The New Zealand government has launched a pilot program designed to assist small businesses in leveraging artificial intelligence (AI) to enhance productivity and competitiveness. Under this initiative, eligible businesses can receive co-funding of up to 50%, with a cap of $15,000, to develop tailored AI plans that meet their specific needs, according to Economic Development Minister Barbara Penk.
The pilot program will be executed through the Regional Business Partner Network and is initially open to existing customers. Invitations will be sent out from next Monday to businesses that have established relationships with their growth advisers, facilitating better benchmarking around digital capabilities and confidence in using AI tools. Advisors within the network will assist small enterprises in implementing their AI strategies over the six-month pilot period.
This initiative is part of a broader government strategy aimed at fostering the adoption of AI solutions among businesses to drive economic growth. AI expert Ben Reid, director of Memia, described the program as “a tiny step forward” in promoting the deeper integration of AI into the productive economy. He emphasized the importance of measuring productivity gains to evaluate the pilot’s success and expressed a desire for the inclusion of open-source AI solutions, cautioning against the risk of the advisory system becoming a sales channel for major tech firms like Microsoft and Google.
New Zealand’s Strategy for Artificial Intelligence estimates that the adoption of generative AI could contribute an astonishing $76 billion to the national economy by 2038, representing approximately 15% of the country’s gross domestic product. Minister of Research, Science, and Innovation Dr. Ayesha Verrall noted the government’s commitment to investing up to $70 million over the next seven years through the New Zealand Institute for Advanced Technology. This investment aims to support innovative AI research and applications, develop world-class expertise, and enhance New Zealand’s competitive edge.
The funding for this initiative comes from savings achieved by discontinuing the Callaghan Innovation program, which was defunded in Budget 2025. The New Zealand Institute for Advanced Technology is expected to begin operations later this year in Auckland, following lobbying by Mayor Wayne Brown for its relocation from the capital.
The pilot program reflects a growing recognition of AI’s potential to transform industries and enhance operational efficiencies. As businesses navigate an increasingly complex technological landscape, access to expert guidance and financial support could prove invaluable. Ultimately, the success of this initiative may set the stage for broader adoption of AI across the nation’s small businesses, further unlocking economic opportunities in the years to come.
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