As artificial intelligence continues to demonstrate tangible benefits for organisations worldwide, New Zealand businesses are experiencing mixed reactions to its implementation. Recent insights from PwC New Zealand reveal that AI is beginning to deliver concrete advantages to companies willing to embrace this evolving technology. However, significant trust barriers remain a primary obstacle to wider adoption across the country.
The evolving landscape of AI in New Zealand presents both challenges and opportunities for technology leaders, with implications that extend far beyond mere efficiency gains. As technology executives navigate this shifting terrain, understanding the nuanced impact of AI becomes increasingly crucial for sustainable business growth.
According to Scott McLiver, Chief AI Officer and Partner at PwC New Zealand, "Like many new technologies, initial hype has often exceeded the practical implementation, but the broader story now is absolutely one of meaningful progress." This observation cuts through much of the sensationalism that has surrounded AI discussions, highlighting that genuine advancements are indeed occurring.
The statement reflects what many technology leaders are experiencing on the ground: after weathering the storm of unrealistic expectations, AI implementation is now entering a more mature phase where practical applications are yielding measurable results. Generative AI, in particular, is beginning to demonstrate its value for organisations that have moved beyond experimentation to strategic implementation.
This progression mirrors what we've observed with previous technological evolutions—initial excitement gives way to a period of practical adaptation, followed by meaningful integration into business processes. For technology executives, this presents an opportunity to move past proof-of-concept projects toward more substantial transformation initiatives.
One of the most compelling findings from recent research is that seven in ten CEOs report AI has increased their employees' available time at work. This "time dividend" represents a significant advantage in an era where talent shortages and high workloads continue to challenge businesses across New Zealand.
This finding contradicts the popular narrative that AI primarily threatens jobs. Instead, it suggests that when implemented thoughtfully, AI can empower employees by handling routine tasks, allowing them to focus on more strategic, creative, and interpersonal aspects of their roles. For technology leaders, this represents an opportunity to reframe AI discussions away from replacement fears toward enhancement possibilities.
The time dividend manifests in various ways across different business functions:
🤖 For customer service teams, AI-powered chatbots can handle routine inquiries, allowing human agents to focus on complex customer needs
💼 In finance departments, automated data processing reduces time spent on manual reconciliation and reporting
🚀 For product development teams, AI-assisted design tools accelerate prototyping and testing cycles
🖥️ Within IT operations, predictive maintenance and automated troubleshooting reduce firefighting time
However, capturing this time dividend requires more than merely implementing AI tools. It necessitates rethinking workflows, redefining roles, and developing new skills that complement AI capabilities. Technology executives who approach AI implementation with this holistic perspective are more likely to realise sustainable benefits.
Despite these promising developments, PwC's research reveals a concerning trust deficit regarding AI among New Zealand organisations. Only 28% of local CEOs demonstrated a high degree of trust in integrating AI into their business practices—a figure that should give technology leaders pause.
This aligns with findings from KPMG showing that just 37% of New Zealanders believe AI is used safely and ethically. This trust gap represents perhaps the most significant challenge facing technology leaders who recognise AI's potential but struggle to build organisational confidence in these emerging tools.
The reluctance appears to extend to workforce planning as well, with less than a third of CEOs incorporating AI into their workforce and skills strategies. This hesitation suggests many organisations may be implementing AI in isolated pockets rather than as part of a comprehensive transformation approach.
For technology executives, addressing this trust deficit requires a multi-faceted approach:
🔍 Transparency — Clearly communicate how AI systems make decisions and what data they use.
🛡️ Governance — Establish robust frameworks for ethical deployment and maintain appropriate human oversight.
📚 Education — Provide ongoing learning opportunities about AI's capabilities and limitations for all stakeholders.
📈 Value Demonstration — Regularly showcase measurable, business-linked results from AI initiatives.
🤝 Inclusivity — Involve employees early and often in designing AI-augmented workflows to foster buy-in and collaboration.
McLiver emphasises this point, noting that "building trust in AI tools will be the key to unlocking the technology's full potential for long-term business success." Without this foundation of trust, even the most sophisticated AI implementations may fail to deliver sustainable value.
Despite the trust challenges, McLiver's assessment is unequivocal: "There is little doubt that AI will change every layer of business in the coming decade, so getting started is key to remaining competitive and being fit for the future."
This perspective resonates strongly with what we're observing across various industries. Organisations that delay engaging meaningfully with AI risk falling behind competitors who are already building capability, expertise, and competitive advantage through strategic AI deployment.
The sentiment is echoed by HR professionals in New Zealand, with an ELMO Software report finding that 95% believe AI will significantly impact their department this year alone. This underscores the pervasive nature of AI's influence across business functions—it's not just an IT concern but a fundamental business transformation driver.
For technology executives, this creates a delicate balancing act: moving forward decisively with AI initiatives while simultaneously building the trust, capabilities, and governance frameworks needed for sustainable implementation. Those who successfully navigate this tension will position their organisations advantageously for the coming decade of AI-driven change.
Perhaps most thought-provoking is McLiver's observation that "The potential of AI is immense and likely beyond what most of us can even envision. We are entering a period where human intelligence will likely be exceeded by advanced AI, but its impact for businesses will largely depend on how we act now."
This statement acknowledges the profound transformative potential of AI while emphasising that organisations retain agency in how this transformation unfolds. Rather than being passive recipients of technological change, businesses can shape how AI impacts their operations, culture, and competitive positioning through deliberate action today.
For technology leaders, this means developing not just technical strategies for AI but comprehensive approaches that consider:
For technology executives in New Zealand, these insights suggest a balanced approach to AI that acknowledges both its transformative potential and the legitimate concerns surrounding its implementation.
Rather than viewing the trust deficit as merely an obstacle to overcome through persuasion, leaders can see it as a valuable signal that thoughtful governance and transparent deployment are essential components of successful AI strategy. The resistance provides an opportunity to develop more robust and ethically sound approaches that will ultimately yield more sustainable results.
Similarly, the emerging evidence of AI's time dividend offers a compelling narrative that can help shift organisational perspectives away from fear toward opportunity. By focusing on how AI can enhance human capabilities rather than replace them, technology leaders can build broader support for digital transformation initiatives.
The imperative to act now remains clear, but "acting" doesn't necessarily mean rushing to deploy AI everywhere. It means developing the organisational capabilities, ethical frameworks, and strategic vision needed to leverage AI effectively as its capabilities continue to evolve.
For technology leaders looking to advance their organisation's AI journey while addressing trust and implementation challenges, several practical steps emerge from these insights:
The emerging picture of AI in New Zealand business presents both tremendous opportunity and significant responsibility for technology leaders. The technology is clearly demonstrating value, particularly in creating time dividends that allow employees to focus on higher-value work. However, substantial trust barriers remain that must be addressed through transparent, ethical, and value-focused implementation.
As McLiver aptly notes, we are entering an era where the capabilities of AI may exceed what we can currently envision. This reality makes it all the more important that technology leaders approach AI with a balanced perspective that acknowledges both its transformative potential and the legitimate concerns surrounding its deployment.
By building trust while demonstrating value, technology executives can help their organisations navigate this complex landscape successfully. Those who approach AI as not merely a technical implementation but a holistic business transformation opportunity will be best positioned to capture its benefits while mitigating its risks.
The journey toward AI-enabled business transformation is not a sprint but a marathon—one that requires sustainable pace, strategic vision, and unwavering commitment to responsible deployment. For New Zealand technology leaders, the time to develop these capabilities is now, even as the full potential of AI continues to unfold before us.
