Labour unveils AI plan with tougher rules in New Zealand

The Labour Party has unveiled an AI Action Plan ahead of the general election, centred on new oversight, copyright rules, and support for adoption across schools, businesses, and community groups.

The policy package includes an Office of AI to coordinate policy across government and an online safety regulator within the Department for Internal Affairs. Labour also pledged to develop a copyright framework for creators, introduce rules for data centres, support small businesses and community organisations using AI, and set up an AI in Education team for schools, teachers, and students.

The announcement puts artificial intelligence alongside other election issues as parties respond to growing public concern over workplace change, online harms, energy use, and the role of large technology companies in shaping access to digital tools.

Labour Leader Chris Hipkins said the party wanted to balance potential economic and public service gains with stronger public safeguards.

"AI is changing how we work, access services and make decisions. Labour will make sure it works for Kiwis," Hipkins said.

He said the technology could reduce administrative burdens in healthcare and improve productivity for workers and smaller firms, while warning against letting offshore technology companies determine how AI develops in New Zealand.

"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.

"But we cannot leave it to big international tech companies to decide how it shapes our future. Labour has a plan to make AI work for New Zealanders, not just the companies that build and own it," Hipkins said.

Policy focus

A central part of the plan is tighter regulation of large data centres. Labour said these facilities should meet their own energy and connection costs, reflecting concern that rising demand from AI infrastructure could put pressure on electricity networks and household bills.

The party also said it would work with businesses and unions to ensure any productivity gains linked to AI are reflected in wages and working conditions. The approach appears designed to address a key political risk around AI adoption: whether efficiency gains flow to workers as well as employers and technology providers.

Education is another focus. Labour said its proposed AI in Education team would support schools, teachers, and students as AI tools become more common in classrooms and administrative work. While the party did not set out operational details, the measure points to a focus on practical guidance rather than leaving individual schools to develop their own approach.

The package also covers creative industries. Labour said it would introduce a copyright framework intended to ensure creators retain control over their work and are paid for it, an issue that has become more prominent as AI models are trained on large volumes of text, images, and other material.

Risks and safeguards

Reuben Davidson, Labour's Science, Technology and Innovation spokesperson, framed the proposals as a response to both public interest in AI and anxiety about its effects. He cited concerns ranging from job losses and harmful content to accountability for decisions made with automated systems.

"New Zealanders can see the opportunities of AI, but they also see the risks, whether that's job losses, harmful content, data centres driving up energy costs, or a lack of accountability for important decisions that affect people's lives," Davidson said.

He said the package aimed to combine domestic rule-setting with protections for rights, safety, privacy, and creative work.

"Labour will protect what matters, unlock the benefits, and make sure New Zealand sets the rules on its own terms. That means protecting people's rights, safety and privacy, creative work, and ensuring that there is always human accountability.

"We'll also make big data centres pay their own way, securing their own renewable energy and covering their own connection costs. New Zealand households shouldn't be subsidising the power bills of overseas tech companies.

"We can't afford three more years of National letting big tech call all the shots. It's time New Zealand set its own rules, so that all New Zealanders benefit," Davidson said.

The plan reflects a wider shift in public policy debates as governments and political parties move from broad support for digital innovation to more detailed positions on regulation, infrastructure, and labour market effects. In New Zealand, that debate now appears set to become part of the election campaign, with Labour arguing for a more interventionist framework around how AI is deployed and who bears its costs.

Among the clearest measures in the package are the proposed Office of AI and online safety regulator, which would give the state a more direct role in coordinating policy and responding to harmful digital content. Together with the commitments on data centres, copyright, and workplace outcomes, the proposals outline a model in which AI adoption is encouraged but subject to tighter rules on accountability and cost allocation.