TLDR: New Zealand has launched its first national Artificial Intelligence (AI) Strategy, titled ‘Investing with Confidence,’ on July 9, 2025. The strategy aims to significantly boost productivity and economic growth, with projections of AI contributing up to $76 billion to the GDP by 2038. While welcomed by the business sector for providing clarity and encouraging investment through a ‘light-touch’ regulatory approach, the strategy has drawn criticism from AI researchers and trade unions for being ‘worryingly light’ on ethical and societal issues, particularly concerning the absence of new legislation and worker protection.
Wellington, New Zealand – On July 9, 2025, New Zealand officially unveiled its inaugural national Artificial Intelligence (AI) Strategy, aptly named ‘Investing with Confidence.’ This landmark initiative is designed to propel the nation’s productivity and economic growth while fostering responsible and safe AI development across various sectors.
Science and Technology Minister Dr. Shane Reti emphasized the critical timing of this launch, noting that New Zealand was the last OECD country to release a dedicated AI strategy. ‘Artificial intelligence represents one of the most significant technological opportunities of our time,’ Reti stated. ‘For New Zealand, embracing AI is not merely an option; it is essential for maintaining our competitiveness, attracting global talent, and delivering the productivity gains our economy needs to thrive.’ The government projects that AI could contribute an estimated $76 billion to New Zealand’s GDP by 2038, underscoring the immense economic potential the strategy aims to unlock.
The ‘Investing with Confidence’ strategy adopts a ‘light-touch’ and principles-based regulatory approach, opting to utilize existing legislation and regulations to manage risks and privacy concerns rather than introducing new laws. This approach is intended to reduce uncertainty and remove unintended barriers, thereby encouraging greater investment in AI adoption by businesses. The strategy positions New Zealand as a ‘sophisticated adopter’ of AI technologies, focusing on leveraging existing innovations rather than solely developing foundational models.
Key commitments within the strategy include expanding AI expertise within New Zealand, supported by significant budget allocations. This year’s budget includes over $200 million for tuition and training subsidies and more than $60 million for STEM and priority areas. The government also highlights New Zealand’s unique position to apply AI in innovative ways tailored to local needs, citing examples such as AI-powered precision farming techniques to improve agricultural productivity and diagnostic technologies to enhance healthcare outcomes.
The business sector has largely welcomed the strategy. Simon Bridges, Chief Executive of the Auckland Business Chamber, commented that the strategy provides businesses with ‘the clarity and confidence necessary to invest in AI.’ He added, ‘This removes unintended barriers and clears up uncertainty. Whether you’re a manufacturer in Onehunga or a tech start-up in Takapuna, it’s about enabling real productivity gains.’ BusinessNZ also expressed strong support, believing the potential enhancements in innovation, productivity, and wellbeing could benefit all sectors positively.
However, the strategy has also drawn significant criticism, particularly regarding its approach to ethical and societal implications. Dr. Andrew Lensen, a senior lecturer in Artificial Intelligence at Victoria University, described the strategy as ‘worryingly light’ on addressing ethical and societal issues, despite its heavy focus on economic growth opportunities. ‘The strategy suggests that new legislation is unnecessary, which I, and many other AI researchers, disagree with,’ Lensen stated. ‘Having ‘principles’ is not nearly sufficient to reduce AI-induced harm, bias, and inequity. We need clear legislation and well-resourced enforcement mechanisms to ensure AI does not further harm New Zealanders.’ Richard Wagstaff, president of the Council of Trade Unions, echoed these concerns, cautioning that the ‘light touch’ approach would fail to protect workers from the risks posed by AI, particularly those in clerical and administrative roles at high risk of displacement.
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In conjunction with the strategy, the government has also released ‘Responsible AI Guidance’ to support businesses in the safe and innovative use of AI, aligning New Zealand’s approach with the OECD’s AI Principles, which include respecting the rule of law, human rights, democratic values, fairness, privacy, robustness, security, and safety.
