NZ launches AI advisory pilot for small businesses

The New Zealand Government has launched an AI Advisory Pilot for small businesses, with co-funding for tailored AI planning and specialist support delivered through the Regional Business Partner Network.

The pilot targets small-and-medium enterprises that already use the Regional Business Partner Network. It offers co-funding of up to 50 percent, capped at $15,000, for an AI plan aligned to a business's needs, staff and customers. Participating firms can then work with specialists to put that plan into practice.

The Ministry of Business, Innovation and Employment has allocated $765,000 to the programme from existing appropriations. The Government expects the pilot to include at least 51 small-and-medium enterprises. It plans to invite participants from late January.

Chris Penk, Small Business and Manufacturing Minister, set out the Government's view of how AI already fits into daily working life for many firms.

"Artificial intelligence is becoming part of how Kiwis work every day across many industries. It can quickly sort information, answer simple customer questions at any hour, draft and check documents and handle repetitive digital tasks that normally eat into the day," said Chris Penk, Small Business and Manufacturing Minister, New Zealand Government.

Funding model

The co-funding covers advisory work to develop a plan for AI use inside a business. The programme also includes access to experienced specialists who work with owners and managers on implementation steps.

Penk said small business owners had expressed interest in using AI in day-to-day operations but had also raised uncertainty about how to begin and how to manage risks.

"Small business owners tell me they want to use AI to clear space in their busy schedules, so they can focus on the parts of their business they enjoy, but many are unsure where to start or how to use these tools in a safe and practical way," said Penk.

He said the pilot would provide practical support from trusted experts. He also framed the programme as a response to fast-moving technology change in the wider economy.

"That's why the Government is launching the AI Advisory Pilot. This pilot programme will give small business owners practical support from trusted experts so they can confidently use AI tools that lift productivity and help them stay competitive in a rapidly evolving technological landscape," said Penk.

Network delivery

The Government will run the pilot through the Regional Business Partner Network for existing customers, with a minimum duration of six months. The network has 15 regional service providers. It uses advisors to connect firms with guidance, people and resources.

"The pilot programme will run for at least six months through the Regional Business Partner Network for existing RBP customers, ensuring it is well targeted. Participants will be invited to take part from late January," said Penk.

The Government described the Regional Business Partner Network as an established channel for advice and funding that covers management, growth planning and innovation. Penk said AI advisory services fit with the network's existing role for small and medium-sized businesses.

"Expanding into AI support is a natural next step for the Regional Business Partner Network. The support provided will be able to provide clear guidance on privacy, data management and responsible use, which can feel challenging to navigate with AI still being such a new tool," said Penk.

Policy aims

The Government positioned the pilot as a way to test how structured advisory support changes technology uptake and business performance. It said it would measure outcomes and use the results to inform any broader rollout.

"The pilot will help the Government test whether targeted expert support and step-by-step guidance can accelerate digital adoption and deliver measurable productivity gains, allowing us to understand what success could look like on a larger scale," said Penk.

Separately, Dr Shane Reti, Minister of Science, Innovation and Technology, cited national estimates for the economic impact of adopting generative AI.

"AI has enormous potential to drive economic growth and increase productivity. New Zealand's Strategy for Artificial Intelligence estimates adopting generative AI alone could add a staggering $76 billion to the New Zealand economy by 2038, which equates to 15 percent of national GDP," said Dr Shane Reti, Minister of Science, Innovation and Technology, New Zealand Government.

Reti also pointed to Government investment linked to the national AI strategy, including funding for research and applications through the New Zealand Institute for Advanced Technology.

"Through our AI strategy, the Government is also investing up to $70 million over seven years through the New Zealand Institute for Advanced Technology to support innovative AI research and applications, develop world-class expertise, and sharpen New Zealand's competitive edge," said Reti.

Penk said the Government saw the pilot as part of its wider approach to business policy and economic outcomes.

"The Government is committed to creating the right environment and providing the right backing for businesses to thrive, create jobs and lift wages, because when business do well, Kiwis do well," said Penk.