A major investment of up to $70 million over the next seven years to research and build New Zealand’s Artificial Intelligence (AI) capability, fast-track commercialisation, and drive economic growth, has been announced by the Government.
Science, Innovation, and Technology Minister, Dr Shane Reti, says: “The funding will support groundbreaking AI research, foster world-class expertise, and fast-track the commercialisation of AI applications across various sectors.”
The funding, to be administered through the New Zealand Institute for Advanced Technology, is a strategic move to build its AI capability and sharpen its competitive edge in the global tech landscape, Reti says.
It’s the second major initiative of the Institute of Advanced Technology, following May’s $71m commitment to an advanced technology science platform at Victoria University of Wellington.
“AI is transforming economies worldwide, and New Zealand must be bold and seize the opportunities,” Reti says.
“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.”
Reti says a recent partnership between the Auckland Bioengineering Institute and the Oden Institute at the University of Texas, supported by the Catalyst Fund, is an example of how AI can lift productivity, reduce costs, and deliver better 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 $80m and $160m in annual healthcare savings.
“By combining AI with advanced modelling, this project could save up to $32m a year in hospital costs through better management of chronic diseases and generate up to $16m in annual licensing revenue from digital twin tools.
“The $70m 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,” Reti says.
Investment in AI was recommended by the Prime Minister’s Science, Innovation and Technology Council, which recently appointed Grant Wright, an expert in digital transformation and product innovation through AI and emerging technologies, says Reti.
