AI Activator: Govt introduces new opportunity for NZ businesses

Published 20 September 2024 | 2 min read

The integration of Artificial Intelligence (AI) is transforming industries worldwide, and New Zealand is no exception. Globally, AI is already enhancing productivity, unlocking new opportunities, and reshaping how businesses operate.

However, despite our reputation as fast tech adopters, New Zealand businesses are trailing behind countries like Australia and Canada in AI adoption. While other nations rapidly deploy AI-driven innovations, we risk being left behind if we don’t act quickly.

Concerns holding Kiwis back

Many businesses across Aotearoa are understandably cautious when it comes to AI adoption, primarily due to concerns around data privacy and security. This hesitation, though reasonable, might be putting them at a disadvantage.

The fact is, waiting for complete certainty allows competitors—both local and international—to gain a head start, tapping into AI’s potential to refine operations, improve decision-making, and reduce costs.

According to a recent Microsoft report, a staggering 84% of Kiwi workers are already using AI in some capacity at work, surpassing the global average of 75%. Yet, the same study found that 74% of New Zealand business leaders are worried their organisations lack a clear AI strategy, which puts them at risk of falling behind.

Employees are embracing AI at an individual level, but businesses are lagging in providing formal tools, training, and strategies.

AI Activator initiative

Recognising this gap, the New Zealand government has introduced the AI Activator initiative, aimed at encouraging small and medium-sized enterprises (SMEs) to integrate AI into their business models.

Led by Callaghan Innovation, this programme offers Kiwi businesses access to AI experts, technical assistance, and a suite of tools and resources tailored to their unique needs. The AI Activator also provides potential funding and grants to help reduce the cost barrier many businesses face.

Judith Collins, Minister of Science, Innovation, and Technology, emphasised that AI is expected to contribute $76 billion to New Zealand's GDP by 2038. The government’s goal is to help businesses capitalise on this massive opportunity.

As part of the broader strategic approach to AI, they’ve also launched GovGPT, an AI chatbot that streamlines interactions with government agencies, making it easier for businesses to get information and support.

Why every business should act now

Here’s why it’s critical for New Zealand businesses to embrace AI now:

• Competitive advantage: AI enables faster, data-driven decision-making, giving businesses an edge in fast-moving industries.
• Operational efficiency: Automating tasks with AI can free up valuable time for employees to focus on more strategic initiatives.
• Customer experience: Personalised marketing, automated customer service, and better demand forecasting are just a few ways AI can enhance the customer journey.
• Workforce satisfaction: Microsoft’s data shows that employees using AI report higher job satisfaction, as AI tools allow them to concentrate on meaningful work.
• Risks: Early adoption allows businesses to navigate the challenges and risks associated with AI, such as data privacy, with the right resources and safeguards in place.
• Recruitment: With the rising demand for AI skills, businesses that adopt AI will attract talent, particularly with AI-aptitude, essential for future growth.

These statistics demonstrate that AI’s impact goes beyond task efficiency—it is transforming entire operations and creating new business models. Those that delay adoption risk not only inefficiencies but also irrelevance in an increasingly AI-driven marketplace.

The New Zealand government's AI Activator initiative provides a timely and essential resource for businesses to integrate AI and keep up with the global pace of innovation.

It’s clear: the future of work and business in New Zealand will be shaped by AI, and those who embrace it will lead the way.