Public Insights/AI Impact

AI Automation Potential

Which government agencies have the highest potential for AI-driven efficiency gains? Score based on 5 proxy metrics from annual report data.

55

Avg AI Potential Score

6

High/Very High Agencies

$2.6B

Est. Addressable Spend

21

Agencies Analysed

1
Inland Revenue — Te Tari Taake

Est. addressable: $47M

68High

50

75

90

50

75

66High

80

75

75

50

30

3
Commissioner of Police

Est. addressable: $229M

64High

60

75

90

50

30

4
Health New Zealand — Te Whatu Ora

Est. addressable: $1913M

62High

60

60

75

50

60

5
Ministry of Social Development

Est. addressable: $100M

62High

60

60

90

50

45

59Moderate

60

60

75

50

45

8
Department of Corrections

Est. addressable: $191M

57Moderate

45

75

75

50

30

45

75

75

50

30

56Moderate

60

50

50

50

75

52Moderate

50

30

75

50

60

50Moderate

30

45

75

50

60

47Moderate

30

50

75

50

30

17
Te Tai Ōhanga | The Treasury

Est. addressable: $8M

47Moderate

50

30

75

50

30

47Moderate

30

50

75

50

30

19
47Moderate

50

50

50

50

30

44Low

50

30

60

50

30

50

30

45

50

45

Methodology (v1.0)

The AI Automation Potential Score estimates how much of an agency's current operations could be augmented or automated with AI/ML technologies, based on observable proxy metrics from annual reports.

Contractor Intensity25%

High outsourced spend signals work automatable via AI (analysis, reporting, data processing). McKinsey (2023): "30% of outsourced professional services are AI candidates."

Admin Overhead Ratio25%

Higher personnel % of total expenses = more labour-intensive operations. OECD (2024): back-office functions show 40-60% automation potential.

Labour Intensity20%

FTE per $100M revenue. More staff per dollar = more human processes that AI could augment.

Service Delivery Type15%

Transactional agencies (IR, MSD, ACC) score higher than policy-only (Treasury, MFAT). Based on NZ Digital Strategy + Deloitte Gov Trends 2024.

Digital Maturity Signal15%

Count of "AI", "automation", "digital transformation", "machine learning" mentions in annual report. More mentions = more identified use cases.

Estimated Addressable Spend = (AI score % x contractor spend) + (15% x personnel costs x AI score %). This is a rough order-of-magnitude estimate, not a savings projection.

Important: This score indicates automation POTENTIAL, not a recommendation. Not all work should be automated — policy judgment, human empathy, complex negotiations, and democratic accountability require human involvement. The score helps identify where AI could free up human capacity for higher-value work.

References: McKinsey Global Institute (2023) "The economic potential of generative AI"; OECD (2024) "AI in the Public Sector"; NZ Gov (2022) "Digital Strategy for Aotearoa"; Deloitte (2023) "Government Trends 2024".

Data sourced from publicly available NZX filings and annual reports. Our datasets may not be complete. Automated analysis can produce errors. Scores are calculated using disclosed methodology and are analytical tools, not investment ratings or recommendations. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.