TLDR: New Zealand has unveiled its first national Artificial Intelligence (AI) Strategy, notably developed with the assistance of AI itself. The strategy, launched in July 2025, aims to accelerate private sector AI adoption and innovation, boost national productivity, and foster a competitive economy. It addresses key barriers to AI uptake, including regulatory uncertainty, skill shortages, and a lack of understanding, while positioning New Zealand as a sophisticated adopter of AI technologies.
The New Zealand Government has officially launched its inaugural national Artificial Intelligence (AI) Strategy, a landmark document designed to propel the nation into a new era of digital advancement. Uniquely, the 22-page strategy document, titled ‘New Zealand’s Strategy for Artificial Intelligence: Investing with Confidence,’ was itself crafted with the assistance of AI, a move highlighted by Minister of Science, Innovation and Technology Dr. Shane Reti in the opening foreword. Dr. Reti stated, ‘This strategy document was written with the assistance of AI. This demonstrates our commitment to ‘walk the talk’ on AI while maintaining appropriate safeguards for sensitive information.’
This proactive approach has been lauded by industry experts like Nick Catino, global head of policy at payroll and compliance platform Deel, who views it as a powerful signal for promoting real-world AI adoption. Catino emphasized, ‘I thought it was a strong signal that the New Zealand AI strategy mentioned several times that they used AI to help research and write the report.’ He further stressed the importance of practical application, comparing it to the widespread adoption of the internet and computers in the 1990s, asserting that ‘there’s no replacement for using it.’
The strategy, released in July 2025, comes as New Zealand was the last OECD country to publish such a national AI framework. It underscores the government’s commitment to creating an environment where businesses can confidently adopt and innovate with AI technologies. The economic potential is significant, with industry research from Microsoft (2024) suggesting that generative AI alone could contribute an additional $76 billion to the New Zealand economy by 2038, representing over 15% of its GDP.
Rather than focusing on foundational AI model development, which requires immense capital and global-scale datasets, New Zealand’s strategy emphasizes becoming a ‘sophisticated adopter.’ This involves identifying, adapting, and deploying AI solutions to address local challenges, particularly in sectors like agriculture, healthcare, and education. This approach allows New Zealand businesses to leverage cutting-edge AI capabilities without the full cost of development, while building expertise in AI governance, ethics, and application.
The strategy identifies several key barriers to AI uptake in New Zealand and outlines governmental actions to overcome them:
Regulatory Uncertainty: The government is adopting a ‘light-touch and principles-based approach’ to AI policy, updating existing technology-neutral frameworks as needed. New Zealand is a signatory to the OECD AI Principles, providing an ethical framework for responsible development.
Perceived Complexity, Ethics, and Risk: To demystify AI, the Ministry of Business, Innovation and Employment (MBIE) has published ‘Responsible AI Guidance for Businesses,’ a companion document offering advice on managing risks and meeting regulatory obligations.
Lack of Understanding and Perceived Value: The strategy itself aims to raise awareness and understanding of AI’s potential applications and benefits, particularly among Small and Medium Enterprises (SMEs). A 2024 Spark New Zealand survey revealed that 68% of SMEs had no plans to evaluate or invest in AI technology, a figure significantly higher than Australia’s 38%.
Lack of AI Skills: Budget 2025 allocated significant funding, including $213 million for tuition and training subsidies and $64 million for STEM and priority areas, to build domestic AI capacity. Universities are offering specialized AI programs, and initiatives are underway to upskill business mentors and public servants.
New Zealand already boasts a flourishing AI ecosystem with innovative solutions. Examples include NIWA’s AI partnership for whale watching tourism, Te Hiku Media’s AI-powered automatic speech recognition for te reo Māori, Toku’s AI for eye exam analysis in healthcare, and Halter’s AI-integrated wearable technology for livestock management in agriculture.
Globally, discussions around AI have shifted from solely responsible innovation to a focus on ‘winning the AI race’ and securing domestic talent and industry. Catino noted, ‘The AI race is the new space race, and you’ve seen practically every other country around the world follow suit, where now the focus is on the talent, the industry and the infrastructure.’ New Zealand’s strategy aligns with this, prioritizing talent development and attracting high-skilled foreign talent.
The government is also fostering international collaboration, such as the $12 million Singapore-New Zealand AI for Healthy Ageing Initiative, and is reforming investment policies to attract Foreign Direct Investment (FDI) in AI.
Also Read:
- Japan Accelerates National AI Strategy with Basic Plan Due by Winter 2025
- Australian Job Market Outlook: AI’s Impact on Vulnerable and Resilient Sectors by 2050
In conclusion, New Zealand’s AI Strategy marks a critical step in harnessing AI’s transformative power for national prosperity. By leading with example through AI-assisted strategy development, focusing on practical adoption, and addressing key barriers, the government aims to position New Zealand as a confident, capable, and responsible leader in the global AI economy.
