Read The Times Australia

Daily Bulletin

NZ’s new AI strategy is long on ‘economic opportunity’ but short on managing ethical and social risk

  • Written by: Andrew Lensen, Senior Lecturer in Artificial Intelligence, Te Herenga Waka — Victoria University of Wellington
NZ’s new AI strategy is long on ‘economic opportunity’ but short on managing ethical and social risk

The government’s newly unveiled National AI Strategy is all about what its title says: “Investing with Confidence”. It tells businesses that Aotearoa New Zealand is open for AI use, and that our “light touch” approach won’t get in their way.

The question now is whether the claims made for AI by Minister of Science, Innovation and Technology Shane Reti – that it will help boost productivity and enable the economy to grow by billions of dollars – can be justified.

Generative AI – the kind powering ChatGPT, CoPilot and Google’s video generator Veo 3 – is certainly earning money. In its latest funding round in April, OpenAI was valued at US$300 billion.

Nvidia, which makes the hardware that powers AI technology, just became the first publicly traded company to surpass a $4 trillion market valuation. It’d be great if New Zealand could get a slice of that pie.

New Zealand doesn’t have the capacity to build new generative AI systems, however. That takes tens of thousands of NVIDIA’s chips, costing many millions of dollars that only big tech companies or large nation states can afford.

What New Zealand can do is build new systems and services around these models, either by fine-tuning them, or using them as part of a bigger software system or service.

The government isn’t offering any new money to help companies do this. Its AI strategy is about reducing barriers, providing regulatory guidance, building capacity and ensuring adaption happens responsibly.

But there aren’t many barriers to begin with. The regulatory guidance contained in the strategy essentially says “we won’t regulate”. Existing laws are said to be “technology-neutral” and therefore sufficient.

As for building capacity, the country’s tertiary sector is more under-funded than ever, with universities cutting courses and staff. Humanities research into AI ethics is also ineligible for government funding as it doesn’t contribute to economic growth.

A relaxed regulatory regime

The issue of responsible adoption is perhaps of most concern. The 42-page “Responsible AI Guidance for Businesses” document, released alongside the strategy, contains useful material on issues such as detecting bias, measuring model accuracy, and human oversight. But it is just that – guidance – and entirely voluntary.

This puts New Zealand among the most relaxed nations when it comes to AI regulation, along with Japan and Singapore. At the other end is the European Union, which enacted its comprehensive AI Act in 2024, and has stood fast against lobbying to delay legislative rollout.

The relaxed approach is interesting in light of New Zealand being ranked third-to-last out of 47 countries in a recent survey of trust in AI. In another survey from last year, 66% of New Zealanders reported being nervous about the impacts of AI.

Some of the nervousness can be explained by AI being a new technology with well documented examples of inappropriate use, intentional or not. Deepfakes as a form of cyberbullying have become a major concern. Even the ACT Party, not generally in favour of more regulation, wants to criminalise the creation and sharing of non-consensual, sexually explicit deepfakes.

Generative image, video and music creation is reducing the demand for creative workers – even though it is their very work that was used to train the AI models.

But there are other, more subtle issues, too. AI systems learn from data. If that data is biased, then those systems will learn to be biased, too.

New Zealanders are right to be anxious about the prospect of private sector companies denying them jobs, entry to supermarkets or a bank loan because of something in their pasts. Because modern deep learning models are so complex and impenetrable, it can be impossible to determine how an AI system made a decision.

And what of the potential for AI to be used online to mislead voters and discredit the democratic process, as the New York Times has reported may have occurred already in at least 50 cases?

Managing risk the European way

The strategy is essentially silent on all of these issues. It also doesn’t mention Te Tiriti o Waitangi/Treaty of Waitangi. Even Google’s AI summary tells me this is the nation’s founding document, laying the groundwork for Māori and the Crown to coexist.

AI, like any data-driven system, has the potential to disproportionately disadvantage Māori if it involves systems from overseas designed (and trained) for other populations.

Allowing these systems to be imported and deployed in Aotearoa New Zealand in sensitive applications – healthcare or justice, for example – without any regulation or oversight risks worsening inequalities even further.

What’s the alternative? The EU offers some useful answers. It has taken the approach of categorising AI uses based on risk:

  • “Unacceptable risk” – the likes of social scoring (where individuals’ daily activities are monitored and scored for their societal benefit) and AI hacking – is outright banned.

  • High-risk systems, such as uses for employment or transportation infrastructure, require strict obligations, including risk assessments and human oversight.

  • Limited and minimal risk applications – the biggest category by far – imposes very little red tape on companies.

This feels like a mature approach New Zealand might emulate. It wouldn’t stymie productivity much – unless companies were doing something risky. In which case, the 66% of New Zealanders who are nervous about AI might well agree it’s worth slowing down and getting it right.

Authors: Andrew Lensen, Senior Lecturer in Artificial Intelligence, Te Herenga Waka — Victoria University of Wellington

Read more https://theconversation.com/nzs-new-ai-strategy-is-long-on-economic-opportunity-but-short-on-managing-ethical-and-social-risk-260798

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...

How Ecommerce Order Retail Fulfillment Services Improve Order Accuracy?

Why Order Accuracy Matters in Ecommerce Order Retail Fulfillment Services?  Order accuracy is one...