Automated Immigration Decision-Making: A $336M Digital Transformation

March 26, 2025 Digital Transformation

Immigration New Zealand (INZ) is embarking on a significant digital transformation journey, with Cabinet recently approving a $336 million project to modernise the immigration system. This ambitious seven-year initiative, known as the "Our Future Services" project, marks a significant shift towards automated decision-making in visa processing.

The Scope of the Transformation

The project encompasses several key components:

  • Automated visa approval decisions
  • Digital ID credential system for migrants
  • E-chip passport reader integration
  • Real-time identity verification
  • Modernisation of online systems
  • Elimination of paper-based applications

Current State and Challenges

Currently, INZ receives approximately 160,000 paper applications annually, representing about 15% of the total visa workload but 42% of the 217 visa types. The existing Microsoft-built Adept system only manages specific visa types and performs individual checks without making final decisions.

Key Objectives

According to Karen Bishop, INZ's general manager of service design and implementation, the programme aims to achieve:

  • Improved operational efficiency
  • Enhanced risk identification and management
  • Greater agility in system modifications
  • Better customer experience

Implementation Timeline and Approach

The project will be delivered in three phases over seven years, with automated decision-making expected to be implemented by 2027. The timeline includes:

  1. Development of automated decision-making standards
  2. Quality assurance process implementation
  3. Testing against human decision-making
  4. Data quality improvements
  5. System integration and deployment

Ethical Considerations and Safeguards

The implementation includes several important safeguards:

  • Automated decisions will only be used for visa approvals, not rejections
  • Clear transparency requirements for automated decision-making
  • Bias management protocols
  • Alignment with policy intent and legal requirements
  • Human oversight for complex cases

Expected Benefits

The project is projected to deliver significant benefits:

  • Annual net savings of at least $80 million
  • Reduced phone support costs (estimated $19 million savings)
  • Lower postage and storage costs ($3 million savings)
  • Improved risk management capabilities
  • Enhanced customer service experience

Risk Management

The Treasury Investment Panel has assessed the project as 'high' risk due to:

  • System complexity
  • Multiple product migrations
  • Staff adaptation to changes
  • Vendor dependency
  • Benefit realisation challenges

Future Outlook

The project represents a significant shift in how immigration services are delivered in New Zealand. By 2031, the last paper applications are expected to be phased out, marking a complete transition to digital processing. This transformation will not only improve efficiency but also enhance New Zealand's ability to manage immigration effectively in the digital age.

Conclusion

INZ's digital transformation project represents a significant step forward in modernising immigration services. While the implementation of automated decision-making brings challenges and risks, the careful planning, ethical considerations, and phased approach suggest a well-thought-out strategy for improving immigration processing efficiency while maintaining quality and fairness.