Blab Politics
New Zealand Prime Minister Urges Faster AI Adoption After China Business Summit
When Christopher Luxon stepped onto the stage at Wellington’s China Business Summit on Thursday, 24 June 2026, he didn’t merely discuss trade; he sounded an alarm about New Zealand’s sluggish embrace of artificial intelligence.
“New Zealand’s uptake of AI technology is constantly underwhelming,” Luxon told the gathered CEOs, policymakers and academics. He said the country is roughly six years behind China in deploying AI tools and urged the government to take the reins in accelerating the shift.
During the summit, Luxon posed a simple question: how can the Kiwis catch up to China’s rapid AI deployment? He recalled visits to business associations and chambers of commerce that revealed a startling reality—only a handful of firms were actively using AI. According to reports, very few companies had woven large‑language‑model (LLM) applications such as OpenAI’s Codex, Anthropic’s Cowork or Microsoft’s Copilot into their everyday workflows.
The Prime Minister painted a picture of how AI could cut red tape in public services. He described a scenario in which a 32‑year‑old mother could file a tax inquiry online without ever stepping into an Inland Revenue office, and a mortgage application could be verified automatically rather than requiring piles of paperwork. “It’s not coming, it’s here, it’s been here for six to nine to 12 months,” he said, underscoring the gap between availability and implementation.
Luxon cited international examples—Estonia, the United Arab Emirates, New South Wales and Singapore—regions that have embraced AI more aggressively. He warned that New Zealand’s productivity gains could stall if the country does not act quickly.
A core part of his message was the need to commercialise the nation’s science system. He noted that New Zealand ranks 19th per‑capita in research and development (R&D) spending but slips to 46th in commercialisation. “I want professors to become millionaires because they’re partnering with entrepreneurs and building out businesses,” he said, calling for tighter integration between universities, industry and government.
New Zealand’s AI strategy, released in 2025, outlines a framework for responsible AI development and deployment. The strategy, which aligns with OECD AI principles, calls for investment in AI talent, infrastructure and ethical governance. It also proposes a national AI research and innovation hub to accelerate the transition from research to market.
Luxon’s comments arrive amid mixed evidence on the productivity impact of AI tools. Some sectors report “workslop” – low‑quality AI output that requires human correction – while others, such as hospital departments, have seen tangible efficiency gains. The Prime Minister acknowledged that the benefits of AI vary by industry and that careful implementation is essential.
The government has recently introduced an R&D tax incentive, scheduled to take effect in April 2027, to encourage private investment in research. The incentive is part of a broader effort to boost the country’s innovation ecosystem.
Business leaders at the summit expressed cautious optimism. While no immediate policy changes emerged, the event reaffirmed the government’s commitment to fostering AI adoption. The next steps will likely involve consultations with industry groups, the AI Forum New Zealand, and academic partners to develop concrete action plans.
In sum, Prime Minister Luxon has called for a national push to accelerate AI adoption, citing the lag behind China and the need to commercialise scientific research. The government’s AI strategy and upcoming R&D tax incentive are positioned to support this effort, though the practical impact on productivity remains to be seen.
“New Zealand’s uptake of AI technology is constantly underwhelming,” Luxon told the gathered CEOs, policymakers and academics. He said the country is roughly six years behind China in deploying AI tools and urged the government to take the reins in accelerating the shift.
During the summit, Luxon posed a simple question: how can the Kiwis catch up to China’s rapid AI deployment? He recalled visits to business associations and chambers of commerce that revealed a startling reality—only a handful of firms were actively using AI. According to reports, very few companies had woven large‑language‑model (LLM) applications such as OpenAI’s Codex, Anthropic’s Cowork or Microsoft’s Copilot into their everyday workflows.
The Prime Minister painted a picture of how AI could cut red tape in public services. He described a scenario in which a 32‑year‑old mother could file a tax inquiry online without ever stepping into an Inland Revenue office, and a mortgage application could be verified automatically rather than requiring piles of paperwork. “It’s not coming, it’s here, it’s been here for six to nine to 12 months,” he said, underscoring the gap between availability and implementation.
Luxon cited international examples—Estonia, the United Arab Emirates, New South Wales and Singapore—regions that have embraced AI more aggressively. He warned that New Zealand’s productivity gains could stall if the country does not act quickly.
A core part of his message was the need to commercialise the nation’s science system. He noted that New Zealand ranks 19th per‑capita in research and development (R&D) spending but slips to 46th in commercialisation. “I want professors to become millionaires because they’re partnering with entrepreneurs and building out businesses,” he said, calling for tighter integration between universities, industry and government.
New Zealand’s AI strategy, released in 2025, outlines a framework for responsible AI development and deployment. The strategy, which aligns with OECD AI principles, calls for investment in AI talent, infrastructure and ethical governance. It also proposes a national AI research and innovation hub to accelerate the transition from research to market.
Luxon’s comments arrive amid mixed evidence on the productivity impact of AI tools. Some sectors report “workslop” – low‑quality AI output that requires human correction – while others, such as hospital departments, have seen tangible efficiency gains. The Prime Minister acknowledged that the benefits of AI vary by industry and that careful implementation is essential.
The government has recently introduced an R&D tax incentive, scheduled to take effect in April 2027, to encourage private investment in research. The incentive is part of a broader effort to boost the country’s innovation ecosystem.
Business leaders at the summit expressed cautious optimism. While no immediate policy changes emerged, the event reaffirmed the government’s commitment to fostering AI adoption. The next steps will likely involve consultations with industry groups, the AI Forum New Zealand, and academic partners to develop concrete action plans.
In sum, Prime Minister Luxon has called for a national push to accelerate AI adoption, citing the lag behind China and the need to commercialise scientific research. The government’s AI strategy and upcoming R&D tax incentive are positioned to support this effort, though the practical impact on productivity remains to be seen.
