New Zealand Adopts a Softly-Softly Approach to Artificial Intelligence

New Zealand (NZ) was initially apprehensive about artificial intelligence (AI) technology, but they have gradually started embracing this modern-day phenomenon.

The Kiwi government chose to take things slowly and adopted a light-touch approach that supports AI but also addresses the risks that come with its development.

Read on as we explore New Zealand's AI approach and what it means for the gaming industry and the closely related iGaming sector as it undergoes regulation.

New Zealand Treads Carefully with its AI Framework

New Zealand’s AI sector is guided by the Public Service AI Framework as part of the constantly-revolving National AI Strategy. 

Not only does this framework promote the responsible use of AI in government agencies, but also ensures they comply with the already-existing laws. 

The Public Service AI Framework is not legally binding but gives AI innovators a structure to deploy the technology in the public sector. This framework has several principles guiding its operation. 

Inclusive and sustainable development is a must. This means the framework will constantly encourage AI to contribute positively to society.

The framework espouses human-centred values, meaning AI always respects human rights and democratic ethos. AI decisions must be understood while taking accountability for their actions.

AI must ensure data integrity and privacy, especially in an age where cybercriminals are constantly looking to steal data. There are also privacy issues that must be taken into consideration.

Google initially had to postpone starting its AI chatbot Bard in the European Union after its main data regulator in the bloc raised privacy concerns.

New Zealand will not introduce any AI act but plans to refurbish the old laws such as the Privacy Act 2020 and the Human Rights Act 1993 to address modern AI problems.

They will only consider intervening with regulations if they need it to unlock something new or address a niggling problem.

The government also plans to use international AI regulations such as the European Union (EU) AI Act rather than creating an entirely new framework.

AI Will Have a Major Impact on the Gaming and iGaming Sectors

The gaming industry was quick to recognise the potential of AI, using it to develop games, improve player experience and address customer disputes.

AI regulations around gaming in New Zealand must follow international AI governance principles to accommodate the problems in digital entertainment and online betting.

AI has transformed game creation and play. Machine learning algorithms are used to create non-player character (NPC) behaviour, personalise gameplay and automatically generate content.

New Zealand is focused on responsible AI, and developers must ensure transparency and accountability in how AI is used in games, especially around data privacy and ethical gameplay.

The Kiwi government is currently establishing a regulatory framework for its iGaming industry, and AI will play a massive role in supporting online gambling services.

The best online casinos in NZ will increasingly use AI to support numerous elements of their operations including customer support, marketing and cybersecurity.

Under New Zealand’s AI framework, iGaming platforms must thoroughly follow the principles of transparency and accountability. 

AI-powered gambling predictions have to be explainable, and there must be privacy safeguards to prevent the misuse of player data.

Challenges Abound for AI in New Zealand

Even though New Zealand is being cautious with its approach, the fact that there is no specific legislation to guide operations undoubtedly leaves room for ambiguity.

With the gaming industry relying heavily on AI, they need sector-specific regulations to address problems such as algorithm bias, ethical monetisation and AI-assisted decision-making.

AI has been growing tremendously and will keep evolving. New Zealand may need to define and refine its regulatory decisions to fall in line with international best practices. 

If New Zealand adopts global AI standards such as the EU AI Act, businesses must adjust accordingly.

New Zealand is prioritising flexibility in its AI approach while safeguarding public trust. This light-touch method will be tested over the coming years.