Off-the-shelf AI the preference for Kiwi firms
According to the latest AI in Action report from the AI Forum, artificial intelligence adoption has accelerated significantly across New Zealand businesses over the past six months, driving measurable productivity gains and transforming workflows.
The study featured responses from 200 respondents across number industry categories and reveals that reveals that 82% of respondents now report some level of AI use in their organization, marking a substantial 15 percentage point increase from the previous survey six months ago.
Among the most other headline findings is that 93% of respondents say AI has made workers more efficient. This reinforces the technology's role in addressing New Zealand's productivity challenges, which have been a persistent concern for the economy.
"An overwhelming 93% of respondents reported that AI has made workers more efficient, while 56% noted a positive impact on financial output," noted Kirsten Patterson, Chief Executive Officer of the Institute of Directors, in the foreword to the report.
Source: AI Forum
Financial benefits becoming more evident
The financial impact of AI implementation continues to strengthen, with 56% of respondents reporting a positive impact on financial output, up from 50% in the previous survey. Additionally, 71% acknowledged savings on operational costs due to AI adoption, a 9 percentage point increase.
These cost savings are being achieved despite relatively modest investment, with fewer businesses reporting setup or ongoing costs exceeding $50,000 compared to the first survey. This suggests AI is becoming more accessible to businesses of all sizes through off-the-shelf solutions.
But the results success that the return on investment still isn’t stacking up for many businesses. At the AI Forum’s launch event for the AI in Action report in Wellington, Daniel Xu, the CEO and co-founder of ElementX AI, suggested that the current use of AI for many firms amounted to using ChatGPT and Copilot, which, while boosting productivity, wasn’t having a significant impact on the bottom line.
The popularity of those off-the-shelf AI tools came through strongly in the report, with 72% of organisations having opted for off-the-shelf AI tools like ChatGPT, Microsoft Copilot, and Google Gemini, according to survey respondents. Only 13% have invested in custom-built solutions.
Source: AI Forum
Transforming work rather than eliminating jobs
Contrary to fears about job displacement, only 7% of respondents report that AI has replaced workers, a figure unchanged from the previous survey. However, 40% report less need to hire new employees due to AI, an 11 percentage point increase that suggests a gradual reshaping of workforce demands.
More encouragingly, 62% say AI is creating new career opportunities in their organizations, a 13 percentage point increase from six months ago. This indicates AI is evolving roles rather than simply eliminating them.
Māori inclusion in AI development
For the first time, the survey included insights on Māori inclusion in AI design and development. Nearly 40% of New Zealand businesses report engaging with Māori during the design of AI systems and including Māori voices in the development process.
Dr. Karaitiana Taiuru, Chair of the AI Forum's Kāhui Māori Atamai Iahiko, noted: "These survey results reflect Aotearoa New Zealand's diverse multicultural country and recognises that our founding constitutional document Te Tiriti o Waitangi has relevance within the AI industry."
While it is positive to see many businesses considering Māori when it comes to developing AI, the fact remains that the majority of businesses don’t consult Māori or consider their needs.
Top use cases remain consistent
The top five business functions leveraging AI remain consistent with the previous survey: Administration, Marketing, Software Development, Project Management, and Design. These areas see rapid productivity gains and immediate return on investment compared to industries requiring more significant upfront investment.
The report also highlights several case studies of successful AI implementation, including Fraxional AI's 40-50% productivity boost in software development and Momentum Consulting's use of AI to free recruiters from administrative tasks.
As AI adoption continues to accelerate across New Zealand, the AI Forum emphasises the importance of responsible implementation and ongoing investment in workforce adaptation and reskilling to ensure AI's benefits are widely shared.
The AI in Action report is undertaken every six months with a view to seeing how the use of AI is evolving and to guage its contribution to boosting productivity.
