On 9 September 2026, Labour leader Chris Hipkins and its science, technology and innovation spokesperson Reuben Davidson announced Labour’s AI Action plan (Plan). 

The headline commitments

Labour has said it will: 

• establish an Office of AI to coordinate AI policy across government;
• establish an online safety regulator within the Department of Internal Affairs;
• develop a copyright framework so that creators control and are paid for their work;
• set clear rules for data centres.

You can read Labour’s release here, and its AI in New Zealand’s Interests approach here.

Office of AI

The Office of AI would sit within the Department of the Prime Minister and Cabinet and be established using existing resources. Its role would include coordinating AI policy across government, developing proportionate standards for responsible AI use, preparing a long-term workforce plan with working people, employers, unions and industry, setting expectations for government procurement, promoting consistency and transparency across the public service, and identifying emerging risks and opportunities. A senior minister would carry portfolio responsibility for AI, and a whole of government work programme would be published so that New Zealanders can see what action is being taken.

Online safety regulator

Labour would establish an online safety regulator that is initially housed within the Department of Internal Affairs, with the option of establishing it as an independent regulator outside the Department given the significance of the issues involved. The regulator’s mandate would be broader than administering a social-media minimum-age regime and would extend to advising Government on emerging issues and helping to seize the opportunities of AI while managing the risks. This builds on the online safety framework proposed under the current Government’s Online Safety (Minimum Age and Child Safety Risk Assessment) Bill, which we have covered in a separate update, available here. Labour would also expand an AI Expert Advisory Panel, bringing together technical and legal experts, small business, unions, the arts, and iwi/Māori, to report directly to Ministers on emerging issues as the technology develops.

Copyright framework 

Labour has committed to developing a framework for the use of copyrighted material by AI, addressing how creators can control and be remunerated for the use of their work. Labour has said that it would work with creators, publishers, technology companies and other stakeholders to get the settings and enforcement right.

Data centres 

Labour would require data centres to pay their own way by securing their own renewable energy supply, paying for their own connection costs, reducing electricity demand during peak stress periods on the grid, and using water efficiently. Labour’s rationale was that New Zealand households should not be subsidising the power bills of overseas technology companies. For more on data centres and digital infrastructure in New Zealand, listen to our recent podcast on New Zealand’s digital infrastructure opportunity here, and read our update on how New Zealand can realise its data centre opportunity here.

Other commitments

The Plan contains several further commitments, including that Labour will:

• establish an AI in Education team to support schools, teachers and students;
• look at how to strengthen New Zealand’s control over its data while establishing clear standards around how personal information can be used;
• work closely with Australia to align AI standards and approaches where doing so benefits New Zealand, while also working with Pacific countries to ensure safety and security;
• identify gaps in New Zealand law and strengthen protections where needed, including a ban on non-consensual deepfake pornography (although we note that the Deepfake Digital Harm and Exploitation Bill is currently with the relevant select committee, and would make non-consensual deepfake pornography an offence);
• work with iwi and hapū on how Māori data is collected, owned, governed and used;
• support small businesses to adopt AI safely by establishing an AI small business fund, extending the AI Advisory Pilot, and increasing the Founder and Startup Support Programme;
• take steps to understand the full lifetime cost of adopting AI across the public service; and
• work with businesses and unions around what skills people need, and how to ensure that productivity gains from AI flow through to wages and working conditions.

Public service use of AI

Labour has said that AI can help people make better decisions but should not make decisions about people’s lives on its own. It has singled out the current Government’s law change allowing automated decision-making within the Ministry of Social Development. A Labour-led government would set clear expectations for human oversight and accountability in the public service, and would review how existing privacy, consumer, and employment protections apply to AI. When a government decision affects a person’s access to a service, a person must remain accountable for that decision.

Five tests

Labour said that five tests would guide the decisions of any Labour-led government on AI:

• Are the gains shared beyond those who own the technology?
• Do people have a real say about how AI is used in their workplaces?
• Does a human still have meaningful oversight and accountability for government decisions that affect people’s lives?
• Are AI companies using energy, water and land responsibly and carrying their fair share of the costs?
• Do New Zealanders retain control over our data, creative work and infrastructure?

Following in Australia’s footsteps

The Plan draws heavily on the framework announced by the Albanese Government on 15 July 2026, which likewise centres on an Office of AI, protections for creative works used to train AI, and enforceable standards for data centres. Hipkins made no apologies for the similarities, saying alignment with Australia would create more certainty for the creative and business communities that work across the Tasman. Our earlier analysis of the Australian framework is available here.

What happens next? 

Labour’s policy document does not set out the cost of the measures announced. The Plan does, however, indicate the direction that AI policy in New Zealand could take under a Labour-led government.

How we can help

MinterEllisonRuddWatts advises organisations on AI governance, workforce engagement and organisational change, technology procurement, data centre investment, copyright and content regulation, and online safety compliance. If you would like to discuss how this policy direction may affect your business, please contact one of our experts.

This article was co-authored by Zach Kirby, a Solicitor in our Corporate and Commercial team.