New Zealand has no laws governing the use of artificial intelligence in creative and commercial work, and the copyright sector is warning the gap is leaving individuals with little recourse when their image, voice or work is used without consent.
Copyright Licensing NZ chief executive Sam Irvine said the country was behind and the situation was urgent.
"At the moment, they're not — but they are now talking about it, which I think is a really good step forward."
He was blunt about what was needed.
"We don't have any AI law and we need it now."
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1News reported on Friday on models who complained clothing company Huffer had used AI-generated images of them without their permission — a claim Huffer denied.
Irvine said the case illustrated a broader problem, and called for a low-cost complaints mechanism so individuals could seek redress without going to court.
"It could be like a small claims tribunal — so that it's able, particularly for an individual, to take action when their work is used without their consent, without credit or any compensation."
More than 100 cases involving complaints against AI companies are now before US courts, including a high-profile dispute in which Hollywood actress Scarlett Johansson threatened legal action after ChatGPT used a voice she said resembled hers without permission.
Marketing expert Bodo Lang said the speed of AI made the lack of rules particularly dangerous. He demonstrated by mocking up an advertisement for chewing gum using an image of the late Queen in around three minutes.
"This is taking me three minutes. It would have probably taken in the old days before AI three days or three weeks."
He said the lack of clear rules was creating confusion for everyone involved.
"I think at the moment the use of AI could be dealt with through numerous avenues and I think it would be useful to have clearer guidance for lawmakers or even consumers — for when they can complain, how they can complain, and what the potential actions are."
Commerce Minister Cameron Brewer had been asked to report to Cabinet on a possible copyright framework for generative AI, but has signalled the complexity of the issue means a report may not be ready until March 2027.
"Issues around AI and copyright are complex, and different countries have taken various approaches," he said.
However, Irvine warned the delay carried real risks — particularly for exporters.
"One of the key things with AI is we need to be very careful what we're doing in New Zealand because that may affect products and services that we then export, which would, for example, contravene whatever the regulations were in the EU. So New Zealand exporters in particular need to be very careful about how they're using AI to produce products and services."
At a trans-Tasman level, Prime Minister Christopher Luxon said this week that business leaders from both countries had been asked to work toward a common approach to AI, data centres and cybersecurity.
"Actually thinking about a common approach and common protocols on those issues would be very helpful," Luxon said.
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