Labour promises to set up AI regulator, copyright rules if elected

Labour is promising to set up an AI office, an online safety regulator, copyright rules that ensure creators are paid for their work, and impose rules on data centres.

The regulator would have a wider mandate than overseeing a social media ban for under-16s, and the public service would be given "clear expectations" around AI, human oversight, accountability, privacy and consumer and employment protections.

The party says it would also work with small and large businesses, community organisations, iwi, educators, and unions on how to safely use AI and ensure productivity gains are passed through to wages and conditions.

Leader Chris Hipkins and Technology and Innovation spokesperson Reuben Davidson announced the policy at the Victoria University of Wellington's tech hub, across from the capital's railway station, on Wednesday morning.

"Used well, AI has huge benefits. It can cut hospital paperwork so doctors and nurses have more time with patients. Workers and small businesses can be more productive. Certain services can be delivered more efficiently," Hipkins said.

"But we cannot leave it to big international tech companies to decide how it shapes our future."

Davidson said Labour would make sure New Zealand set AI rules on its own terms.

"That means protecting peoples' rights, safety and privacy, creative work, and ensuring that there is always human accountability."

National's social media ban has already proposed an online safety regulator, but Labour's policy said its mandate would be widened to help advise the government on emerging issues and help "seize the opportunities from AI while managing the risks".

"We could look to establish it as an independent regulator, outside of DIA, given the significance of the issues involved," the party's policy document said.

The separate Office of AI would be established within the Department of Prime Minister and Cabinet using existing resources, and would have responsibility for coordinating AI policy across government and developing standards, a long-term plan for the workforce.

A senior minister would also have responsibility for AI, with a whole-of-government work programme to be published "so New Zealanders can see what action is being taken".

Other commitments In the policy include:

• enable an AI in Education team to support schools, teachers and students to make sure there is clear and adequate support for schools to use AI safely;
• look at how to strengthen New Zealand's control over its data and establish clear standards around the use of private information, such as health data;
• work closely with Australia to align standards and approaches and with Pacific countries on safety and security;
• develop a framework for the use of copyright material by AI, including how creators can control and be remunerated for the use of their work, by working with creators, publishers, technology companies and others to get settings and enforcement right;
• identify gaps in New Zealand law and strengthen protections where needed, including a ban on non-consensual deepfake pornography
• require data centres to secure their own renewable energy supply, pay for their own connection costs, reduce electricity demand during peak stress periods, and use water efficiently;
• work with iwi and hapū on how Māori data is collected, owned, governed and used;
• support small businesses to adopt AI safely through the AI small business fund, an extension to the AI Advisory Pilot and an increase to the Founder and Startup Support Programme; and
• "take steps to understand the full lifetime cost of adopting AI across the public service".

Aligning with Australia creates 'more certainty and stability' - Hipkins

The Australian government has already established its own AI office, to ensure a whole-of-government response.

Speaking to media after Labour's announcement, Hipkins said New Zealand was very late to the conversation, and he made no apologies that there were similarities between what Australia was doing and what Labour was proposing.

"If we can align with Australia, that's going to be good for our creative sector, who often work on both sides of the Tasman. It's going to be good for our business community, who can work on both sides of the Tasman, and it's going to create more certainty and stability for everybody involved."

He had previously opposed [https://www.rnz.co.nz/news/politics/796938/urgent-need-for-rules-and-protections-on-data-centres-greens-say

the Green Party's plan for a moratorium on new data centres].

Davidson said if a company wanted to use a New Zealand creator's work to train its AI, then that creator should have a say, and should get paid.

The rules would be built with the creators, publishers, and tech companies, and was confident the rules could be enforced.

"What I have consistently heard through my engagement with creative communities across New Zealand is that there are currently no adequate protections in place to safeguard their works, and it's government's responsibility to step in and put a framework in place that gives our creative communities confidence that they can continue to be some of the best in the world at creative enterprises and at innovation, and that they know that it's safe for them to continue to share that work."

Speaking to Midday Report, Davidson was unable to put any costs on the policy, saying it was an action plan.

He also could not guarantee that no public servant would lose their job because of AI.

"I'm not sure that that anyone can make that commitment, but I know that there will be new jobs created and new ways that our public service will be able to function, and the people in our public service will be able to function," he said.

"I think what's really important, and we've seen that this week again, it's vital that we retain people in those decision-making roles that directly impact people's lives."

ACT leader and Minister for Regulation David Seymour. RNZ / Mark Papalii

ACT leader and Minister for Regulation David Seymour said AI [ https://www.rnz.co.nz/news/politics/596479/ministry-for-regulation-issues-ai-guidance-for-regulators

was already being regulated].

"The Ministry for Regulation has issued guidance to every government department on how to take advantage of AI in a safe way. We already have an online safety regulator in the DIA, so it's not obvious what they think they're going to achieve there. It's called NetSafe," he said.

"And so far as trying to to get ahead of and take advantage of the economic benefits, Labour sound like they're taking an approach that this is all bad. There are risks with AI, but actually we should be looking to make better use of it."