TL;DR:
- In 2017, the New Zealand government signed MOU with Microsoft to advance AI learning in schools and digitalize government services.
- The MOU outlined the role of the government’s chief digital officer in working with the Ministry of Education and the Department of Internal Affairs on a “lighthouse” project to integrate AI and digital capabilities into the country’s educational system.
- The project never came to fruition, but the Ministry of Education continues partnerships with Microsoft and Google, offering schools free access to AI-powered software.
- Microsoft established a cloud service region in New Zealand in 2020 and became one of the largest cloud service providers in the country.
- The MOU with non-disclosure and confidentiality clauses provides Microsoft with a significant advantage over local companies and outlines areas of cooperation between the government and Microsoft.
- In 2021, Microsoft took over 5 million citizens’ digital identity accounts and transferred them to its servers in Australia.
- The MOU envisioned the establishment of a “digital identity” framework under one of three projects, with the second project researching questions of sovereignty and citizenship in a digital world.
- The MOU remains a significant agreement, outlining the potential for collaboration in the digital transformation of New Zealand.
Main AI News:
In 2017, the New Zealand government made a historic and significant step in the field of AI and technology by entering into a memorandum of understanding (MOU) with US tech giant Microsoft. The agreement, which was kept confidential for several years, aimed to advance AI learning in schools and help the government digitalize its services by exploring questions of sovereignty and citizenship. The MOU specifically outlined the role of the government’s chief digital officer in working closely with the Ministry of Education and the Department of Internal Affairs on a “lighthouse” project to integrate AI and digital capabilities into the country’s educational system, with the goal of enhancing educational outcomes for all students.
However, despite the initial excitement and potential of the project, it never came to fruition. The Ministry of Education confirmed that while there were exploratory meetings with Microsoft and the chief digital officer, no agreement was reached to move forward with the project. Despite this setback, the Ministry of Education continues to have strong partnerships with both Microsoft and Google, offering schools free access to AI-powered software, including the popular game Minecraft.
In 2020, the MOU was updated, and the government announced Microsoft’s plans to establish a cloud service region in New Zealand, taking advantage of the country’s abundant renewable electricity. This move was expected to provide cloud access in new and innovative ways, further solidifying Microsoft’s position as one of the largest cloud service providers in the country. In 2022, Microsoft’s local revenues surpassed $1 billion, with the company paying $11 million in taxes. While Microsoft declined to comment on the MOU specifically, it remains a major player in the New Zealand technology and AI landscape.
The memorandum of understanding (MOU) signed between the New Zealand government and Microsoft in 2017 and updated in 2020 included non-disclosure and confidentiality clauses. The MOU was co-signed by the government’s top data officer, Paul James, who serves as the CEO of the Department of Internal Affairs (DIA). Both DIA and the Ministry of Education are signatories to a charter committing them to transparency in the use of algorithms.
The MOU provides Microsoft, a $2 trillion corporation, with a significant advantage over local companies, as no other company has a high-level agreement of this nature. While the MOU does not commit either party to take specific actions, it outlines areas of cooperation between DIA and Microsoft. In contrast, Microsoft’s rival Amazon signed a similar MOU with the government in December 2021.
The MOU is non-binding, but it paves the way for collaboration on shifting public data into Microsoft’s cloud computing data centers in Australia and eventually in New Zealand. It also gives Microsoft a voice in discussions regarding government barriers to setting up “hyperscale” data centers. The MOU outlines that policies that may impede the adoption of hyperscale cloud services will be identified and discussed, with Microsoft offering insights on how other countries address these issues and working together with the government on possible solutions.
The MOU update in 2020 was aimed at launching two “lighthouse” projects, one of which was the education AI project. The other project was aimed at helping small and medium businesses navigate digital disruption and upskill New Zealanders. The status of this second project is unclear. DIA stated that the education AI project did not proceed and was not made public, but if it had gone ahead, details would have been shared with the public.
In 2021, the Department of Internal Affairs (DIA) made good on one of the initiatives outlined in the 2017 memorandum of understanding (MOU) with Microsoft. Microsoft took over 5 million citizens’ RealMe digital identity accounts and transferred them to its servers in Australia, a task that the company said required “above all, trust” from citizens. A leading DIA manager was quoted as calling it “the promised land.”
The MOU envisioned the establishment of a “digital identity” framework under one of three projects, with the Fletcher Centre at Tufts University in the US being the third key participant. Microsoft and the Bill and Melinda Gates Foundation have been recorded as donors to the Fletcher Centre. The second project involved researching questions surrounding sovereignty and citizenship in a digital world and the potential application of advanced technologies, such as AI, machine learning, big data analytics, and the Internet of Things, to improve the public sector in a trust-preserving and enhanced manner.
The three projects were set to kick off with three workshops in Wellington, with Microsoft, not the government, providing strategy, policy, and technical resources at the first workshop. Both DIA and the Ministry of Education are signatories to a charter committing them to transparency and accountability in the use of algorithms related to AI.
DIA stated that it was already in the process of releasing the MOU before being asked about it by RNZ in early April. The MOU between the New Zealand government and Microsoft remains a significant and far-reaching agreement, outlining the potential for collaboration in the digital transformation of the country.
Conlcusion:
The memorandum of understanding (MOU) signed between the New Zealand government and Microsoft in 2017 and updated in 2020 remains a significant and far-reaching agreement in the field of AI and technology. Despite the scrapped deal to advance AI education in schools, Microsoft continues to be a major player in the New Zealand technology landscape, establishing a cloud service region in the country and taking over 5 million citizens’ digital identity accounts.
The MOU provides Microsoft with a significant advantage over local companies, outlining areas of cooperation with the government and paving the way for collaboration on shifting public data into Microsoft’s cloud computing data centers. The MOU remains a potential for collaboration in the digital transformation of New Zealand and highlights the government’s commitment to transparency in the use of algorithms related to AI.
