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ACC says it has taken a range of precautions before testing AI inside its systems.
The Accident Compensation Corporation has had 300 users testing Microsoft's Copilot AI since January.
It is being used in the back office to draft content, summarise meetings and research information and files.
ACC said it had done a privacy risk assessment, a privacy impact assessment, an ethics review, and security assessment and testing on the AI.
Users were trained and had to check whatever AI came up with.
The users "are exploring possible additional uses for this technology", it told RNZ.
In June, ACC confirmed it was axing 300 jobs as part of government-ordered cost-savings, which unions warned would lead to less reliable services.
"In the time ACC has been using Copilot some of the benefits include reduced time and effort writing meeting notes, easier/quicker access to, and summarisation of, information, and [it] has reduced reporting and data processing times," said acting deputy chief executive of enterprise change, Campbell Mackie.
"Copilot abides by existing access and permission controls, drawing information only from sources the user has permissions to access."
ACC said no roles had been replaced by artificial intelligence and there were "no plans to use AI to replace roles at ACC".
ACC said no roles had been replaced by artificial intelligence and there were "no plans to use AI to replace roles".