NZ invests NZD $70 million to boost AI research & innovation
The New Zealand Government has confirmed it will invest up to NZD $70 million over seven years in artificial intelligence research and development through the New Zealand Institute for Advanced Technology.
The funding aims to support AI research, the acceleration of commercial opportunities, and the growth of expertise within the national science and technology workforce.
Research focus
Minister for Science, Innovation and Technology, Dr Shane Reti, outlined the initiative as a way to strengthen research capacity and enhance the country's position in the global AI landscape.
He said, "AI is transforming economies worldwide, and New Zealand must be bold and seize the opportunities."
Current research in New Zealand is already progressing in sectors such as health and agriculture, the Minister noted. The additional investment is intended to scale these efforts and deliver broader economic and societal benefits.
"Our existing AI research is expanding, with innovative work already under way in areas such as precision health and agriculture.
"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."
International collaboration
Dr Reti highlighted a recent partnership as an example of how AI innovation is already being encouraged in the country. The Auckland Bioengineering Institute has been collaborating with the Oden Institute at the University of Texas, supported by the Catalyst Fund.
"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."
Economic potential
The investment is expected to create jobs and boost revenue in sectors where AI is seen as a growth driver. Dr Reti stated that scaling up research initiatives like the Auckland Bioengineering Institute's project can yield significant national benefits.
"The $70 million investment in AI through the Advanced Technology Institute 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," Dr Reti says.
Advisory role
The funding decision was supported by the Prime Minister's Science, Innovation and Technology Council. The Council, recently joined by Grant Wright, a specialist in digital transformation and AI-driven product development, has recommended investment in AI as a strategic economic move.
Dr Reti said, "I am pleased to welcome Grant Wright as the newest member of the Council, which is working to shape a future-focused, resilient, and globally competitive science and technology ecosystem."
The investment is set to roll out over the next seven years, with a focus on supporting collaborative projects that are likely to deliver measurable benefits in productivity, efficiency, and export revenue for the New Zealand economy.
