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New Zealand pushes AI use across public sector regulators

• By Ria Duneja
New Zealand pushes AI use across public sector regulators

New Zealand’s Government has issued fresh guidance encouraging regulators to use artificial intelligence for low-risk administrative work, as part of a wider push to modernise the public sector and reduce bureaucracy according to various media reports.


The framework, released by the Ministry for Regulation, allows agencies to adopt AI tools for tasks such as case triage, prioritisation, structured data validation and large-scale analysis. 


However, officials stressed that human judgement and accountability must remain central to all regulatory decisions.


The guidance positions AI as a governance and productivity tool rather than simply a technical upgrade.


Human Oversight


Authorities made clear that AI should support regulators, not replace them.


The document states that legal interpretation and final accountability must remain with human decision-makers, especially in high-risk or complex cases.


Officials also warned that introducing AI into poorly designed systems could worsen existing inefficiencies instead of fixing them.


The framework urges agencies to establish safeguards covering transparency, fairness, privacy protections and alignment with Te Tiriti o Waitangi principles.


Productivity push


Regulation Minister David Seymour said the guidance would help improve efficiency across government agencies while reducing unnecessary administrative burdens.


“Outside of Wellington, improvements in productivity and efficiency are the norm. Households and businesses have found ways to do more with less. It's reasonable to ask the same of the agencies they fund,” he said.


Seymour argued that New Zealand’s regulatory system had become overly complex over time.


“For the first time, the full scale and structure of New Zealand’s regulatory landscape has been mapped, exposing decades of overlap and complexity,” Seymour said.


He added that AI could help regulators process work faster and more effectively.


“AI can enable regulators to do more, faster. New Zealand’s public service is bloated, snowed in by red tape and inefficient. The AI guidance will help us address those problems,” he said.


“An efficient public service that gets bang for taxpayer buck is important to Kiwis.”


Vast network

According to the Government, New Zealand currently has more than 260 regulators operating across central government, local government and statutory bodies.


The breakdown includes:

The guidance aims to help these organisations deploy AI safely in lower-risk functions without compromising legal integrity.


Key uses


The Government outlined several ways AI could assist regulators, particularly where large volumes of data are involved.


“The guidance shows regulators how to utilise AI in lower risk areas. Used well, AI can help them work more efficiently,” Mr Seymour said.


“AI can do powerful work. It analyses at scale, drafts at speed, and surfaces patterns people might miss.”


Examples highlighted by officials include:

The AI guidance forms part of the Government’s broader effort to cut red tape and improve productivity across the economy.


“This will drive change in the size of government and support our mission to give taxpayers a fairer deal,” Seymour said.


“Every dollar not wasted on bureaucracy is a dollar that can stay with the people who earned it, or be spent on the frontline services New Zealanders actually rely on.”


The Minister also linked excessive regulation to weaker economic growth.


“In a high-cost economy, regulation isn’t neutral - it’s a tax on growth. This Government is committed to clearing the path of needless regulations by improving how laws are made and applied,” he said.


Global shift


New Zealand’s approach reflects a wider international trend as governments increasingly explore AI to improve efficiency while keeping strict human oversight in place.


The focus on low-risk deployment highlights growing concerns around accountability, transparency and fairness in automated decision-making.


The guidance also reinforces a broader reality facing governments globally. AI can strengthen well-functioning systems, but it can also magnify structural weaknesses if underlying regulatory processes remain inefficient.