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Opinion
Home / Business

Health innovation: The economic lever New Zealand can’t afford to ignore – Bindi Norwell

Opinion by
Bindi Norwell
NZ Herald·
4 Oct, 2025 01:00 AM5 mins to read
Bindi Norwell is the Group CEO of ProCare

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Bindi Norwell says New Zealand could become the first AI-ready small nation by 2030, improving health outcomes. Photo / 123rf

Bindi Norwell says New Zealand could become the first AI-ready small nation by 2030, improving health outcomes. Photo / 123rf

THE FACTS

  • Investment in health innovation could drive economic recovery by boosting productivity and attracting global talent.
  • The Government says it will invest up to $70 million over seven years to support AI research and applications and develop world-class expertise.
  • A BNZ survey of private healthcare providers found that two-thirds have used or considered AI tools.

Against the backdrop of yet another fall in GDP, economic resilience and growth are top of everyone’s agenda. Yet, while almost all of us are scrambling for quick fixes, one solution is hiding in plain sight: investment in health innovation. It’s time to stop treating healthcare as a cost and start recognising it as the engine of our economic recovery.

Imagine a New Zealand where investment in health innovation doesn’t just save lives. Instead, it also drives productivity, attracts global talent and powers our economy forward. That future is within reach, if we’re bold enough to seize it.

Health innovation has been identified as one way to turning NZ’s economy around. Photo / Supplied
Health innovation has been identified as one way to turning NZ’s economy around. Photo / Supplied
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New Zealand has a chance to become the world’s first truly AI-ready small nation by 2030. That means better patient outcomes, more efficient public services and sustainable economic growth. But only if we act decisively.

Improved population health has driven about a third of economic growth in developed countries during the past century. Health innovation isn’t a luxury – it’s an economic necessity. Advances in medicine have enabled longer, more productive working lives and reduced care needs. In other words, a healthier population is a more productive, innovative and economically resilient one – let alone the export potential of developing health innovations in Aotearoa.

But while other countries are investing heavily in health innovation, New Zealand has fallen further behind. Singapore has invested $150 million to become the world’s top-ranked AI adopter. Estonia has digitised 99% of public services and introduced AI across its education system. Meanwhile, Denmark is upskilling a million citizens in AI.

Singapore has poured $150m into AI and now leads global adoption. Photo / Chang W. Lee, The New York Times
Singapore has poured $150m into AI and now leads global adoption. Photo / Chang W. Lee, The New York Times

So, while countries such as Singapore are using AI to slash wait times and sharpen diagnoses, our clinicians are drowning in paperwork, our nurses are stretched thin and our patients are waiting months for care. We’re short 900 fulltime equivalent nurses. Rural communities are underserved. Burnout is rising.

AI isn’t a silver bullet. But it can help us turn the tide, if we act now.

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Embracing health AI has the potential to allow ICU nurses to prioritise patient care using predictive tools. Photo / 123rf
Embracing health AI has the potential to allow ICU nurses to prioritise patient care using predictive tools. Photo / 123rf

At ProCare, we’ve seen what’s possible. We’ve partnered with Australian innovators such as Heidi Health to support GPs with AI-powered triage and diagnostics. We’ve launched the Health Accelerator to test new tools and position New Zealand as a global proving ground for health AI. But these are just sparks. What we need is a fire – on a national level.

So, what’s the fuel? To accelerate AI in healthcare and use it as an economic lever, we urgently need to:

  • Include a requirement for AI and technology solutions in every contract with Health New Zealand. Let’s stop talking and start testing, especially in diagnostics, patient flow and rural telemedicine.
  • Create a $50m healthcare AI fund. Targeted investment will unlock innovation and help frontline providers adopt proven tools.
  • Embed AI training in every medical school and nursing programme. Clinical AI literacy must be standard for our health workforce, not optional.
  • Support small practices with simple, affordable AI tools. With most healthcare delivered by SMEs, we need to meet them where they are.
  • Establish a fast-track procurement process for government contracts that enables the private sector to test and scale AI solutions safely and quickly.
  • Build partnerships with global healthcare innovation hubs and accelerators to share best practice solutions.

We need to think bigger and act faster.

AI can help a nurse in an ICU prioritise patient care using predictive tools. It can enable a GP in Invercargill to consult with AI-enhanced specialists across the Tasman. It can reduce wait times, improve accuracy of diagnoses and give clinicians more time with patients.

These aren’t futuristic concepts – they’re practical applications. Some are being piloted overseas already and some are waiting to be developed. With the right investment and policy settings, New Zealand can lead the world in safe, equitable and effective health AI adoption and development.

We have the ingredients: a trusted health system, strong institutions and a population open to innovation. What we lack is urgency. If we can overcome our malaise of inaction, we’ve got the ability to improve the health of our workforce and develop solutions that can be exported around the world.

But we aren’t the only ones with this opportunity. Globally, the race is on.

If we want to reverse our economic slide, we must invest in health innovation – not as a cost, but as a catalyst for resilience and growth.

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The real question is: will we lead, or will we lag?

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