Skip to content
AI New Zealand
Home AI Playbook AI OS Executive AI Briefing AI Lunch & Learn Microsoft Copilot course AI Roadshow Premium membership Toolkits Webinars Insights AI Academy Contact us
15 December 2025 · Insights

Government Strategy & Policy Reports

Justin Flitter Founder, AI New Zealand 15 December 2025 9 min read

We analysed the analysis, reviewed the research, scoured over the surveys to create a comprehensive round-up of the AI adoption reports published in 2025 about New Zealand. All up Perplexity references 145 sources from this deep-dive, all listed below.

The picture they paint is genuinely exciting. Aotearoa's businesses are embracing AI at a cracking pace, though there's still work to be done on trust and skills.

AI adoption in New Zealand has reached a tipping point in 2025. We've moved from early experimentation to mainstream integration, with 82-87% of businesses now using AI in some capacity.

// This is an extremely broad statement. LLM's integrated into your CRM or using ChatGPT as a Google Search replacement should not be classed as integration.

The good news: Productivity gains are real and measurable, 93% of businesses (surveyed) report efficiency improvements, and many are seeing substantial cost savings. The technology is becoming more accessible, with 70% keeping setup costs under $5,000.

// In one report only 40% of businesses reported an measurable impact at all from pilot projects. And their lies a hint. Those businesses really noticing the impact are moving past experimentation, not just embedding AI into daily workflows, but re-engineering workflows - occasionally eliminating tasks altogether.

The challenges: Trust remains fragile (only 34% of Kiwis trust AI), there's a significant SME adoption gap (68% have no plans to invest), and a critical skills shortage persists. Only 12% of organisations have successfully scaled AI across their entire operations.

The momentum is undeniable, and 2025 marks the year NZ got serious about AI adoption. For businesses willing to invest with confidence, the productivity gains are there for the taking.

We're here to help with that...

New Zealand's AI Strategy: Investing with Confidence (July 2025)

Published by the Ministry of Business, Innovation and Employment (MBIE), this is New Zealand's first-ever national AI strategy, making us the last OECD country to release one. beehive

Key Findings:

  • 67% of large NZ businesses now use some form of AI, up dramatically from 48% in 2023
  • However, 68% of SMEs have no plans to evaluate or invest in AI, a significant adoption gap
  • Generative AI could add $76 billion to the economy by 2038 (over 15% of GDP)
  • Only 34% of workers can clearly explain what AI is, despite 97% having heard of it
  • 43% of non-users cite lack of expertise as their main barrier

Strategic Focus: The Government deliberately emphasises AI adoption over foundational development, positioning NZ as "smart adopters" who tailor global AI tools to local challenges in agriculture, healthcare, and education.

Budget Allocations:

  • $213 million for tuition and training subsidies
  • $64 million for STEM and priority skills
  • $611 million in AI-related R&D projects approved since 2019

2025 Cross-Agency AI Survey (August 2025)

Released by the Government Chief Digital Officer, this survey tracked AI use across the public sector.

Key Findings:

  • 272 AI use cases across 70 government agencies, more than doubling from 108 cases in 2024
  • 55 AI cases now fully operational, up from just 15 in 2024
  • Increased productivity and efficiency reported across public service
  • Technological barriers remain a challenge

Business & Industry Reports

AI in Action: New Zealand's Third AI Productivity Report (August 2025)

The AI Forum NZ, in partnership with Callaghan Innovation and Victoria University of Wellington, released their third bi-annual report. aiforum

Key Findings:

  • 91% of businesses report efficiency improvements from AI
  • 77% of organisations report operational cost savings
  • Over 25% achieved annual cost savings exceeding $50,000
  • 70% have AI setup costs under $5,000, making adoption accessible
  • 55% of businesses say AI has created new career opportunities
  • 14% report job losses, highlighting the need for upskilling
  • 93% report increased worker efficiency, far exceeding global averages

Previous Reports in the Series:

  • First report (2024): 67% adoption, almost all saw improved worker efficiency
  • Second report (March 2025): 15% surge in adoption over six months, only 7% job displacement

Datacom's State of AI Index 2025 (July 2025)

This major survey of 200 senior leaders from large organisations and public sector bodies shows rapid acceleration.

Key Findings:

  • 87% of organisations now use some form of AI, up from 66% in 2024 and 48% in 2023
  • 88% report positive impact on operations datacom
  • 28% use advanced AI
  • Only 12% have scaled AI across the entire organisation
  • 46% are still in pilot phase, 33% at department level

Maturity Gap: While adoption is high, scaling remains a challenge, most firms are still exploring rather than fully embedding AI.

Kinetics: AI-Driven Productivity Gains in New Zealand (June 2025)

This detailed analysis examined AI's impact across diverse NZ industries. kinetics

Key Statistics:

  • 82% of NZ organisations report using AI in operations
  • 93% say AI made workers more efficient
  • 71% achieved operational cost savings
  • Only 7% report AI directly replacing workers
  • 29% set productivity as top priority for 2025
  • 46% of firms plan to boost AI investments, 41% focus on automation

Sector Highlights:

  • Agriculture: AI expected to generate $2.1 billion by 2035 through agritech applications
  • Finance: Fraud detection saving considerable analyst hours
  • Manufacturing: Predictive maintenance and quality control

Microsoft & Mandala: Unlocking New Zealand's $3.4 Billion AI Advantage (June 2025)

This partnership research unpacked how NZ can capitalise on AI opportunities.

Key Projections:

  • AI applications and datacentre infrastructure could become a $3.4 billion industry by 2035
  • Generative AI adoption could increase GDP per capita by 14%, helping NZ leapfrog Finland and Estonia
  • A public sector pilot of Microsoft Copilot showed 1781% ROI, saving workers 13 hours monthly
  • Moderate automation scenario: $76 billion annually by 2038

Strategic Recommendations: Focus on AI applications (healthtech, agritech, fintech) and infrastructure rather than competing on foundational models.

Trust & Consumer Sentiment Reports

KPMG Trust in AI Survey Report 2025 (University of Melbourne & KPMG)

This global study surveyed 48,000+ people across 47 countries, including New Zealand.

New Zealand Findings:

  • Only 34% of Kiwis trust AI systems kpmg
  • 48% accept or approve of AI
  • 81% believe AI regulation is needed
  • 85% more willing to trust AI when there's clear accountability
  • 43% report increased efficiency from AI at work
  • 31% report increased revenue-generating activity

Trust Gap: Many NZ workers use AI regularly but don't trust it, creating complex organisational risks.

One NZ AI Trust Report 2025 (May 2025)

Survey of 1,000 New Zealanders examining trust and adoption.

Key Findings:

  • 77% have knowingly used AI-powered services in the past year
  • Nearly half don't trust large companies to use AI ethically. one
  • 62% would stop using a company if concerned about its AI use
  • 87% believe strong data privacy protections are important or essential

Top Concerns:

  • 67% concerned about misuse of personal data
  • 65% worried about job losses
  • 62% concerned about unfair decision-making
  • 48% anxious about AI energy consumption and greenwashing

Opportunities Seen:

  • 43% see value in AI for boosting productivity
  • 42% for cybersecurity
  • 41% for innovation

Sector Trust Challenges: Government, banking, and healthcare face greater challenges building public confidence in AI use.

Ipsos AI Monitor 2025 (October 2025)

This 31-country study of 24,000+ people included New Zealand. ipsos

Key Findings:

  • 73% of New Zealanders report good understanding of AI, up from 69% in 2024 and 62% in 2023
  • 66% say AI makes them nervous - second highest globally after Australia at 67%
  • Understanding is rising but so is nervousness

EY AI Sentiment Report for New Zealand and Australia (January 2025)

This report explored perceptions across both countries. ey

Key Insights:

  • Trust deficit and blurring of reality are major concerns
  • Baby Boomers and Gen X more sceptical of AI than younger generations
  • Sectors like education and healthcare set to be revolutionised, but trust remains crucial

Sector-Specific Reports

World Internet Project New Zealand (WIP-NZ 2025) (Published by AUT)

This longitudinal survey examined internet connectivity, AI adoption, and digital attitudes.

Focus Areas:

  • Quality and accessibility of internet connections in NZ
  • Adoption and trust in AI systems
  • New Zealanders' attitudes towards digital technologies
  • Daily social media use dropped from 83% (2023) to 72% (2025) istart

AI in Primary Care Survey – Round Two (February 2025)

Joint survey by the AI in Primary Care group examining healthcare adoption.

Key Findings:

  • 68% of primary care respondents now use AI tools, up from 52% in Round One. gpnz
  • Daily AI use rose from 25% to 40%
  • Growing contribution of AI in reducing administrative burden
  • Barriers remain for widespread adoption

InternetNZ: NZ Consumers and Businesses Research (August 2025)

Survey examining online presence and AI integration. internetnz

Business Findings:

  • 68% of businesses are using AI
  • AI integration focused on time-saving tools, customer support automation, and marketing personalisation
  • Businesses notice consumers demanding faster, more personalised interactions and increased self-service tools

Professional Services Firm Reports

PwC CEO Survey 2025 (March 2025)

Survey of New Zealand CEOs examining business sentiment and AI adoption.

Key Findings:

  • 70% of NZ CEOs report AI enhances employee work efficiency, significantly higher than Australia (42%), Asia Pacific (58%), and globally (56%)
  • 55% report AI increases efficiency in their own work time pwc
  • 47% believe AI will boost company profitability over next 12 months
  • Only 13% consider AI "extremely important" for long-term success, suggesting cautious approach
  • 28% express high degree of trust in integrating AI into business practices

Strategic Priorities: CEOs prioritising integration of AI into technology platforms, business processes, and workflows over next three years.

PwC Global AI Jobs Barometer 2025 – New Zealand Analysis

Examined how AI is changing job skills and employment.

Key Finding:

  • Skills sought by employers for AI-exposed jobs are changing 66% faster than for other jobs, up from 25% last year pwc
  • AI associated with gentler growth patterns

PwC Insurance Banana Skins 2025 (November 2025)

Survey of 21 insurance companies in New Zealand.

Key Finding:

  • AI jumped from #10 risk (2023) to #1 risk (2025) for NZ insurers pwc
  • Cybercrime ranked #2 locally (#1 globally)
  • Climate change ranked #3 locally

Recommendation: Focus on upskilling people to better understand AI and develop governance frameworks.

KPMG CEO Outlook 2025 (November 2025)

Survey of global and NZ CEOs

New Zealand Findings:

  • 90% of NZ CEOs feel their leadership has clear view on how AI will disrupt business models - higher than global average kpmg
  • Clear agreement that upskilling and regulatory progress are key to success

Deloitte New Zealand Impact Report 2025 (November 2025)

Overview of Deloitte's AI work and broader business impact

Focus: Building trusted intelligent government, AI governance, and business transformation through AI.

Academic & Research Reports

Digital Revolution in Business Study (May 2025)

Research examining AI adoption's impact on business performance and innovation in NZ.

Key Findings:

  • Digital infrastructure has strong positive association with business performance and innovation capabilities. brdr
  • AI linked to driving business through automation, predictive analytics, and strategic decision-making
  • Government digital policies imperative in creating favourable environment for digital transformation

Smart Solutions for Tough Times: AI in NZ's Food & Beverage Industry (September 2025)

Published by AUT's Hospitality Insights, this study explored AI opportunities and challenges in F&B sector.

Focus Areas:

  • Inventory management through predictive analytics
  • Operational efficiency in food production
  • Customer service enhancement
  • Revenue maximisation

Geospatial Technologies in NZ's Plantation Forestry Sector (November 2025)

Third survey following 2013 and 2018 studies.

Key Findings:

Continue reading

More from AI New Zealand.

AI Operating System

Everyone is buying the skills layer. Almost nobody is buying the integration layer.

Read article →

2026 AI Roadshow Notes

AI is no longer just about content generation. It is becoming operational infrastructure.

Read article →

Insights

What comes after LLMs now has a New Zealand face on it.

Read article →

Power up your potential with practical AI skills.

Contact us to discuss how Artificial Intelligence could boost your business.

Book an AI Chat Explore the AI Operating System