New Zealand’s small and medium-sized businesses (SMBs) are rapidly adopting artificial intelligence, with a significant majority comfortable using AI tools. However, research indicates a gap between adoption and effective scaling, with many firms still in the experimentation phase rather than fully integrating AI into core operations. This trend is set against a backdrop of renewed business optimism and increased technology investment for 2026.
Key Takeaways
- 57% of NZ SMBs currently use AI, with 69% comfortable with its application.
- A significant hurdle remains in scaling AI for consistent, transformative results.
- Businesses are planning increased technology investments for 2026, with AI a top priority.
- Lack of formal training and misconceptions about AI complexity are key barriers.
- Focus is shifting from AI trials to enterprise-wide integration and scaling.
The AI Adoption Landscape
Research from Thryv’s 2025 Business Index and Consumer Report reveals that 57% of New Zealand SMBs are utilising AI, including AI-enabled software. Furthermore, a substantial 69% of business owners express comfort or strong comfort in using AI for their operations. Despite this widespread adoption, a notable 56% of businesses report a lack of meaningful AI use that fundamentally alters how customers discover, compare, and choose their services online. This suggests that while AI tools are being experimented with for specific tasks, strategic integration into core workflows and standard practices is less developed.
Barriers to Scaling AI
Rob Hayden, Thryv’s global manager of AI innovation, points to several factors hindering the scaling of AI. Many business owners perceive AI as requiring specialist expertise or advanced technical skills, which slows progress. Additionally, providing AI tools without adequate context, training, or a clear strategy often fails to yield successful outcomes. Misconceptions about AI’s complexity, coupled with limited time for change management, particularly affect smaller organisations. While comfort levels with AI are high, consistent embedding into roles, governance, and daily routines remains a challenge.
The Training Deficit
A critical finding is the limited provision of formal AI training. Only 13% of businesses offer structured AI training, despite most already using AI-enabled tools. This shortfall can lead to uneven tool adoption, variable outputs, and difficulties in determining when human review is necessary. A lack of training also impacts employee confidence and understanding of AI’s role in their work.
Shifting Towards Strategic Integration
Datacom’s Business Outlook 2026 survey indicates a broader trend of increased technology investment among New Zealand businesses, with AI identified as the top technology opportunity for 2026. This signals a move from exploratory phases to a more deliberate focus on integrating and scaling AI into core operations, such as workflow optimisation and customer service. This shift is driven by a renewed business optimism and a desire to stimulate growth, even as efficiency remains a priority.
Practical Applications and Future Outlook
Despite the challenges, New Zealand businesses are already seeing returns from targeted AI applications. Service-based firms are using AI for drafting customer communications and marketing content, while teams handling high email volumes are leveraging AI to prioritise actions. The focus for 2026 is on building a stronger AI culture and redesigning workflows as confidence grows. Experts recommend starting with simple, repetitive administrative tasks and embedding AI into existing tools for maximum impact. The potential for AI to enhance productivity, automate processes, and create new opportunities for customer engagement is significant, provided ethical considerations and data privacy are also addressed.
Sources
- NZ small businesses embrace AI but struggle to scale use, IT Brief New Zealand.
- AI propels 2026 growth plans for small firms in ANZ, ChannelLife Australia.
- Optimism returns as NZ businesses plan bigger tech investments for 2026, NZBusiness Magazine.
- NZ firms lift tech spend as AI shifts from trials to scale, IT Brief New Zealand.
- NZ SMEs ripe for AI potential, Reseller News.
