By Lewis Mugonyi
Introduction
Artificial intelligence (AI) is rapidly evolving globally, and its incorporation in various sectors of the economy makes it a pertinent policy issue for governments today and for the foreseeable future. Aotearoa New Zealand unequivocally illustrated this on the 11th of September when The Science, Innovation, and Technology Minister Judith Collins unveiled the AI Activator program focused on enhancing the espousal of Artificial Intelligence amongst New Zealand businesses. (Collins, 2024)
Automating cumbersome tasks in businesses through AI has the potential to ramp up efficiency in New Zealand’s primary sectors, particularly banking, agriculture, retail, and manufacturing. AI is predicted to contribute $76 billion to Aotearoa’s GDP by 2038 (Maasland & Parker, 2024). Will this next programme make the cut in maximising the value AI can have for New Zealand’s economy?
AI Activator
The AI Activator program was introduced by Callaghan Innovation (Te Pokapū Auaha), a government agency founded on the ideology that New Zealand’s success and welfare will not emerge out of traditional business models. The program will also be led in partnership with New Zealand Trade and Enterprise (NZTE).
The AI Activator program is championed on the premise of providing support and assistance to all growth-focused Kiwi businesses based on the current scale of their AI journey. It is also based on a highly impactful “activator” model developed by Callaghan’s Innovation for ecosystem-wide support. (Innovation, 2024)
Additionally, the initiative aims to achieve this goal by delivering access to research and development resources, rapid adoption of AI to boost productivity, AI expertise, AI tools for businesses, and interactive learning modules. Callaghan is eager to work hand in hand with New Zealand businesses that are interested in understanding the opportunities and risk mitigations for AI solutions. Sarah Sun, head of Digitial and AI Whare at Callaghan, emphasised that “there is something for everyone.” (Lynch, 2024)
GovGPT
Simultaneously, the Honourable Judith Collins introduced another new pilot program, GovGPT. GovGPT will act as a ‘digital front door’ in New Zealand, where people can conveniently and promptly access answers to their government-related inquiries online. This initiative will also simplify the process of obtaining reliable government information and assistance for businesses and individuals seeking to engage with government agencies.
Callaghan Innovation will run both GovGPT and the AI Activator Programme. These initiatives represent New Zealand’s strategic approach to AI, demonstrating the government’s commitment to cautiously maximising AI’s potential value for the economy and all New Zealanders.
Environmental Scan
According to the latest available data, the Global Artificial Intelligence Market is worth approximately $196.63 billion today, an increase of around $60 billion since 2022. This stark increase is primarily due to the growing real-world applications of AI technology, ranging from self-driving autonomous vehicles to content creation. New Zealand must jump on the trend of AI to compete on the global stage. (Howarth, 2024)
Notably, China currently leads the world in the adoption of generative AI. It is predicted that the most significant economic gains from AI will be in China through an estimated 26% boost to their GDP in 2030, equivalent to a total of $10.7 trillion. This significant boost will account for nearly 70% of the global economic impact of generative AI. (PwC, 2024)
The People’s Republic of China has a bold ambition of becoming the world’s AI leader by 2030. This is reflected in state-level plans that commenced in 2015, given AI’s prominence in China’s 14th Five-Year Plan (2021-2025), where it is prioritised as the leading ‘frontier industry’. (Kuo, 2024). Chinese companies have the highest adoption rate of AI. 58% of companies are already utilising AI, and 30% are exploring its integration, positioning the country as a global leader in AI implementation. (Haan & Watts, 2024)
China’s AI advancement thus far started through the state’s notices as a catalyst for brain science only. Subsequently, the interest has dispersed to other sectors through international AI alliances, recruitment of AI specialists, and co-authored research as the state looks abroad for inspiration in science and technology. New Zealand’s introduction of the above two initiatives is a step in the right direction. The New Zealand Government ought to use China’s case as a template as it illustrates that the gems of AI are hiding in plain sight.
Policy Implications of the AI Activator & GovGPT
Recent research by the AI forum and Victoria University of Wellington on the impact of AI in New Zealand uncovered that currently, 67% of New Zealand businesses use AI. In addition, 96% stated that the use of AI has led to the efficiency of workers, with 62% declaring operational savings of between $1,000 – $50,000. With the above in mind, the following are the projected policy implications of these initiatives:
- Economic Growth, Innovation, and Improved Access to Govt Services: AI is projected to bolster New Zealand’s GDP by $76 billion. Furthermore, both programs discussed above are set to scale up AI adoption immensely. The AI Activator gives firms access to research, expertise, technical support, and AI technologies, and the GovGPT allows citizens and businesses to quickly locate accurate, reliable government information, lowering administrative obstacles and improving public access to necessary data and services. This will establish New Zealand as a leader in AI innovation and competitiveness in international marketplaces.
- Increased Trade and Productivity: By providing support for businesses in the form of grants, funds, and tools, the AI Activator program will make AI more accessible to businesses, particularly those in the export industry. This will allow companies to incorporate AI into their daily operations, increasing productivity, creativity, efficiency, and inevitably boosting trade.
- Strengthened Public Services: The AI Activator program supplements the introduction of GovGPT, an AI-powered platform meant to facilitate better access to public services and information. This will result in a widespread dedication to utilising AI to improve the availability of public services.
- Development of regulatory approaches for AI: Both programs will solicit the development or alteration of current New Zealand legal frameworks, such as copyright laws, to cope with the uncertainty of difficulties posed by AI (Flitter, 2024). New Zealand will have a crucial opportunity to harmonise its laws with those of other leading nations, such as China, the United States, and a majority of European nation-states, to promote the smooth diffusion of artificial intelligence. (Treasury, 2024)
- Impact on New Zealand’s employment and labour market: The AI Activator programme and GovGPT will both ultimately affect the labour market in New Zealand, challenging policymakers through the weighing of job creation with job destruction. However, whether AI will disproportionately affect jobs requiring more skills remains uncertain. It will be crucial to emphasise supporting people in adjusting to a labour market where technology is widely utilised.
- AI integration Across Government Agencies: New Zealand’s commitment to incorporating AI into government operations is seen through both programs, particularly in the GovGPT program. This program integrates AI into public administration by setting the stage for more extensive AI applications in public policy, governance, and service delivery. (Franchise, 2024)
- AI Ethics Considerations: With the advent of AI systems like GovGPT, the New Zealand government brings up important considerations around data privacy and the ethical use of AI in public services. When implementing AI, the government must ensure that strong data security protocols and moral standards are in place to preserve public trust.
Conclusion
In conclusion, the New Zealand Government’s recent AI initiatives, such as GovGPT and AI Activator, demonstrate the country’s progressive attitude toward incorporating AI into the public and private spheres. Through the provision of access to resources, these programs enable businesses to adopt AI, which has the potential to increase productivity, innovation, and trade, benefitting the country in the long run. With the creation of such programs, New Zealand is strategically positioned to become a global leader in AI innovation and maintain its competitive edge.
References
Collins, H. J. (2024, September 11). Government unlocking potential of AI. Retrieved from Beehive Government NZ: https://www.beehive.govt.nz/release/government-unlocking-potential-ai
Flitter, J. (2024, August 5). New Zealand is co-designing regulatory frameworks for AI. Retrieved from NewZealand.AI: https://newzealand.ai/insights/new-zealand-is-co-designing-regulatory-frameworks-for-ai
Franchise. (2024, September 11). AI Activator to support businesses to adopt transformative tech. Retrieved from Franchise New Zealand: https://franchise.co.nz/articles/3877-ai-activator-to-support-businesses-adopt-transformative-tech
Haan, K., & Watts, R. (2024, June 15). 24 Top AI Statistics And Trends In 2024. Retrieved from Forbes Advisor: https://www.forbes.com/advisor/business/ai-statistics/#:~:text=Chinese%20companies%20have%20had%20the,43%25%20exploring%20its%20potential%20applications.
Howarth, J. (2024, July 26). 57 NEW Artificial Intelligence Statistics (Aug 2024). Retrieved from Exploding Topics: https://explodingtopics.com/blog/ai-statistics
Innovation, C. (2024, September 11). AI Activator to support rapid adoption of transformative AI technologies. Retrieved from Callaghan Innovation: https://www.callaghaninnovation.govt.nz/stories/ai-activator-to-support-rapid-adoption-of-transformative-ai-technologies/
Kuo, M. A. (2024, July 1). China’s National Power and Artificial Intelligence. Retrieved from The Diplomat: https://thediplomat.com/2024/07/chinas-national-power-and-artificial-intelligence/#:~:text=The%20attention%20the%20PRC%20government,leader%20in%20AI%20by%202030.
Lynch, C. (2024, September 11). Government launches programme to boost AI uptake in New Zealand businesses. Retrieved from Chris Lynch Christchurch’s Newsroom: https://www.chrislynchmedia.com/news-items/government-launches-programme-to-boost-ai-uptake-in-new-zealand-businesses/
Maasland, T., & Parker, J. (2024, August 2). New Zealand’s approach to Artificial Intelligence: Minister’s strategic direction on AI and unveiling New Zealand’s AI blueprint. Retrieved from MinterEllisonRuddWatts: https://minterellison.co.nz/insights/new-zealand-s-approach-to-artificial-intelligence
PwC. (2024, September 15). PwC’s Global Artificial Intelligence Study: Sizing the prize. Retrieved from PwC: https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligence-study.html#
Treasury, T. (2024, July 15). New economic analysis on the impact of artificial intelligence. Retrieved from The Treasury: https://www.treasury.govt.nz/publications/media-advisory/new-economic-analysis-impact-artificial-intelligenc
