AI Could Add $3.4 Billion to NZ Economy, But Challenges Remain

Early detection of breast cancer was a primary goal when Microsoft partnered with Wellington-based image analysis firm Volpara in 2023, with a strong focus on artificial intelligence. This collaboration has since expanded to target brain and stomach cancers, aligning with the health team’s objectives.

According to a new report by Mandala Partners, New Zealand currently lags behind its peers, especially in digital skills, AI start-ups, and venture capital investment. The report highlights the potential for AI to add $3.4 billion to the New Zealand economy if these challenges are addressed.

AI’s Impact on Healthcare

Microsoft and Volpara’s collaboration is a prime example of how AI can revolutionize healthcare. By leveraging advanced algorithms, the partnership aims to improve early cancer detection and treatment outcomes. The expansion to brain and stomach cancers demonstrates the versatility and potential of AI in medical research and patient care.

Economic Benefits of AI

The economic benefits of AI are substantial. According to the report, AI can attract foreign investment and drive innovation across various sectors. However, realizing these benefits requires addressing key areas of concern:

Digital Skills

New Zealand faces a significant skills gap in the AI and digital sectors. To bridge this gap, the government and private sector need to invest in education and training programs that equip the workforce with the necessary skills to thrive in the AI-driven economy.

AI Start-ups

The country lacks a robust ecosystem of AI start-ups. Support for start-ups through funding, mentorship, and infrastructure can help foster innovation and create a competitive AI industry.

Venture Capital Investment

Securing venture capital investment is crucial for the growth of AI start-ups. New Zealand needs to improve its attractiveness as a destination for venture capital by offering favorable policies and incentives.

Real-World Applications

AI is not just a theoretical concept; it is already making a tangible impact in various industries. For instance, in healthcare, AI-driven tools are improving diagnostic accuracy and patient outcomes. In finance, AI algorithms are enhancing risk assessment and fraud detection. In manufacturing, AI is optimizing production processes and reducing waste.

Addressing Ethical Concerns

As AI adoption increases, ethical concerns such as data privacy, algorithmic bias, and job displacement must be addressed. Implementing robust ethical frameworks and regulatory standards is essential to ensure that AI development and deployment are responsible and beneficial to society.

Future Prospects

The future of AI in New Zealand is promising, but it requires a concerted effort from all stakeholders. By addressing the identified challenges and fostering a supportive environment, New Zealand can position itself as a leader in the global AI landscape and reap the economic benefits of this transformative technology.