A new report warning about the risks of artificial intelligence replacing public servants and weakening democratic accountability has intensified criticism of the Government’s recent move to allow automated welfare decisions.
The report, Algorithmic Government: Of the people, for the people, by AI?, released by the Maxim Institute, cautions against the unchecked expansion of AI within government agencies and warns that decision-making could gradually shift from human oversight to complex systems that are difficult to understand, monitor, or control.
The Public Service Association Te Pūkenga Here Tikanga Mahi says the findings reinforce concerns it has repeatedly raised about the Government’s approach to artificial intelligence and public sector reform.
The union has criticised the passage of the Social Security Modernisation Bill under urgency last week, arguing the legislation opens the door for automated decision-making in welfare services without sufficient safeguards or public debate.
The Maxim Institute report recommends that artificial intelligence be used to support human decision-making rather than replace it, particularly in situations where people’s rights, entitlements, and access to services are affected.
The PSA says AI has the potential to improve efficiency and help public servants work more effectively, but warns there is no international evidence that artificial intelligence can replace large numbers of public sector workers while maintaining service quality and accountability.
The union points to the Government’s reduction of approximately 8,700 public sector positions, arguing there is an increasing expectation that technology will compensate for staffing cuts despite a lack of evidence supporting such a strategy.
The report also highlights the need for a clear national roadmap governing AI use in the public sector and calls for significant investment in workforce training to ensure technology is introduced safely and effectively.
Concerns have also been raised about Māori data sovereignty, particularly as automated systems become more involved in welfare, health, and justice services where Māori are disproportionately represented. Critics argue that greater reliance on algorithmic decision-making risks undermining Treaty obligations and reducing transparency in areas that directly affect Māori communities.
The report warns that governments could gradually become shaped by algorithmic systems that are supervised by people but not fully understood or controlled by them, raising concerns about accountability and democratic oversight.
The PSA is urging the Government to slow the rollout of artificial intelligence in public services, invest in workforce capability, and ensure human judgement remains central to decisions affecting New Zealanders.
The debate comes as governments around the world grapple with how to balance the benefits of emerging technologies with the need to protect democratic institutions, public trust, and individual rights.
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