Dr Shane Reti, Minister of Science, Innovation and Technology, said the government will invest up to $70 million to enhance New Zealand’s AI capabilities, accelerate commercialisation, and boost economic growth.
The $70 million funding over seven years, provided through the New Zealand Institute for Advanced Technology, will support cutting-edge AI research and applications, nurture world-class expertise, and strengthen New Zealand’s competitive advantage.
“Our existing AI research is expanding, with innovative work already under way in areas such as precision health and agriculture,” Reti said.
“This investment will accelerate that work by bringing our best researchers and businesses together to build capability, fast-track commercialisation, and create high-value jobs and new opportunities for Kiwi researchers.”
Reti highlighted a recent collaboration between the Auckland Bioengineering Institute and the Oden Institute at the University of Texas, backed by the Catalyst Fund, as an example of AI’s potential to boost productivity, lower costs, and improve outcomes for New Zealanders.
“New Zealand researchers, drawing on international AI expertise, are developing real-time digital models of the human body to personalise treatment, cut hospital costs, and generate millions in licensing revenue.
“Teams behind the project estimate that AI-driven public health solutions could deliver between $80 million and $160 million in annual healthcare savings. By combining AI with advanced modelling, this project could save up to $32 million a year in hospital costs through better management of chronic diseases and generate up to $16 million in annual licensing revenue from digital twin tools.
Reti said the multi-million investment “can help scale up exactly this sort of ambitious, world-class research that strengthens our economy and positions New Zealand as a global leader in next-generation technologies.”
The investment in artificial intelligence was suggested by the Prime Minister’s Science, Innovation and Technology Council, which recently appointed Grant Wright, a leading expert in driving digital transformation and product innovation through the use of AI and emerging technologies.