NZ Launches AI Advisory Pilot to Help Small Businesses on Productivity Gains

While interest in AI is surging, many small business owners remain unsure where to start or how to implement tools safely and effectively. The new pilot is designed to close that gap.

The New Zealand Government is rolling out a new AI Advisory Pilot aimed at breaking down one of the biggest barriers to artificial intelligence adoption: helping small businesses move from curiosity to confident, practical use.

Announced today by Small Business and Manufacturing Minister Chris Penk, the pilot programme will provide hands-on, expert-led support to help small firms deploy AI tools that automate routine work, improve customer service, and unlock growth — without compromising privacy or trust.

“Artificial intelligence is becoming part of how Kiwis work every day,” Penk said. “It can sort information, answer customer questions around the clock, draft and check documents, and take care of repetitive digital tasks that drain time and energy.”

From hype to hands-on adoption

While interest in AI is surging, many small business owners remain unsure where to start or how to implement tools safely and effectively. The new pilot is designed to close that gap.

Eligible businesses will receive co-funding of up to 50 percent, capped at $15,000, to develop a customised AI plan aligned to their operations, workforce, and customers. With guidance from trusted specialists, participants will then be supported to put that plan into action.

“This is about clearing space in busy schedules so owners can focus on the parts of their business they actually enjoy,” Penk said. “The pilot gives them the confidence to use AI in a practical, responsible way.”

Why this matters for New Zealand’s economy

The initiative aligns with the Government’s broader Strategy for Artificial Intelligence, which estimates that generative AI alone could add $76 billion to the New Zealand economy by 2038 — around 15 percent of GDP.

Minister of Science, Innovation and Technology Dr Shane Reti said the pilot complements long-term investment in AI capability and research.

“AI has enormous potential to drive economic growth and lift productivity,” Reti said. “Through our AI strategy, the Government is also investing up to $70 million over seven years via the New Zealand Institute for Advanced Technology to support cutting-edge research, world-class expertise, and real-world applications.”

Built on an existing national network

The AI Advisory Pilot will run for at least six months through the Regional Business Partner (RBP) Network, leveraging 15 regional service providers already working with thousands of small and medium-sized businesses across the country.

Participants will be invited from late January, with the pilot initially available to existing RBP customers to ensure it is tightly targeted and outcomes can be measured.

Expanding into AI support is a natural evolution for the network, with advisors also providing guidance on data protection, privacy, and responsible AI use — areas that many businesses find challenging as adoption accelerates.

Testing what works — at scale

For policymakers and the tech sector alike, the pilot is also an experiment in how targeted, expert-led intervention can accelerate digital adoption and deliver measurable productivity gains.

“The pilot will help us understand what success looks like before scaling this kind of support more widely,” Penk said.

Call to action: early adopters invited

Small businesses already working with the Regional Business Partner Network are encouraged to register interest early to secure a place in the pilot and gain first-mover advantage in adopting AI tools that can immediately improve efficiency and competitiveness.

As AI reshapes how work gets done, the message from Government is clear: the opportunity is here — and support is available now.