Blab Tech
New Zealand Prime Minister Criticises Slow AI Adoption, Calls for Government-Led Transformation
On Thursday at the China Business Summit in Wellington, New Zealand’s Prime Minister Christopher Luxon said the country’s businesses are lagging behind China in the use of artificial‑intelligence (AI) tools. He described himself as "constantly underwhelmed" by the low level of AI adoption he observes in the private sector.
Luxon noted that China is "six years ahead" of New Zealand in AI use and that the gap is also visible in other advanced economies such as Estonia, the United Arab Emirates, New South Wales and Singapore. He added that the opportunity to boost productivity is being missed.
The Prime Minister highlighted the work‑focused AI products that have entered the market in recent years. OpenAI’s coding assistant Codex, Anthropic’s Cowork, and Microsoft’s Copilot, which is embedded in Microsoft Office applications, are examples of large‑language‑model (LLM) technologies that are already being used by some organisations.
"We’re really stuck in a 1995 way of doing things," Luxon said. He illustrated the problem with a scenario in which a 32‑year‑old mother needs to understand tax rebates for her children. "Why can’t she just do an inquiry rather than have to go to MSD and IRD and all that stuff?" he asked.
He also questioned why government processes such as mortgage applications, which require proof of identity and income, are not automated. "It’s not coming, it’s here, it’s been here now for six to nine to 12 months," Luxon said.
The Prime Minister called for the government to lead the way in adopting AI. He said that the public‑service sector should be technology‑enabled and that large service organisations should adopt a customer‑centric approach.
Luxon also discussed New Zealand’s research and development profile. He said the country ranks 19th per capita in R&D spending but 46th in commercialisation. "I just hate it when I run into people and they go, ‘Oh, New Zealand invented a piece of science.’ You go, ‘That’s lovely, sunshine, but actually who invented the $10 billion business?’ And it will be some American or some Australian that gets to do that," he said.
He said the goal is to "brutally commercialise our science system" and that he wants professors to become millionaires by partnering with entrepreneurs. He described the need for a joined‑up interface between universities, entrepreneurship and government.
The Prime Minister acknowledged that evidence on AI’s impact on productivity is mixed. Some sectors report productivity drains caused by "workslop" – sub‑standard AI‑generated output that requires time to correct. Other sectors, such as hospital departments, have realised real gains from the technology.
The comments came after a series of official information requests and a government response regarding AI adoption progress. The Prime Minister’s office confirmed that it had acknowledged a request on 19 June 2026 and that it was working on a response.
In the broader context, New Zealand’s AI adoption remains below the level seen in many peer economies. The Prime Minister’s remarks highlight a perceived need for policy action to accelerate the use of AI in business and government.
The current situation is that New Zealand’s AI uptake is low, the government has pledged to lead adoption, and the commercialisation of research remains a challenge. No new policy documents or funding announcements were made at the summit, and the Prime Minister’s comments are the most recent public statement on the issue.
The government’s next steps will likely involve reviewing existing AI initiatives and exploring new incentives for businesses and public agencies to adopt AI tools. The outcome of these efforts will shape New Zealand’s position in the global AI landscape over the coming years.
Luxon noted that China is "six years ahead" of New Zealand in AI use and that the gap is also visible in other advanced economies such as Estonia, the United Arab Emirates, New South Wales and Singapore. He added that the opportunity to boost productivity is being missed.
The Prime Minister highlighted the work‑focused AI products that have entered the market in recent years. OpenAI’s coding assistant Codex, Anthropic’s Cowork, and Microsoft’s Copilot, which is embedded in Microsoft Office applications, are examples of large‑language‑model (LLM) technologies that are already being used by some organisations.
"We’re really stuck in a 1995 way of doing things," Luxon said. He illustrated the problem with a scenario in which a 32‑year‑old mother needs to understand tax rebates for her children. "Why can’t she just do an inquiry rather than have to go to MSD and IRD and all that stuff?" he asked.
He also questioned why government processes such as mortgage applications, which require proof of identity and income, are not automated. "It’s not coming, it’s here, it’s been here now for six to nine to 12 months," Luxon said.
The Prime Minister called for the government to lead the way in adopting AI. He said that the public‑service sector should be technology‑enabled and that large service organisations should adopt a customer‑centric approach.
Luxon also discussed New Zealand’s research and development profile. He said the country ranks 19th per capita in R&D spending but 46th in commercialisation. "I just hate it when I run into people and they go, ‘Oh, New Zealand invented a piece of science.’ You go, ‘That’s lovely, sunshine, but actually who invented the $10 billion business?’ And it will be some American or some Australian that gets to do that," he said.
He said the goal is to "brutally commercialise our science system" and that he wants professors to become millionaires by partnering with entrepreneurs. He described the need for a joined‑up interface between universities, entrepreneurship and government.
The Prime Minister acknowledged that evidence on AI’s impact on productivity is mixed. Some sectors report productivity drains caused by "workslop" – sub‑standard AI‑generated output that requires time to correct. Other sectors, such as hospital departments, have realised real gains from the technology.
The comments came after a series of official information requests and a government response regarding AI adoption progress. The Prime Minister’s office confirmed that it had acknowledged a request on 19 June 2026 and that it was working on a response.
In the broader context, New Zealand’s AI adoption remains below the level seen in many peer economies. The Prime Minister’s remarks highlight a perceived need for policy action to accelerate the use of AI in business and government.
The current situation is that New Zealand’s AI uptake is low, the government has pledged to lead adoption, and the commercialisation of research remains a challenge. No new policy documents or funding announcements were made at the summit, and the Prime Minister’s comments are the most recent public statement on the issue.
The government’s next steps will likely involve reviewing existing AI initiatives and exploring new incentives for businesses and public agencies to adopt AI tools. The outcome of these efforts will shape New Zealand’s position in the global AI landscape over the coming years.
