What The Government’s AI Strategy Means For Business.

In July 2025, the Government released its first national strategy for artificial intelligence (AI), marking a significant milestone in the country’s digital transformation journey. The strategy outlines a practical, adoption-focused approach to AI, aimed at boosting productivity and innovation - particularly among small to medium enterprises (SMEs).

The Government’s focus is on enabling businesses to integrate AI into their operations confidently and responsibly. This pragmatic approach is designed to unlock economic value.

For businesses navigating the legal landscape of AI, the strategy provides welcome clarity. It confirms that New Zealand’s existing legal frameworks are largely technology-neutral and adaptable to AI applications.

Complementing the strategy is the Responsible AI Guidance for Businesses, a voluntary resource developed by MBIE to help businesses assess and manage AI-related risks. It covers key areas such as cybersecurity, intellectual property, procurement, and stakeholder engagement.

Opportunities For SMEs

Despite growing interest in AI, adoption among New Zealand SMEs remains low. The strategy aims to close this gap by demystifying AI and promoting its practical benefits, including automating routine tasks, enhancing customer engagement, and generating actionable insights from data.

The Government is also investing in workforce capability, with funding allocated to tertiary education, business mentoring, and AI literacy programmes. These initiatives are designed to equip businesses with the skills needed to adopt AI responsibly and effectively.

Commercial Considerations

From a legal and commercial perspective, businesses considering AI adoption should:

• Review existing contracts and policies to ensure they accommodate AI use, particularly around data handling and IP ownership.
• Conduct risk assessments to identify potential legal, ethical, and operational issues.
• Engage with stakeholders to build trust and ensure transparency in AI deployment.
• Seek legal advice where AI intersects with regulated areas such as privacy, competition, and consumer law.

The Responsible AI Guidance provides detailed checklists and scenarios in the appendix to support these steps, including guidance on procurement, recordkeeping, and human-in-the-loop decision-making.

For SMEs, this is an opportunity to leverage AI for growth, efficiency, and innovation. At Davenports Law, we are closely monitoring these developments and are ready to assist clients in navigating the legal and commercial implications of AI adoption.