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economic-development governance

AI Policy Sandbox (AIPS)

A transparent NZ sector-calibrated policy sandbox for testing AI policy tradeoffs under uncertainty. Covers all 19 sectors of the New Zealand economy with three policy scenarios.

Organisation: AI for Good New Zealand · Last updated: 2026-04-18
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AI Policy Sandbox (AIPS)

Impact

10 research analyses completed, 38 data sources catalogued, 348-cell sector parameter table created, whole-economy tiered structure covering all 19 ANZSIC Level 1 sectors. Foundation phase - model equations next.

Ethics & Responsibility

Open source (MIT licence), transparent assumptions labelled as observed/derived/assumed, designed for policy comparison under uncertainty rather than false-precision forecasting.

Project Details

About AIPS

New Zealand’s AI policy conversation rests on a fragmented evidence base. Adoption figures in circulation range from 32% to 87%. No two sources measure the same thing. Policy built on any single number is standing on weak ground.

AIPS replaces single-number thinking with a structured, sector-calibrated framework that compares different policy designs under uncertainty.

What it does

The sandbox compares three policy approaches across New Zealand’s full economy:

  • Aggregate policy - broad economy-wide allocation by GDP share
  • Targeted demand-side - support focused on sectors where adoption is lagging or bottlenecks are acute
  • Targeted supply-side - investment in enabling capacity: technology, skills, infrastructure, and diffusion

Sector coverage

The model uses a tiered structure covering all 19 ANZSIC Level 1 sectors. Nine Tier 1 sectors carry full explanatory depth, each representing a distinct adoption archetype - from agriculture (no published adoption rate, long diffusion timeline) to technology (supply-side enabler, $24B GDP).

Current status

The project is in foundation phase. The analytical framework, evidence base, and state-variable specification are built. First-pass model equations are next. The target output is a peer-reviewed paper and an open-access interactive web tool.

Get involved

The project welcomes sector specialists, economists, policy analysts, and AI practitioners. See the full project page or explore the GitHub repository.

Get involved

Visit the project site to learn more or connect with the team.

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