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• The Colab Team

New Zealand Finally Has an AI Strategy — Here's What It Means for Business

#AI strategy#government#New Zealand#policy

On 8 July 2025, New Zealand released its first national AI strategy: “New Zealand’s Strategy for Artificial Intelligence: Investing with Confidence.”

Until then, we were the only OECD country without one.

Better late than never? Perhaps. But the strategy takes a distinctly Kiwi approach that’s worth understanding if you’re running a business here.

The headline numbers

The strategy is built around some compelling economic projections:

  • $76–108 billion potential annual contribution to the economy by 2038
  • 15%+ of GDP from generative AI alone
  • $17 million allocated through the Responsible AI Adopt programme for SMEs

These figures come from research by Microsoft and Accenture, and they’re ambitious. But they’re also achievable — if businesses actually adopt and scale AI effectively.

Adoption over development

Here’s what makes NZ’s approach different: we’re betting on adoption, not invention.

The strategy explicitly focuses on implementing proven AI solutions rather than trying to compete with the US and China on building foundational models. For a small country with limited R&D budgets, this is pragmatic.

What it means for businesses: you don’t need to build AI from scratch. The tools exist. The challenge is knowing which ones to use and how to implement them effectively.

Light-touch regulation

New Zealand has chosen a “principles-based” approach to AI governance. In practice, this means:

  • No new AI-specific laws (at least for now)
  • Reliance on existing frameworks: privacy, consumer protection, human rights
  • Guidance documents rather than mandates
  • Focus on industry self-regulation

This is good news for businesses wanting to move quickly. You won’t face the compliance burden that companies in the EU are dealing with under the AI Act.

But it also means the responsibility falls on you to implement AI ethically and safely.

What the government is actually doing

Beyond the strategy document, there are concrete initiatives:

Funding and support

  • $213 million for tuition and training subsidies (Budget 2025)
  • $64 million for STEM and priority areas
  • $17 million Responsible AI Adopt programme specifically for SMEs
  • 15% R&D tax credits for AI-related investment (over $611 million in approved projects since 2019)

Governance structures

  • AI Expert Advisory Panel (appointed June 2025)
  • New AI training programmes for public service agencies
  • Public Service AI Assurance Regime in development

SME-specific guidance

The Responsible AI Guidance for Businesses document addresses practical implementation steps for smaller organisations.

The Treaty dimension

Uniquely among OECD AI strategies, New Zealand’s incorporates Treaty of Waitangi obligations. The strategy acknowledges:

  • Māori data sovereignty concerns
  • The need for AI systems that work for all New Zealanders
  • Lower trust in AI among Māori (31%) and Pacific communities

This isn’t just political correctness — it’s practical. AI systems trained on biased data produce biased outcomes. Building inclusive AI from the start is easier than fixing problems later.

What’s missing

The strategy has gaps:

No specific targets or timelines. Unlike some international strategies, there are no concrete metrics for success beyond the broad economic projections.

Skills pipeline unclear. While there’s funding for training, there’s no clear plan for addressing the 32% of businesses who cite skills as their main barrier to AI adoption.

Governance frameworks lagging. Less than 10% of NZ organisations have mature AI governance in place. The strategy acknowledges this but doesn’t mandate solutions.

What this means for your business

The opportunity

  • Government is actively encouraging AI adoption
  • Funding and tax incentives are available
  • Light regulation means you can move quickly

The responsibility

  • You need your own AI governance framework
  • Data quality and privacy compliance are on you
  • Ethical implementation is expected, even if not mandated

The practical steps

  1. Review the SME guidance — it’s actually useful and practical
  2. Explore R&D tax credits — if you’re investing in AI implementation, you may qualify
  3. Build internal capability — the skills gap won’t close itself
  4. Start with governance — even a basic framework puts you ahead of 90% of organisations

The bottom line

New Zealand’s AI strategy is pragmatic: focus on adoption, keep regulation light, provide support for businesses getting started.

The $76 billion opportunity is real. But it won’t capture itself. The businesses that will benefit most are those that move beyond experimentation and actually scale AI across their operations.

That’s where most are stuck. And that’s exactly the problem we help solve.

Need help making sense of AI for your business? Let’s talk.

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