AI solutions New Zealand: How NZ Businesses Use AI?

Introduction

Artificial Intelligence (AI) has rapidly moved from being a futuristic concept to a practical tool driving business transformation worldwide. In Kiwi country New Zealand, this shift is particularly evident. According to Datacom's 2025 State of AI Index, AI adoption has surged, with 87% of businesses now using some form of AI, compared to 66% last year and just 48% in 2023. Among these, 28% are deploying advanced AI solutions, 48% leverage business-specific AI, while 87% rely on basic tools to streamline their operations. This upward trend highlights how deeply AI is becoming embedded across industries, with SMEs leading the charge in integrating AI to stay competitive.

At the forefront of supporting this transformation is SotaTek ANZ, a trusted technology partner delivering AI-driven solutions to enterprises across Australia and New Zealand. With a strong team of experts and global experience, SotaTek ANZ delivers AI Solutions New Zealand to its partners to thrive in an increasingly digital economy.

What is AI in New Zealand? Overview of Enterprise AI adoption New Zealand

AI is one of today’s most transformative technologies, shaping how we work, live, and do business. At its core, this technology refers to computer systems that can perform tasks usually requiring human intelligence, such as recognising speech, making decisions, translating languages, or understanding images. In simple terms, AI can be thought of as a “smart helper” inside computers and phones to learn, adapt, and support people across industries and daily life.

AI in New Zealand is not just a trend but a necessity. “AI could add $76 billion to our GDP by 2038, but we’re falling behind other small, advanced economies on AI-readiness and many businesses are still not planning for the technology,” says Science, Innovation and Technology Minister Dr Shane Reti. While global competitors are accelerating their AI integration, many Kiwi enterprises remain cautious. Adoption is uneven, some industries, such as finance, healthcare, and agriculture, are experimenting with AI-driven solutions, while others are still in early exploration stages. The gap between potential and practice reflects both opportunity and urgency.

For New Zealand businesses, building stronger AI capabilities is not only about technology. It’s about future-proofing operations, boosting productivity, and unlocking new growth. Embracing enterprise AI will help ensure New Zealand stays competitive in the global digital economy.

Use Cases of AI Solutions New Zealand

AI Adoption in New Zealand by Industry Category

How Are AI Solutions New Zealand Adopted?

AI adoption in New Zealand is being driven by practical, high-impact applications that streamline processes, reduce costs, and improve efficiency. The top five areas where businesses are seeing the greatest value from AI are:

  • Administration: Automating repetitive tasks such as scheduling, document management, and data entry, which reduces manual workload and boosts productivity.
  • Marketing: Leveraging AI-powered analytics and personalization tools to process large volumes of customer data, enabling targeted campaigns and stronger engagement.
  • Software Development: Using AI for coding, testing, and debugging to accelerate development cycles, reduce human error, and improve software quality.
  • Project Management: Applying AI to analyze project data, monitor timelines, and optimize resources. This helps track progress more accurately and generate real-time insights.
  • Design: Enhancing creative workflows through AI-based tools for editing, manipulation, and digital content creation, making design faster and more efficient.

These use cases dominate because they deliver rapid productivity gains and an immediate return on investment (ROI). Unlike sectors such as manufacturing, which require significant upfront training and infrastructure, these digital-first business functions are easier to integrate with existing workflows.

At the same time, they present lower risks of negative impact. Since these areas generally involve less sensitive personal data, businesses face fewer compliance and privacy concerns. This allows organizations to adopt AI more confidently and experiment with new solutions.

Challenges of Adopting AI Solutions New Zealand

Lack of Understanding and Awareness

A major barrier to AI adoption in New Zealand lies in limited understanding at both executive and operational levels. According to surveys, while 78% of organizations acknowledge AI’s potential impact, only 36% of company boards are actively discussing it. Misconceptions fueled by dystopian media portrayals and the invisibility of well-deployed AI make it difficult for leaders to recognize its practical business value. This knowledge gap results in delayed decision-making and hesitation to integrate AI into strategic planning.

Limited Scale and Data Availability

New Zealand’s relatively small market size poses challenges for scaling AI solutions. Small and medium-sized enterprises (SMEs), which make up the majority of the economy, often lack the capital and resources to invest heavily in AI. Moreover, the country’s smaller population means fewer localized datasets are available for training AI systems, which can lead to reliance on imported data and reduced model accuracy. Ensuring access to quality, context-specific data is critical for AI to deliver meaningful outcomes in New Zealand’s unique business and societal landscape.

Skills and Education Gaps

The shortage of AI-related skills is another pressing challenge. Traditional education providers and training programs are still catching up in equipping the workforce with the necessary technical and business-oriented AI capabilities. Without a robust talent pipeline, businesses face difficulties in developing, implementing, and maintaining AI solutions. Although freely available online machine learning tools provide entry points, a structured national approach to AI education and upskilling is needed to foster long-term competitiveness.

Trust, Ethics, and Regulatory Concerns

Concerns around privacy, security, and ethical use of AI further slow adoption. In New Zealand, the top concerns associated with AI use are reliability and errors (87%), security vulnerabilities (85%), and privacy issues (85%) (Deloitte, 2024). Nearly 40% of surveyed organizations also cited data privacy and cybersecurity risks as key barriers. In addition, New Zealand’s current copyright and data mining laws limit how organizations can collect and leverage data for AI training. Ethical considerations, such as bias in AI systems or potential misuse for surveillance and manipulation, add further complexity. Building a strong regulatory framework and clear guidelines will be essential to balance innovation with responsible AI deployment.

The Future of AI in New Zealand

AI in New Zealand is moving from cautious testing to real integration. Adoption is steadily increasing, with larger firms leading the way and smaller enterprises benefiting from affordable, off-the-shelf AI solutions. As implementation costs fall, AI is becoming accessible not only to major corporations but also to SMEs, enabling wider experimentation and innovation.

The economic upside is clear. Nearly nine in ten organizations using AI report measurable productivity gains, particularly in reducing operational costs, improving decision-making, and enhancing customer experience. Sectors such as marketing, administration, and software development are already experiencing efficiency boosts, pointing to AI’s ability to reshape workflows across industries.

AI positive impacts in New Zealand businesses

AI positive impacts in New Zealand businesses

Importantly, AI is not replacing the workforce but reshaping it. Businesses are seeing fewer needs for new hires as current teams become more productive, while leaders increasingly recognize AI as a strategic tool to support growth. Surveys suggest that New Zealand CEOs are more optimistic than their global peers, with 70% reporting that AI makes employees more effective.

Looking ahead, New Zealand has an opportunity to position itself as a regional leader in human-centered AI. By investing in education, expanding AI literacy, and fostering collaboration between government, business, and research institutions, the country can unlock both economic and social value. At the same time, building robust governance frameworks and supporting inclusive engagement—particularly with Māori and Pasifika communities—will ensure that AI adoption strengthens trust and equity.

If these elements come together, the future of AI in New Zealand will not just be about technology deployment. It will be about building a sustainable, inclusive, and globally competitive digital economy powered by AI.

Conclusion

AI is no longer a distant vision for New Zealand. It is here, reshaping industries, boosting productivity, and creating new opportunities for growth. While challenges around skills, trust, and inclusivity remain, the momentum is undeniable. With the right strategies, governance, and partnerships, New Zealand can position itself as a regional leader in responsible, human-centered AI adoption. For businesses, the next few years represent a pivotal window to move beyond experimentation and harness AI at scale to drive lasting competitive advantage.

Ready to transform your business with AI? Partner with SotaTek ANZ, Top Best Provider for AI Solutions in Australia and New Zealand, who owns deep expertise in delivering end-to-end AI and digital transformation solutions. Our dedicated team helps enterprises design, implement, and scale AI strategies that drive real-world results. Contact SotaTek ANZ today and take the next step toward future-ready growth.

New Zealand released its first national AI strategy in 2025, focusing on practical adoption to boost productivity and innovation rather than building large-scale AI models. The strategy emphasizes a responsible, values-based approach, aligning with OECD principles on fairness, transparency, and safety. Alongside it, the government introduced Responsible AI Guidance for Businesses, a voluntary toolkit to help organizations adopt AI safely. Rather than new AI laws, New Zealand is taking a light-touch, principles-based regulatory approach, while investing in research, skills, and public sector leadership to build trust and drive growth.

Yes. AI adoption is growing rapidly across New Zealand businesses. According to Datacom’s 2025 State of AI Index, around 87% of organizations already use some form of AI. Common applications include automating administrative work, improving customer service with chatbots, optimizing supply chains, enhancing software development, and supporting data-driven decision-making.

AI is reshaping the workforce by automating repetitive tasks and enabling employees to focus on higher-value activities. While some businesses have reported reduced hiring needs due to efficiency gains, others are creating new roles in areas such as data governance, AI ethics, and digital transformation. Upskilling and reskilling are essential, as AI adoption highlights the need for workers with both technical and problem-solving skills.

There isn’t a single “best” provider, as it depends on the industry and business needs. Leading players include local firms such as Datacom, which publishes the annual AI Index and provides enterprise AI services, and research-driven organizations like the AI Forum NZ. At the same time, global providers such as Microsoft, Google, and AWS also play a major role in supplying AI platforms and cloud infrastructure to New Zealand businesses. Many companies take a hybrid approach, working with both local expertise and international technologies.

About our author
The An
SotaTek ANZ CEO
I am CEO of SotaTek ANZ, bringing a wealth of experience in technology leadership and entrepreneurship. At SotaTek ANZ, I strive to driving innovation and strategic growth, expanding the company's presence in the region while delivering top-tier digital transformation solutions to global clients.