New Zealand drops a “light touch” AI strategy, avoids regulation
New Zealand’s government launched its National AI Strategy, titled “Investing with Confidence.” It signals the country is open to AI but won’t get in the way with rules or funding.
The strategy banks on AI boosting productivity and growing the economy by billions, says Minister Shane Reti. But New Zealand won’t build new generative AI models. That needs huge resources, like tens of thousands of Nvidia chips worth millions, affordable only to giant tech players. 
Instead, New Zealand aims to build services around existing AI models. The government offers no new money, just promises to reduce barriers, provide regulatory guidance, build capacity, and promote responsible adoption.
Regulatory guidance mostly means no regulation. Existing laws are called “technology-neutral” and deemed enough.
But universities are underfunded and cutting AI-related courses. Research into AI ethics struggles for funding because it’s not seen as driving economic growth.
New Zealand’s “Responsible AI Guidance for Businesses” is 42 pages of helpful tips on bias, accuracy, and oversight. But it is purely voluntary.
That puts New Zealand with other light-touch regulators like Japan and Singapore. The European Union goes the opposite direction with its strict AI Act.
New Zealand ranks near the bottom in trust in AI, with 66% of locals nervous about AI’s impact.
Deepfake abuse, job losses in creative industries, biased algorithms, and AI decision opacity are big concerns. The strategy skirts all of these and ignores the Treaty of Waitangi, raising red flags about potential harm to Māori communities, especially if overseas AI systems are imported with no oversight.
Critics say New Zealand should follow the EU’s model: ban unacceptable risk AI, impose strict rules on high-risk AI, and allow light rules where risk is low.
That approach could protect vulnerable groups without stifling productivity. Given local nervousness about AI, slowing down and regulating risky AI seems wise.
Shane Reti stated:
"Investing with Confidence"
"Generative AI will help boost productivity and enable the economy to grow by billions of dollars."
