This article considers why building sovereign AI capability within New Zealand is not just a technological imperative, it is a strategic necessity. Countries like Australia, Germany, Denmark and the EU are already planning and implementing Sovereign AI, while New Zealand remains a customer and not an AI leader.
Many overseas AI models are controlled by foreign laws and trained on data we can’t fully see or understand. That makes it harder for New Zealanders and Māori to be sure those systems meet our privacy rules, legal standards, and expectations around fairness and ethics.
Sovereign AI refers to artificial intelligence systems that are developed, controlled, and operated by a nation or organisation using its own infrastructure, data, and workforce. This approach emphasises technological self-reliance, national security and alignment with local values and regulations.
Māori or Indigenous Sovereign AI, in addition to standard AI sovereignty is a new way of preserving and transforming our ancestral intelligence using mātauranga Māori, tikanga, rangatiratanga, whakapapa, mana motuhake, tapu and noa, tribal lore and cultural protocols to build, create and maintain our digital lands.
Background
Generative AI has impacted every single nation, industry, and business in the world. The market is expected to reach almost $70 billion USD by the end of 2025, and $442 billion USD only six years later.
The benefits of generative AI are no secret, more opportunities for innovation, efficiency, and creativity, to name a few. However, there’s a concern that, because AI is universal, the ability for nations to solve their own problems and uphold their own security will become challenging.
As global competition in AI accelerates, forcing foreign views of morality, privacy and acceptable norms upon non American and non Chinese countries, New Zealand and in particular Māori, must act decisively to secure our digital sovereignty.
Investing in sovereign AI capability that is developed, deployed, and governed domestically and or locally is essential to ensure ethical alignment, operational control, and resilience across key sectors such as defence, national security, law enforcement, intelligence, public services, and critical infrastructure. Sovereign AI development must be co-designed by government, academia, Iwi, Māori communities, and the private sector to ensure national alignment and public value while also recognising Te Tiriti and the uniqueness of our bicultural country.
It doesn’t mean we have to stop using commercial tools or try to compete with big global tech companies. It simply means making sure New Zealand and Māori can make their own decisions about how AI is used, in ways that reflect our values and serve our interests. We need our own systems that we can build, change, and oversee ourselves, especially when national needs are at stake.
Why NZ is vulnerable
Laws and culture
If an AI model is built with a specific country’s laws and culture in mind, this won’t necessarily translate to fair, non-biased, and compliant outcomes in another region, especially when languages and societal values differ.
Privacy
AI models require enormous amounts of data. When that data is processed through external providers and foreign countries, this increases the risk of exposure and mishandling, particularly when the external provider operates under different privacy laws.
Accountability
AI platforms are now used for critical functions such as self-driving cars and healthcare diagnostics. If these solutions go wrong, the provider should be held accountable. This can only happen if they’re within a country’s jurisdiction.
Geopolitics
If a major provider decides to withdraw access to their AI technologies due to geopolitical tensions or tightening regulations, this could put countries and companies out of the AI race entirely.
Submarine cables
Submarine cables are critical infrastructure for global internet connectivity, and New Zealand, like many island nations, relies heavily on them for internet access and communication. However, there are several risks associated with submarine cables that could affect New Zealand’s internet access and overall digital economy. These risks can be grouped into a few broad categories:
- Physical Damage to Submarine Cables
Natural Disasters: Earthquakes, tsunamis, and underwater volcanic activity can damage or break submarine cables. For example, New Zealand lies along the Pacific Ring of Fire, making it susceptible to earthquakes and seismic activity. If a major underwater earthquake occurs, it could potentially damage cables, disrupting internet access. - Fishing and Shipping Activities: Fishing trawlers, anchors, or other shipping activities may accidentally damage cables. A well-known example is the “cutting” of cables by deep-sea fishing vessels or anchors dragging across the seabed. Given New Zealand’s large maritime area, accidental damage is a constant threat.
- Climate Change: Rising sea levels, increased storm activity, and changing ocean conditions could affect the stability and vulnerability of undersea cables, especially in areas that were previously stable.
- Cybersecurity and Data Privacy Risks
Cyberattacks and Espionage: Submarine cables are vulnerable to cyberattacks. If an adversary manages to gain control over the cables or intercept data, it could lead to espionage, theft of intellectual property, or disruption of government and business communications. This is especially concerning for countries like New Zealand, which are strategic players in the Pacific region. - Data Interception: Submarine cables carry vast amounts of sensitive data between countries and continents. If the cables are compromised, it could lead to the interception of personal, governmental, or corporate data. This risk may increase if cables are not properly protected or monitored.
- Strategic Importance: Submarine cables have become an essential part of international geopolitics. Countries or entities could target submarine cables for strategic purposes, particularly in the context of territorial disputes or economic competition. Given New Zealand’s relatively isolated geographical location, any disruption to the cable system could severely impact its economy and communications.
- Global Power Shifts: If dominant global powers (such as the US, China, or the EU) exert control over international cable networks, New Zealand could find itself at a disadvantage, depending on geopolitical shifts. New Zealand’s dependence on external countries for access to global internet infrastructure could leave it vulnerable in the event of international tension.
- Warfare: Foreign war ships are equipped with equipment to cut submarine cables https://www.abc.net.au/news/2025-04-28/undersea-cable-cutter-china-australia-seabed-pacific-islands/105175224.
New Zealand officials have warned the Prime Minister of such threats to New Zealand. https://www.rnz.co.nz/news/national/559165/nz-submarine-cables-are-attractive-espionage-targets-officials-warn - Limited Connectivity and Economic Vulnerability
Reliance on Foreign Infrastructure: New Zealand has limited domestic infrastructure for internet access, and many of its submarine cables are owned or operated by international companies. If something were to happen to these cables, New Zealand’s connectivity could be severely impacted. This is particularly concerning if cables from New Zealand to Australia, the US, or Asia were disrupted. - Limited Cable Diversity: New Zealand only has a three submarine cables meaning that the country could face significant risks if these cables are damaged or disrupted. The lack of diversity in routing and infrastructure could make New Zealand more vulnerable to interruptions in internet service, which could harm industries like finance, healthcare, education, and tourism.
- Marine Ecosystem Impact: The installation, maintenance, or repair of submarine cables could cause disturbances to marine ecosystems, potentially affecting biodiversity and local fishing industries. Damage to cables in fragile marine areas could exacerbate environmental degradation.
- Disruption of Ocean Habitats: In some cases, the laying of submarine cables may disrupt natural habitats, and these effects can have long-term consequences. With increasing demands on communication networks, New Zealand could face debates over balancing environmental protection and the need for more cables to meet rising digital demands.
- Aging Infrastructure: Submarine cables, like all technology, have a finite lifespan. Many existing cables around the world, including those connecting to New Zealand, are aging and may need to be upgraded or replaced. Failure to keep up with the latest technologies could result in slower speeds, reduced bandwidth, or a less reliable network.
- Overload and Congestion: As global internet traffic continues to grow, there is a risk of network congestion. Submarine cables may become overloaded, leading to slower internet speeds, disruptions, or even outages if the infrastructure can’t handle the demand.
- Repair and Recovery Costs: Repairing or replacing damaged submarine cables can be costly, especially if the damage occurs in remote or difficult-to-reach areas. The costs of recovery could be borne by New Zealand’s government or private sector entities, potentially leading to economic strain in the event of a major disruption.
- Disruption to Critical Services: A significant disruption to New Zealand’s internet connectivity could have a cascading effect on critical services, including emergency response systems, banking, transportation, and government operations. The economic losses from such a disruption could be substantial.
Benefits of sovereign AI
Sovereignty allows every government and business to build AI models that comply with local laws and legal instruments for data sovereignty, recognises WAI 2252 Māori Data Sovereignty and Governance and associated legal instruments such as Te Tiriti, He Whakaputanga and UNDRIP. It is also important when adhering to strict data protection requirements such as the Privacy Act, GDPR and rights to Māori Data via.
Data security and data privacy
Sovereign AI ensures businesses know exactly how their data is handled, stored, and processed. Aside from achieving compliance, this also reduces the AI security risk of data breaches and the loss of customer trust.
Tailored solutions: Sovereign AI lets entities build their own models to solve their own problems and cater to local requirements. All of this helps maintain a competitive advantage.
National security
On a broader scale, sovereign AI infrastructure gives a country control over its own systems, which can alleviate cybersecurity concerns and offer a safeguard during geopolitical tensions.
Economic benefits
Developing and maintaining AI onshore requires infrastructure and expertise. AI sovereignty creates new jobs and stimulates investment in upskilling and education, adding value to local economies.
Māori and Iwi Cultural and Te Tiriti Centric Benefits
Māori/whānau/hapū/iwi and groups would retain sovereignty over their own data, mātauranga, narratives, and AI use aligned with Te Tiriti o Waitangi guarantees.
AI systems could be designed to respect tapu/noa and other tikanga.
Language revitalisation would be boosted through tools like voice recognition, chatbots, translation, and education tailored to dialects and contexts.
Sovereign AI mitigates the risks of racial, cultural, or colonial bias found in mainstream or Western trained AI systems.
It would enable the creation of tools tailored for iwi-specific needslike land management, language resources, or health data analysis.
Job creation and innovation would encourage Māori led startups and entrepreneurship in the AI and tech sectors boosting the mere 5% in digi tech Māori have now.
Sovereign AI resists extractive, one size fits all global tech models that marginalise indigenous peoples.
Countries adopting Sovering AI and Tech
Switzerland is stepping into the global artificial intelligence (AI) spotlight with a major announcement: the release of its first open, multilingual large language model (LLM). The initiative represents a significant step toward AI sovereignty, transparency, and linguistic inclusivity. Set for release by the end of summer 2025, the model embraces full open-source access and relies on one of the world’s most powerful supercomputers.
Denmark
A combination of security, economic, political, and societal imperatives is driving the EU’s digital sovereignty moves. EU leaders are seeking to reduce Europe’s dependence on foreign technology providers, primarily those from the United States, and to assert greater control over its digital infrastructure, data, and technological future. Denmark wants to claim “digital sovereignty” and has announced that the Danish government will start moving away from Microsoft Office to LibreOffice and moving data back to servers in Denmark.
Germany
German state Schleswig-Holstein is replacing Microsoft software with open-source alternatives to ensure digital sovereignty and cut costs. Half of its 60,000 public servants will switch, with teachers to follow. Citing geopolitical tensions and digital dependency, officials aim to use public infrastructure and reduce reliance on US tech giants like Microsoft.
European Parliament
Backed by a cross-party coalition in the European Parliament, the EuroStack initiative emerged from a parliamentary event in September 2024 and brings together leading companies, academics, policymakers and civil society. Beyond reducing technological dependence, the initiative seeks to boost industry competitiveness, drive innovation, build resilient sovereign infrastructures, expand mutual networks and harness digital technologies for the common good. A key element of the framework is its commitment to democratic values, social norms and the EU’s sustainability goals.
It proposes an integrated digital “stack”:
EuroChips (semiconductors), SovereignCloud, SmartEurope IoT, DataCommons, Sovereign AI, plus shared services like digital ID and the digital euro.
Australia
As Industry and Innovation Minister Tim Ayres recently emphasised, transformational outcomes require collaboration. Sovereign AI development must follow this model – co-designed by government, academia, and the private sector to ensure national alignment and public value.
Conclusion
New Zealand must urgently prioritise the development of Sovereign AI, not just as a technological upgrade, but as a strategic and cultural imperative. Global powers are rapidly advancing sovereign digital infrastructures, while New Zealand risks falling behind as a passive consumer of foreign technologies that may not reflect our laws, values, or identity.
For Māori, Sovereign AI is about more than digital capability, it is a modern expression of tino rangatiratanga, ensuring that Māori data, mātauranga, and tikanga are protected and empowered through Māori led design and control.
By investing in AI systems that are locally governed, ethically aligned, and culturally grounded, New Zealand can build resilience across sectors such as health, education, defence, and public services.
Sovereign AI also supports economic development, job creation, and language revitalisation, especially for Māori, by creating tools that reflect the unique needs of iwi, hapū, and whānau. This approach resists extractive global tech models and shifts the digital future back into local hands.
To achieve this, government, Māori, whānau, hapū, Iwi, academia, and the private sector must collaborate to co-design a future proof AI strategy rooted in Te Tiriti o Waitangi and a bicultural vision. Sovereign AI is not about rejecting commercial tools, it’s about making sure we, not others, decide how AI serves us.
Disclaimer: Minor parts of this article used ChatGPT to summarise my content and for barnstorming. Overall, the article reflects the author’s own thinking on the topic majority was written by a human. The conclusion was AI generated summary of the article.