The New Zealand government has enacted a new law permitting the Ministry of Social Development (MSD) to incorporate artificial intelligence in making benefit-related decisions, aiming to update the country’s welfare system.
The Social Security (Modernisation) Amendment Bill successfully passed its final reading in Parliament yesterday, expedited through the House with urgency.
This legislation permits the MSD to authorize an automated electronic system for decision-making, exercising powers, fulfilling obligations, or undertaking related actions under specified provisions, ensuring appropriate safeguards are in place.
The Ministry assured RNZ that these changes would not involve generative AI tools like ChatGPT.
Social Development Minister Louise Upston emphasized that the law will decrease delays, errors, and unnecessary debt, while enabling staff to focus more effectively on supporting clients.
The government has stated that safeguards, including human oversight and measures to prevent bias, will be maintained.
National’s Scott Simpson, who introduced the bill, noted that MSD processes millions of decisions annually, with staff spending excessive time on administrative tasks.
“That’s not good enough for the clients of MSD, or taxpayers. This bill fixes that,” he stated.
The technology will be applied “sensibly,” according to Simpson.
“Automated decision-making will be used for straightforward, rules-based decisions, while human judgment will be preserved where necessary. This approach ensures faster decisions, greater consistency, and a system people can trust,” he explained.
Labour’s Helen White expressed concerns, mentioning that the regulatory impact statement, which outlines the law’s purpose, costs, and benefits, had redacted the section detailing the issue the bill addresses, making it “very, very difficult to know what is going on here.”
She asserted that people should expect human interaction within the welfare system.
“You’re talking about the very group of people who are most disconnected, and it’s very, very important we safeguard that connection,” White commented.
Her colleague, Labour’s Taieri MP Ingrid Leary, argued that the government is using automation to replace staff who could lose their jobs following the Budget.
The Greens’ Ricardo Menéndez March criticized the move as a significant expansion of powers.
“This is a carte blanche expansion to basically allow a robot, a machine, to have power over people’s lives,” he remarked, expressing concern about the bill being passed without consultation or scrutiny.
New Zealand First’s Jamie Arbuckle supported the bill, describing it as a “significant step towards a more efficient, modern welfare system that serves both the taxpayer and those in genuine need.”
ACT MP Parmjeet Parmar also backed the legislation, arguing that it will allow staff more time to assist people in transitioning off benefits and into jobs, with adequate safeguards in place.
“Of course there will be humans there to help… nobody’s taking that human element out,” she reassured.
