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Social Development Minister Louise Upston said it would reduce delays, errors and unnecessary debt, while freeing up staff to better support clients.
The government says a new law, which will allow the Ministry of Social Development (MSD) to use AI to make benefit decisions, will modernise New Zealand's welfare system.
The Social Security (Modernisation) Amendment Bill passed its third reading in Parliament on Friday, rushed through the house under urgency.
The law allows MSD to "approve the use of an automated electronic system by a specified person to make any decision, exercise any power, comply with any obligation, or take any other related action under any specified provision, with appropriate safeguards".
