New Zealand’s Relaxed Approach to AI Technology Could Pay Dividends

New Zealand has announced a national artificial intelligence (AI) strategy that prioritises digital innovation while making sure that businesses do not fall behind global competitors.

The government is keen to convince both small and large businesses to embrace AI with confidence. It has backed its pitch by using the success of technology in international jurisdictions as a reference.

Science, Innovation and Technology Minister Dr Shane Reti believes AI can transform the national economy and the projected numbers back up that claim. Adopting AI in business could add a whopping $76 billion to the nation’s gross domestic product (GDP) by 2038.

New Zealand is not the most sophisticated country when it comes to using AI, but the government is determined to change the narrative.

Taking a ‘Light-touch’ Approach

The New Zealand government is taking a ‘light-touch approach’ to developing AI policy, but in a way that aligns with the principles of the Organisation for Economic Co-operation and Development (OECD).

The government wants to guide businesses using the existing legal frameworks that prioritise privacy, consumer protection and human rights.

The plan makes sense considering that throwing a bunch of rules in their way could limit their creativity, which is bad news, especially in a space like AI that’s rapidly gaining traction.

But they also need to weigh the pros and cons. There are researchers and stakeholders who have their reservations about the lawless use of AI in businesses, and they could be on to something.

If the government doesn't set up strict regulations, there is nothing stopping the technology from going rogue and obliterating whatever trust the public has in both AI and the powers that be.

However, Reti is not letting up in his call for businesses to put their faith in AI. He claims that the government is ready to support their journey with policies that support rather than restrict innovation.

“My message to our business community is: invest with confidence in AI,” Reti said.

“The Government wants greater use of AI in business and stands ready to support your AI journey through guidance and policies that enable rather than constrain innovation.”

Reti does not want New Zealand businesses to focus on becoming AI pioneers or developers. That space is already overrun by technology giants from the United States and China.

The New Zealand government wants businesses to adopt AI innovations and apply the technology across various sectors, including agriculture, healthcare and education.

“New Zealand's strength lies in being smart adopters,” Reti said in a statement.

“From AI-powered precision farming techniques to diagnostic technology in healthcare, Kiwi businesses can tailor AI to solve our unique challenges and deliver world-leading solutions.”

How AI Can Build Confidence in Business

The fear of potentially flying blind in a vast sector has been one of the major reasons why New Zealand has been a tad reluctant to rely on technology, but AI removes that uncertainty.

There are several sectors where AI would fit in like a glove, including the online sports betting industry. The sector is the perfect platform for everyone to see how AI can improve the efficiency of businesses across all levels.

Many of the biggest sports betting brands in the world are already leaning heavily on AI for numerous elements of their operations.

The best sports betting apps in New Zealand have had a taste of AI, but there’s a lot that they can learn from other international jurisdictions.

With the country in the process of revamping its online gambling sector, throwing AI into the mix could have tangible benefits across the board.

One of AI’s tricks is its ability to sift through vast data to help punters make informed decisions. The tech is also versatile enough to help on the business end of things.

Many businesses, especially small and medium-sized enterprises (SMEs), are not sure about how to invest in AI to improve productivity.

Some companies are not even interested in the possibilities because they believe it’s a luxury reserved for the top guns with huge budgets and even bigger tech departments.

But according to Catherine Beard, Director of Advocacy at BusinessNZ, they couldn’t be further from the truth. She believes AI is for everyone, and there are ways that smaller businesses can use the tech to bolster productivity.

Associate Professor Adrian Clark of the University of Canterbury is a fan of the national strategy, but only if it’s used to improve businesses rather than compete with large tech companies.