Labour says small businesses are our economy's engine room, as the party launches a new election policy in Rotorua.

It's campaigning on a $2 million annual fund to help smaller businesses adopt AI tools.

It would also go into topping up an advisory group to help with AI use, and boosting mentoring and support.

Leader Chris Hipkins says small businesses want to adapt to this new technology, and they want additional support to make this happen. 

"So that they can weigh up how AI could help them, what the risks of using AI could be - it's just levelling the playing field." 

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