Proposed law could see government use AI to make decisions about people's benefits

New Zealand’s Ministry of Social Development (MSD) is pushing a controversial law to expand the use of AI in welfare benefit decisions, with the bill introduced under urgency in Parliament. The proposed amendment to the Social Security Act would allow MSD to approve automated electronic systems for decisions, powers, or obligations under specified provisions, framed as a move to ‘improve efficiency and effectiveness’ in the welfare system. The change would broaden existing rules permitting ‘targeted’ automated decision-making, though critics argue it lacks transparency and safeguards. The bill was introduced by National’s Scott Simpson after Social Development Minister Louise Upston was absent, citing MSD’s annual millions of decisions as justification for reducing administrative burdens. Simpson claimed automation would handle ‘simple, rules-based’ cases while preserving human judgment for complex scenarios, promising faster, more consistent outcomes. However, Labour’s Helen White criticized the redacted regulatory impact statement, calling it unclear, while Ingrid Leary linked the push to recent public sector job cuts. Opposition intensified from the Greens, with Ricardo Menéndez March comparing the plan to Australia’s Robodebt scandal, where automated welfare debt collection led to suicides and wrongful victimization. He called the expansion a ‘carte blanche’ power for machines to influence lives, while Te Pāti Māori’s Oriini Kaipara questioned safeguards, citing past MSD failures like disproportionate sanctions against Māori and disabled beneficiaries. Coalition parties like New Zealand First and ACT supported the bill, arguing it would free staff to focus on job placement and ensure human oversight remained. The debate occurred under urgency, limiting scrutiny, with MPs briefly endorsing the bill’s efficiency goals. Critics emphasized the vulnerability of welfare recipients—often marginalized groups—and urged transparency, while supporters defended the move as modernizing the system. The law’s passage would mark a significant shift in how New Zealand administers welfare, with long-term implications for trust, accountability, and equity in public services.