Tim Wilson
Wellington, December 6, 2023
The morning before details of the coalition between National, ACT and New Zealand First were finally announced, Westpac Bank released a report on Artificial Intelligence (AI) in business.
AI helps maintain business competitiveness and improve profitability, said the Bank’s Industry Economist Paul Clark.
No surprises there. Clark added what might be called the AI mantra: increased adaptability, responsiveness to changing circumstances, boosting productivity, and delivering a sharper customer focus.
“Despite these benefits,” frowned Clark, “most firms in New Zealand remain ambivalent about AI and are not pursuing it with urgency. In part, that’s because most businesses in New Zealand are small and operationally focused.”
With the coalition announcement, a tsunami of political news drowned out this observation. Who got what cabinet post? Who won what in the negotiations? Out marched the pundits, armed with plaudits and pitchforks. None was talking about AI.
But we should be. As Maxim Institute found earlier this year, New Zealand is behind the eight ball in AI usage in the primary sector. Countries such as the US, UK, India, Singapore and the Netherlands are ahead of us when it comes to investing in agricultural AI. Keep in mind feeding the world is how New Zealand earns its lunch and 40% of the country is under the plough. Agriculture accounts for 80% of our exports.
Chief Executive, Maxim Institute, Auckland
Adopting technology
Technology adoption is the problem. Presaging the Westpac report, a global study from the end of last year said that “Information Technology departments in NZ and Australia are the lowest adopters of AI and machine learning (ML) technologies of all the nations surveyed, with only 27% having done so.” This fell short of the global average of 44%.
And before you take comfort in Australia being lumped in with us, our cousins across the ditch this month signed an International Declaration on AI safety at Bletchley Park along with players like the US and UK. We did not. We didn’t even attend.
It is clear that the future is important to the incoming PM, cabinet ministers and MPs; what can the new government do? Lead by example: create a new business unit under the Department of Prime Minister of Cabinet. Call it The AI Coordination Group. This group would be responsible for strengthening protections around government-held data about New Zealanders.
It could do the grunt work that our small, operationally-focussed businesses are currently unable to do. The group could also lead a review of New Zealand’s existing legislative and regulatory framework that could incentivise the adoption of AI.
The possibilities are huge. Asked by AM show host Ryan Bridge if the widespread adoption of AI could see New Zealand double its GDP, Westpac’s Clark responded: “I would not like to put a number on it as there are so many factors that affect GDP. However, it is ultimately a tool to make you produce more from less.”
Consider this a pitch rather than a pitchfork when facing the future of AI in this country.
More from less. Who doesn’t want that?
Tim Wilson is the Executive Director of the Auckland-based Maxim Institute, an independent think tank working to promote the dignity of every person in New Zealand by standing for freedom, justice, compassion, and hope.
