New Zealand's economy offers a buffer against AI disruption
New Zealand has an advantage against the threat of disruption from artificial intelligence, according to an academic, who underscored the importance of doubling down on work that cannot be touched by AI.
Kenny Ching, Senior Lecturer, Business School, University of Auckland, pointed out that New Zealand's focus on tangible, value-producing work offers a buffer against AI disruption.
"New Zealand – often caricatured as a remote, agrarian outpost – may be structurally insulated from the worst of the AI shock," Ching said in an article for The Conversation.
He noted in the article that roughly 70% of New Zealand's exports come from agriculture, horticulture, seafood, and forestry, while its leading employment sectors include aged care, physiotherapy, plumbing, childcare, and early childhood education.
"These roles require physical dexterity, sensory judgement, and human empathy – skills AI cannot yet credibly replicate," Ching said.
This is reflected in the low uptake of AI tools in New Zealand's workplaces.
A Randstad report this year revealed that just 20% of New Zealand workers are currently using AI in their roles, up from 11% in the previous year.
AI's workforce disruption
The adoption of AI tools in workplaces comes with risks to the workforce.
Findings from Goldman Sachs in 2023 estimated that AI could expose 300 million full-time jobs. Separate data from the International Monetary Fund last year predicted that it would expose almost 40% of global employment.
Kristalina Georgieva, chief of the IMF, attributed the widespread disruption to AI's ability to impact high-skilled jobs.
"In the most extreme cases, some of these jobs may disappear," Georgieva previously warned.
New Zealand's base in agriculture, manufacturing, trades, and essential services gives New Zealand a comparative resilience to AI, according to Ching.
"But only if reinforced by investment in measurable innovation and productivity," he said.
Ching stressed that New Zealand's advantage is in amplifying its strength in sectors that AI cannot touch, such as food production, care, and infrastructure.
"For New Zealand, the answer may be to double down on the work that cannot be coded – turning what once looked like a structural constraint into a defining strength," he said.
The New Zealand government has been taking steps to boost the application of AI in businesses, starting with the introduction of a national strategy.
Science, Innovation, and Technology Minister Shane Reti, however, noted that its AI policy aims to encourage the "smart adoption" of these tools in businesses.
"New Zealand's strength lies in being smart adopters," Reti said in a statement. "From AI-powered precision farming techniques to diagnostic technology in healthcare, Kiwi businesses can tailor AI to solve our unique challenges and deliver world-leading solutions."
