The Social Security (Modernisation) Amendment Bill, enabling the Ministry of Social Development (MSD) to use artificial intelligence when making benefit decisions, will help modernise New Zealand’s welfare system, the government said.
The bill passed its third reading in Parliament after being fast-tracked through the House under urgency.
The Social Security (Modernisation) Amendment Bill permits MSD to “approve the use of an automated electronic system by a specified person to make any decision, exercise any power, comply with any obligation, or take any other related action under any specified provision, with appropriate safeguards”.
MSD said the proposed changes would not include the use of generative AI systems such as ChatGPT.
Social Development Minister Louise Upston said the changes would reduce delays, errors and unnecessary debt. It will also allow staff to spend more time supporting clients.
The government said safeguards would still be in place, including human oversight and protections to guard against bias.
National’s Scott Simpson, who introduced the bill, said MSD processes millions of decisions each year, and staff were spending too much time on administrative tasks.
“That’s not good enough for the clients of MSD, or taxpayers,” he said.
“This bill fixes that.”
He said the technology would be used “sensibly.”
“Automated decision-making will be used for simple, rules-based decisions, and human judgement will remain where it is needed.”
“That means faster decisions, more consistency, and a system people can trust.”