The government’s plan for a slimmed-down public service may end up costing Kiwis more
The Labour government’s ambitious overhaul of the public service is relying on a key assumption: that technology, specifically artificial intelligence (AI), can help make the state leaner and more efficient by cutting thousands of jobs. But experts warn this bet is far from a sure thing.
No one disputes that New Zealand’s public service needs to modernize. The current framework, established in the 1970s, is creaky and outdated. But cutting staff numbers to achieve efficiency gains may not be as straightforward as the government hopes.
How much is at stake?
Thousands of jobs on the line
The government’s plan, outlined in the Public Service 2025 strategy, aims to reduce the public service workforce by around 20% over the next five years. That’s roughly 5,000 to 6,000 jobs. AI, the government hopes, will help offset these losses by automating some tasks and improving productivity.
The Ministry of Business, Innovation and Employment (MBIE) has already begun investing in AI projects to streamline processes and cut costs. For example, a new AI system can now automatically process and validate job applications, reducing the workload for human staff.
But will AI really save the day?
The risks of relying on AI
While AI can undoubtedly improve efficiency in some areas, its limitations and potential downsides should not be ignored. For instance, AI systems are only as good as the data they’re trained on, and if that data is biased or incomplete, the resulting decisions can be flawed.
Moreover, AI is not yet capable of replacing many of the complex, nuanced tasks that human public servants perform every day, such as counseling, negotiating, and mediating. These tasks require empathy, creativity, and critical thinking skills that AI systems currently lack.
What this means
A bigger bill for Kiwis
If the government’s plan relies too heavily on AI to offset job losses, it may end up backfiring. If AI is unable to deliver the promised efficiency gains, the taxpayer will ultimately foot the bill. With the public service already facing significant funding constraints, this could lead to even deeper cuts and a diminished capacity to deliver essential services to New Zealanders.
As the government pushes forward with its reform plans, it’s crucial to carefully evaluate the evidence and consider alternative approaches that prioritize human-centered design and the value of public servants’ skills and expertise.
