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Opinion by Hamish Miles
OPINION
It’s hard to imagine that ChatGPT, the first real demonstration of the possibilities of generative AI, is only a year old.
Since then, we’ve seen huge development in other models and capabilities, not to mention the explosion in new ideas, thinking, and businesses aiming to harness thepower of AI.
The wave of AI-driven transformation is merely in its infancy, but the potential is huge.
According to the AI Forum of New Zealand it is estimated that AI could potentially add $54 billion to the country’s economy by 2035, representing a 1.7 per cent increase in GDP. A recent McKinsey study reported that generative AI alone could add up to $7.1 trillion in global economic benefits annually.
With generative AI now more capable and more widely available than before, consumers are using it for their daily information needs, and companies are incorporating it into their operations.
But in order to make the most of this change, to maximise the benefits of the creation of new, high-value jobs, even entirely new industries, New Zealand must be ready for it.
Middle of the pack, but a great place to start
In order for a country to be best-placed to take full advantage of the possibilities of generative AI, it needs to have strong institutional, infrastructural, organisational, and ethical foundations around AI.
The latest Salesforce Asia Pacific AI Readiness Index assesses these factors across 12 countries in the region and sets out what governments and businesses should be thinking about and doing now to prepare.
New Zealand ranks middle of the pack – sixth overall. Doesn’t sound great, but there’s nuance.
For example, we are world leaders in digital and open government, high participation, good IT governance, and our businesses are keen to adopt AI. However, we’re lagging on actual implementation, use of AI, training, research and development and start-ups harnessing generative AI.
This is a good start, but there’s more we can do if we want to really capture the benefits and grow our economy. The race is not over. The best countries in the world, like Singapore and Japan, are well-placed but catchable, and even beatable.
Hamish Miles.
The elephant in the room: Do Kiwis trust AI?
One of the biggest early hurdles New Zealand faces is the most foundational – trust.
According to research from IPSOS, New Zealanders have doubts. Only 43 per cent of Kiwis trust that companies will protect their personal data and 63 per cent of us say products and services using AI make us nervous.
We’re also in the bottom quarter of the OECD on professed understanding of generative AI, and the majority of Kiwis have concerns AI will discriminate and show biases towards certain groups of people.
When many of us see more drawbacks than opportunities, that’s a problem for adoption. The countries with better trust and understanding tend to be the ones making the most of AI and are better positioned for the future.
One of the best ways to counteract these concerns is to embed ethics at the core of how we approach AI. As a country built on bi-culturalism, the principles of partnership, protection, and participation, and one of the most diverse countries on earth, it’s simply non-negotiable.
Ethics provide us a framework to have the difficult conversations and solve the complex problems. It doesn’t need to be perfect, and we won’t get it right every single time, but if we have an ethical framework at the heart of our national AI strategy, that will help build confidence.
When companies embed ethical AI in their decision-making, they can make better decisions about what products to use and how, and help employees feel more confident in using them.
For the broader public, it creates the guardrails to minimise the chances of AI innovation going “off-piste”. Unconscious bias can - and does - show up in AI, and this will not help us build trust.
For example, bias in AI algorithms has the potential to have negative impacts on Aotearoa’s diverse population, including Māori, Pasifika and the LGBTQI+ community.
We need to stop looking at ethics as being only about harm and risk. Ethics is just the next round of innovation we’re going through. By creating boundaries, we’re also driving a need for innovation and creativity to be able to move forward.
A roadmap to success
The Government’s 2021 Open Data Action Plan has positioned us well for now, but we must develop an AI strategy for New Zealand.
In that year, the Government flagged developing a National AI Strategy at the Aotearoa AI Summit 2021. But that’s where it has remained.
The Government is well placed to act and the New Zealand AI cross-party caucus is an important part of accelerating policy action.
We need to adopt a risk-based approach to regulating AI with a focus on ethical and responsible use.
Our laws and policies should ensure AI is developed and used in a way that solves problems, improves lives, and leaves nobody behind, while a risk-based model of regulation targets the applications with the most risk of harm with strong, quality regulations built on improved data protection laws.
We also need to focus relentlessly on talent. Government, business, and higher-education need to work together to create a pipeline of highly skilled AI specialists to fuel our workforce, upskill existing businesses, and create the next generation of AI-based start-ups.
There’s no quick-fix law for the Government and no shortcut for business. All of us must work together to create a more inclusive AI framework and ensure a rising tide of trust and all the benefits that come with it.
Hamish Miles is the managing director of Salesforce NZ.
