National Strategy and Guidance to Strengthen Your Business

On behalf of the New Zealand government, Dr. Hong Shane Rech announced the first National Strategy for Artificial Intelligence (AI Strategy) on July 8, 2025.

New Zealand has previously slowed other small, advanced economies in developing and releasing strategies. For example, Singapore's first AI strategy was released in 2019, and version 2.0 was released in 2023. Until now, New Zealand has been the only OECD country without a formal AI strategy.

The release of the AI ​​strategy demonstrates the government's commitment.

• For international partners, New Zealand is open for business (not the basic model) for the adoption and application of AI. and

• For New Zealanders, “It's time for New Zealand to power AI” and doing so is not only okay, but they need to take advantage of everything it has to offer.

We have seen this kind of signaling from the government. We have seen this lead to ocean changes in the adoption of other emerging technologies in New Zealand. In 2012, the government released its “Cloud First” policy (updated in 2023) to move the New Zealand business community from a large part of its cloud adoption to global leaders, especially the SME community. This government expectation and hope from the technology industry is undoubtedly that this AI strategy will deliver the same results.

The joint release of new responsible AI guidance for businesses will help businesses take responsibility and effectively adopt AI. This guidance encourages organizations to define the purpose of using AI, engage with stakeholders, safely test their products, and align AI objectives with internal policies. The guidance also recommends building a strong governance structure and ensuring compliance with existing regulations, among other useful information.

The strategy outlines the government's commitment to creating an environment where New Zealand businesses can confidently adopt AI technology and innovate.

The AI ​​strategy recognizes the limitations in New Zealand in terms of capital (human and finance) and size. We also recognize New Zealand's strengths. This recognizes that we can quickly move, focus on opportunities and leverage a stable, advanced regulatory environment for AI development and testing, backed by strong governance and commitment to responsible innovation. In conjunction with recently established investments New Zealand (a crown entity aimed at becoming a one-stop shop to attract foreign investment in New Zealand), the government has fixed its strategy of being attractive enough to develop innovators, capital and talent.

Is it enough?

With no specific timelines, milestones or measurable criteria for success, AI strategies appear to provide an overall encouragement for AI use rather than a clear guidelines for “practical adoption.” Again, when comparing the AI ​​strategy to Singapore's version 2.0, there appears to be a lack of details on how the government will encourage intake and attract talent, capital and technological innovators to New Zealand.

Perhaps our version 2.0 will address those very points, and it hopes to do it in a short period of time.

In the meantime, here are some key points from the AI ​​strategy:

• New Zealand prioritizes adoption rather than developing basic models.: Naturally, New Zealand has not signaled a slower run to compete with Google, Openai, Meta and others on the development of the Foundation model. The foundation modeler has welcomed its establishment in New Zealand and shows that it is likely to meet a high percentage of recruitment across the business sector.

• New Zealand is not going to enact new laws: If there is uncertainty about the regulatory approach the government will take, adoption and development of emerging technologies may be slow. The AI ​​strategy confirms that New Zealand takes a “light touch” and “principles-based” approach to AI policies and relies on existing regulatory frameworks such as privacy, consumer protection and human rights.

• New Zealand needs to address the skills gap: AI strategy recognizes New Zealand faces a lack of AI expertise. The University of New Zealand helps to bridge the gap by building a “future-ready” workforce through its specialized programme, pointing to investments in tuition, STEM and young people support to boost registration and career pathways, along with existing private sector investments by AI vendors. However, unlike other advanced economies, no new spending has been announced that focuses solely on AI.

Where from here?

Private companies have a green light to use AI to realize productivity benefits. The government has actively investigated the use of AI in the public sector, tested its usefulness and set an example.

Version 2.0 of the AI ​​strategy is under development, hoping to seduce AI companies to invest in New Zealand, and encourage AI talent to come and flow. In the meantime, businesses can take steps to safely and ethically adopt AI technology to leverage their power. In doing so, businesses need to:

1. Clearly define the purpose of AI:What do you want AI to achieve in your organization? Make sure your intended use is legal and aligns with your business goals.

2. Prepare for adoption: Identify current inefficient processes and processes that may benefit from AI. Engage stakeholders for input and test solutions in a controlled environment.

3. Build internal functions: Set up a dedicated team to identify business goals and values, develop internal principles that guide the responsible ethical use of AI, and develop consistent principles and terminology throughout the business.

4. Establish a governance framework: Form a governance team to oversee risk, compliance and regulatory integrity, maintain transparent communication with stakeholders and build trust.

5. Ensures data quality and ethical use: Use clean and fair data in AI systems and avoid deploying AI in areas where human judgment is important to protect individual rights and well-being.

6. Keep existing laws in front of your mind: Among other laws, we will ensure laser focus on the impact of the 2020 Privacy Act.

Our dedicated team of technology law specialists are actively assisting companies with their AI journey – from boards and CEOs grappling with governance frameworks of AI technology, Privacy Officers with their obligations under the Privacy Act, Chief Risk Officers with their analysis and management of risks, General Counsel with their policy development management, and legal operating model designs, HR managers with the potential impact on workforces, CIOs with their data protection strategies, and CTOs with their procurement and a journey of transformation. If you need assistance during your AI journey, don't hesitate to contact a professional.

This article was co-authored by Grace Chen, an intern on the technology team.