A new fund that aims to create 150,000 new jobs over the next four years has been established by the New South Wales Government.

It has appointed Telstra boss David Thodey as chair of the fund and put $190 million into the new body.

The initiative will be led by the private sector, which will work with government to attract and retain businesses that provide jobs to NSW.

Premier Mike Baird said having a dedicated fund would help capitalise on employment opportunities in emerging industries.

"We'll look at the opportunities, look at the sectors, where are they growing, how are they growing and what role can we play," he said.

"We obviously have current competitive advantages but if we can get in early on a wave of new jobs, new industries, well that's exactly what we'll do. So we're open to anything."

Mr Thoday said it would play a vital role in keeping the state's economy going.

"Digital enablement and all these new technologies like artificial intelligence are creating real disruption, it's changing the nature of the workforce," he said.

"So we need to be smarter in terms of how we go forward as a state and as a nation.

"I think our challenge as leaders and as a state is how we stare into this, and not see it as disruption but as opportunity."

The fund replaces the State Investment Attraction Scheme (SIAS) and Regional Industries Investment Fund (RIIF).

Mr Baird said a minimum of 30 per cent of the Jobs for NSW fund would be allocated to regional areas.