also reducing cost.
• In education, AI tutoring systems can provide personalised learning experiences that can help to improve student achievement.
• In business, AI can process vast amounts of data to generate insights that were previously impossible; automate routine tasks that free up human workers for higher-value activities; and create entirely new products and services that generate additional revenue streams.

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