You are currently viewing New Zealand Businesses Rapidly Adopt AI Amidst Governance and Data Quality Challenges

New Zealand Businesses Rapidly Adopt AI Amidst Governance and Data Quality Challenges

New Zealand companies are increasingly embracing artificial intelligence (AI), with a sharp rise in adoption over the past year, according to Datacom’s latest report, “State of AI Index: AI Attitudes.” The study reveals that AI usage among New Zealand businesses has surged to 66%, up from 48% in 2023. This growth reflects a broader trend of organizations integrating AI tools, with 88% of adopters having implemented AI technologies within the last two years. 

The report highlights a significant shift in attitudes towards AI, with 70% of respondents in 2024 describing AI as “exciting,” up from 47% the previous year. Additionally, 71% of those surveyed believe AI will drive economic benefits and open new revenue opportunities. Datacom’s Managing Director for New Zealand, Justin Gray, noted, “It’s encouraging to see New Zealand businesses recognizing the benefits of AI and gaining confidence in their understanding of AI risks and opportunities.” 

AI is being leveraged across various sectors for automating repetitive tasks (24%), big data analytics (17%), and workflow optimization (15%). However, the report also uncovers significant gaps in AI governance. Only 13% of businesses with AI implementations have established audit assurance and governance frameworks, while just 48% have staff policies for AI usage, and 33% provide awareness training. 

Gray emphasized the need for improved governance, stating, “While AI holds tremendous potential to transform our work and increase productivity, we need to ensure that we use it safely and responsibly.” He also pointed to a “light-touch” regulatory approach recommended by the Office of the Minister of Science, Innovation and Technology, underscoring the need for clear guidelines on AI risks and acceptable usage. 

Data quality remains a critical issue, with 30% of New Zealand companies acknowledging problems ranging from outdated to inconsistent data. Only 9% of companies regard their data as entirely “clean.” As AI’s effectiveness is closely tied to data quality, businesses are urged to address data management, storage, and protection to maximize AI’s potential benefits. 

While New Zealand companies are making strides in AI adoption, the report suggests that more needs to be done to enhance governance frameworks, improve data quality, and develop AI expertise. Aligning business strategies with responsible AI practices will be essential for sustainable growth and innovation in the future.