How does New Zealand's AI Advisory Pilot fund AI for small businesses?

01What is the AI Advisory Pilot?

The AI Advisory Pilot is a New Zealand Government grant, delivered through the Regional Business Partner Network (RBPN), that co-funds expert help for small businesses to plan where AI can add value and then put it into practice. It runs in two stages, an AI roadmap and then implementation, and your business pays at least half of the cost.

The business.govt.nz Funding Explorer page for the AI Advisory Pilot (last reviewed 22 September 2026) describes two stages¹:

• AI roadmap (planning). Assess your business needs, identify opportunities to use AI and develop a plan for implementation.
• Implementation. Put AI into your business processes and support your team to use it.

The pilot launched in January 2026. Human Resources Director reported on 19 May 2026 that Small Business and Manufacturing Minister Cameron Brewer had expanded the pilot from 50 businesses to 150² and widened eligibility. For where AI fits in a small firm's marketing, start with the guide to AI marketing for NZ small business.

02How much does the AI Advisory Pilot pay?

The pilot pays up to 50% of eligible costs, with a ceiling of $2,500 towards an AI roadmap and $12,500 towards implementation support, so $15,000 at most across both stages. Your business pays at least the other 50%. Funding is limited and allocated competitively, so meeting the criteria does not guarantee you a place.

Worked through: a roadmap costing $5,000 could attract up to $2,500, and an implementation project costing $25,000 could attract up to $12,500. Above those amounts the grant stops at the cap and the business pays the rest. The official page does not say whether the caps include GST, so ask your growth advisor. To compare with unsubsidised prices, see the guide to AI marketing costs in Australia and New Zealand.

03Who is eligible for the AI Advisory Pilot?

An eligible business has a New Zealand Business Number (NZBN), fewer than 50 full-time equivalent employees, and an established operation that is ready to explore practical uses of AI. Māori trusts and incorporations are included. The goal must be productivity and efficiency inside your own business, which describes most 5 to 49 person firms that are curious about AI.

The criteria on business.govt.nz, checked 8 October 2026:

• Business type. A New Zealand business with an NZBN, including Māori trusts and incorporations.
• Size. Small to medium, with fewer than 50 full-time equivalent (FTE) employees.
• Stage. Established and ready to explore practical uses of AI.
• Goal. Improving productivity and efficiency using AI.

The size test counts FTE, so a business with more than 50 people on the books, some part-time, may still fall under the line. The page does not define "established" in years of trading; your growth advisor makes that call.

04What the AI Advisory Pilot will not pay for

The pilot excludes AI products or services built to sell, general software or product development, training unrelated to implementing AI, work completed before funding is approved, and costs outside the agreed project scope. The last two catch owners most often: start early, or let the scope drift, and that spend is yours alone.

• Products for sale. An AI feature inside a product your customers buy is out of scope. The pilot covers AI in how your business runs.
• General development. A new app or website with an AI label on it is still software development.
• Early work. Hold off on signing a contract or paying a deposit until approval is confirmed.
• Scope creep. Anything added after the scope is agreed falls outside it. Raise changes with your growth advisor first.

05How do you apply for the AI Advisory Pilot, and when does it close?

You apply by registering your business with the Regional Business Partner Network and speaking with a growth advisor, who will confirm whether the pilot suits what you want to do. Business.govt.nz estimates four to 12 hours of effort. As at 8 October 2026, the official page says the pilot is open until 30 June 2027.

1. Register with the RBPN using the link on the official AI Advisory Pilot page on business.govt.nz¹.
2. Talk to a growth advisor about the jobs you want AI to take on.
3. If the pilot fits, complete the application and agree the project scope.
4. Wait for funding approval before any work starts.

The closing date has moved, which is why older articles disagree. First planned as a six-month run, the pilot was extended in May 2026 to 31 January 2027. On 22 September 2026, Inside Government reported the Minister's announcement that the pilot would run until 30 June 2027 with a further 120 places³, and that around 150 businesses had joined since January. The business.govt.nz page now shows 30 June 2027 as the official date.

Because places are limited and allocated competitively, the practical deadline may arrive first. Confirm the current date and remaining capacity with your growth advisor.

06What is the Management Capability Development Fund?

The Management Capability Development Fund is a separate RBPN subsidy for management training. It pays up to 50% of one-to-one training and up to 75% of group training, capped at $5,000 per business each year, so the business pays at least 50% or 25% respectively. Marketing is an eligible subject, and AI appears as a group digital-tools subject.

The business.govt.nz page for the Management Capability Development Fund (last edited 3 August 2026) sets the cap at $5,000 per business each year⁴ and lists marketing, strategy and digital technology and tools among its training areas. The size rule matches the pilot: established New Zealand businesses with fewer than 50 FTE, including Māori trusts and incorporations managing Māori assets. Funding is available while it lasts, and only for approved training from registered service providers.

The detail sits on the RBPN eligible service subjects page (last reviewed 21 July 2025), which lists AI under group digital tools training⁵. For marketing and AI, two points matter:

• Marketing is eligible in both formats. Group (one-to-some) training covers marketing fundamentals. One-to-one training covers marketing strategies, including "digital marketing strategy and social media planning".
• AI appears under group training. Artificial intelligence sits in the one-to-some digital tools subject, next to CRM and booking systems. The one-to-one list does not name AI.

Exclusions on the same page that matter for marketing and AI work:

• Consultancy that does the work for the owner. The fund pays for training and coaching owners to do it themselves.
• Diagnostic and assessment services, including digital systems audits.
• Website design, development and build, and implementation consulting.
• Software-specific technical and product training, such as Microsoft Office, Xero or MYOB courses.
• Services already subsidised through other government funding.

The RBPN's becoming a service provider page confirms the business contributes at least 50% for one-on-one training and at least 25% for group training⁶. Providers need a New Zealand base, an NZBN, Professional Indemnity insurance of $1 million or more and a track record of training small businesses. The network wants organisations that teach and upskill others, so hands-on implementation firms sit outside this pool.

Xero's research published in May 2026 found 47% of New Zealand small and medium businesses said practical training and workshops would help them feel more confident using AI⁷. Xero does not give a sample size on the page.

07AI Advisory Pilot vs Management Capability Development Fund: how do they compare?

The AI Advisory Pilot pays for expert help to plan and implement AI inside your business. The Management Capability Development Fund pays for training that builds your own management skills, including group AI courses and one-to-one digital marketing strategy. The first funds a project done with you; the second funds what you and your managers learn.

All figures are from business.govt.nz, checked 8 October 2026.

08How to prepare before you talk to a growth advisor

Arrive with your NZBN, your FTE count and two or three specific jobs you want AI to take on, each with the hours it takes now. A growth advisor can judge fit much faster from concrete tasks than from a general interest in AI, and the hours give you a baseline to measure the project against later.

1. Your NZBN and legal business name.
2. Your FTE number, worked out from hours.
3. Two or three tasks where AI might help, such as answering enquiries or monthly reporting, with the weekly hours each takes.
4. The tools you already pay for, since most AI work connects to your CRM, accounts or website.
5. An owner inside the business who will review AI output after the provider leaves: your human in the loop.
6. Your budget for your share, at least half of each stage, plus anything outside scope.
7. Any work already under way. Work completed before approval is not funded.

If marketing is where you expect AI to help, the guide to building an AI marketing strategy for a small business sharpens the roadmap stage, and the guide to AI marketing transformation shows what implementation looks like.

09What to ask a provider before you sign

Ask every provider to confirm which programme they are approved for, the AI Advisory Pilot or the RBPN service provider pool, and to show you a roadmap or implementation they have delivered. Then ask who owns the systems, accounts and prompts once the project ends, and how scope changes are handled.

• Are you an approved provider for the AI Advisory Pilot, or a registered RBPN service provider for the Management Capability Development Fund? Which one applies to this quote?
• Can I see an example roadmap with client details removed?
• Will the tools and automations run on accounts my business owns?
• Who on my team will you train to run it, and how long does support last after handover?
• How will we measure whether it worked, starting from the hours I gave you?
• Are you independent of the software you recommend, or do you resell it or earn commission on it?

Some providers have announced their status publicly. The Icehouse announced on 22 January 2026 that it had been selected as an approved service provider for the RBPN AI Advisory Pilot⁸, working with Harnex on the technical side. Ask your growth advisor for the current list. The guide to AI agencies and AI consultants in NZ covers how advisers and builders differ.

10Where Flow AI fits

Flow AI is an AI marketing transformation practice: the strategy, the systems and the agents that run a marketing function, engineered end to end. Flow AI is not an approved provider for the AI Advisory Pilot and is not a registered RBPN service provider, so work with Flow AI cannot be funded through either programme.

Amber Lan is an AI marketing engineer in Auckland who builds marketing systems on a business's own accounts. Flow AI can give a second read of a roadmap another provider wrote, or take on a contract build outside both funds. The skill library is public.

11The short version

The AI Advisory Pilot co-funds up to half the cost of an AI roadmap (up to $2,500) and implementation (up to $12,500) for businesses with an NZBN and fewer than 50 FTE. Places are limited and competitive. Apply through an RBPN growth advisor before the official close of 30 June 2027, and confirm that date with them.

The Management Capability Development Fund is the training route: up to 50% of one-to-one and up to 75% of group training, capped at $5,000 a year, with AI available as a group subject. Prepare your tasks and hours before the first conversation, and ask every provider which programme they are approved for.

For a second view on an AI plan, or a contract build outside these programmes, talk to Amber.