NZ digital leaders: urgent action required on tech priorities

A new report from the Technology Users Association of New Zealand (TUANZ) has revealed a critical set of digital priorities for 2025, urging the government to address escalating cybersecurity risks, the widening tech talent gap, and persistent digital inequities. 

The Digital Priorities 2025 report, now in its fifth year and produced in collaboration with One New Zealand and TechLeaders Executive, draws on insights from 36 of the country’s leading CIOs and CTOs, painting a picture of both promise and peril for Aotearoa’s digital future.

Source: TUANZ Digital Priorities 2025

A nation at a digital crossroads

While the country boasts strengths in areas such as e-commerce legislation and online banking access, it lags behind global peers in technological infrastructure and adoption, according to the report. 

New Zealand’s ranking in the Portulans Network Readiness Index rose slightly from 23rd to 22nd in 2024, but its overall score remained flat at 66 out of 100. The IMD World Competitiveness Ranking also saw New Zealand drop to 32nd out of 64 countries, underscoring ongoing concerns about productivity and digital competitiveness.

“The report highlights the critical challenges and opportunities that lie ahead. We see a nation with impressive strengths, yet also grappling with infrastructure weaknesses and a pressing need to accelerate digital adoption,” the report’s foreword states. 

“The rise of generative AI, the persistent tech talent gap, and the ever-present threat of cybersecurity risks demand our attention and action”.

Six urgent priorities for 2025

TUANZ’s research identified six top digital priorities for the year ahead:

1. Tackling escalating cybersecurity risks

Cybersecurity remains the top concern for New Zealand’s digital leaders, with the threat landscape becoming increasingly complex and fast-moving. The National Cyber Security Centre reported that 32% of significant incidents in 2024 were linked to suspected state-sponsored actors, up from 28% the previous year.

“I’d be surprised if most CTOs and CIOs didn’t say that cybersecurity sometimes keeps them up at night. The threat landscape is evolving so quickly,” Kieran Byrne, CTO at One New Zealand, notes in the report.

The report calls for a “security by design” approach and stronger government-industry collaboration to counter nation-state threats and protect citizens.

2. Bridging the tech talent gap

A persistent shortage of skilled technology professionals is threatening New Zealand’s digital competitiveness. Many organisations report difficulty filling roles, with talent often lured to Australia by higher salaries.

Roxanne Salton, a digital leader featured in the report, said:

“Technology is a way of getting us. We’re losing a lot of our people to Australia right now, because they’re just getting better pay, more attraction”.

The report recommends prioritising local talent development, promoting STEM education, and building clear career pathways to retain and grow the workforce.

3. Digital inclusion

Digital equity remains a significant challenge, especially for rural, low-income, and diverse communities. The report warns that without targeted action, existing social and economic inequalities could deepen.

Recommendations include expanding broadband infrastructure, making technology more affordable, and investing in digital literacy programs.

4. Accelerating technology adoption

New Zealand’s digital leaders rated the country’s technology adoption at just 6 out of 10, citing risk aversion, skills shortages, and a lack of coordinated government strategy as major barriers.

Kari Jones, another contributor and tech leader, asked:

“[We need] clarity around a strategy and how does digital, data and AI support that?”

The report urges the development of a national digital strategy and incentives for SMEs to adopt new technologies.

5. Harnessing data: smarter use, stronger governance

While data is seen as a crucial asset, many organisations struggle with data silos, governance, and security-especially with the rise of AI-driven tools.

Stuart Wakefield noted: “[It’s critical to] put in place the necessary enablers so data can be safely leveraged by some of these fantastic new tools”.

6. Second year of pervasive Generative AI

Generative AI (Gen AI) is now pervasive, but leaders warn against “over-exuberance” and stress the need for pragmatic, problem-first adoption.

Pat O’Connell cautioned: “...keeping a bit of a lid on the exuberance around AI, I think that’s gonna be a problem because everyone wants to do everything”.

A Call for stronger Government leadership

A recurring theme in the report is frustration with the perceived lack of coordinated government action on digital transformation. Many leaders expressed disappointment at the “invisibility” of government initiatives and called for a clear, long-term digital strategy with bipartisan support.

Read the full TUANZ report here.