51% of respondents are NOT using AI in New Zealand Businesses

51% of respondents are NOT using AI in New Zealand Businesses

We have seen the recent reports from Datacom ‘State of AI Index’ which state that 66% of respondents are using any form of AI in NZ organisations (https://datacom.com/nz/en/solutions/experience/insights/state-of-ai-index-ai-attitudes ). I have to admit when this report first came out, I didn’t believe it then either. Now having conducted further research into it myself as part of my EMBA, the results demonstrate that less than half of businesses are using any form of AI. Globally, while almost 9 in 10 companies are using the technology (https://www.bain.com/insights/ai-survey-four-themes-emerging/ ), this is simply not the case in NZ.

My research found:

  • Cautious AI Adoption: New Zealand boards are taking a cautious approach to AI implementation, contrasting with global trends. Only 19.74% of surveyed board members report "extensive AI use," with the majority focusing on exploring potential applications and awareness building.
  • Cultural & Regulatory Context: New Zealand's unique context, shaped by the Treaty of Waitangi/Te Tiriti o Waitangi and Māori data sovereignty principles, significantly influences AI governance approaches. Transparency, trust, and ethical considerations are paramount.
  • Drivers for Adoption: Boards see AI's potential for improved decision-making, risk management, strategic foresight, and navigating regulatory complexities as key drivers for adoption.
  • Barriers to Adoption: Lack of AI literacy, concerns about data privacy and security, ethical implications, and the cost of implementation are significant barriers.
  • Future Outlook: Despite a cautious approach, AI is anticipated to have a moderate to transformative influence on board governance in New Zealand over the next 3-5 years.

Most Important Ideas & Facts:

  • Limited Current Usage: "The research, based on a survey of 76 New Zealand board members... reveals a cautious approach to AI implementation that contrasts with global trends. The study finds that only 19.74 percent of respondents report “extensive use across multiple areas”..." in comparison to 51.32% who were not using it at all.
  • Focus on Exploration: The mean response regarding AI utilisation fell between "aware but not using" and "exploring potential applications."
  • AI for Decision Support: With those that are using AI, the boards are primarily utilising AI for "decision support and strategic planning, including formulating strategic plans, providing suggestions for regulatory issues, and evaluating different strategic options."
  • Impact on Governance: Survey respondents anticipate AI will significantly impact board governance, particularly in areas like strategic decision-making, speed of decision making, accuracy of risk assessments, and effectiveness of compliance oversight.
  • Positive Outlook: "Participants anticipate AI will increase productivity, reduce manual workloads, and minimise human error in various governance tasks...The potential for AI to transform information processing is noted, with expectations of greater access to real-time data, predictive analytics for informed decisions, and improved stakeholder engagement."
  • Cultural Sensitivity: "In the New Zealand context, boards must also consider the unique cultural and societal aspects when implementing AI in governance. This includes respecting Māori data sovereignty and ensuring algorithms are developed and used in a way that aligns with the country's values."
  • Regulatory Uncertainty: "The lack of specific AI regulation in New Zealand presents a challenge for boards seeking clear guidance on responsible AI implementation."

Overall Conclusion:

The report highlights a cautious but optimistic outlook on AI adoption in New Zealand boardrooms. While acknowledging challenges like regulatory uncertainty and the need for increased AI literacy, it emphasises the significant opportunities for leveraging AI to enhance governance practices while staying true to New Zealand's unique cultural and ethical values. By embracing a context-specific and responsible approach, New Zealand boards can position themselves at the forefront of ethical and impactful AI utilisation in governance.

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Listen to the Notebook LLM Podcast here: https://notebooklm.google.com/notebook/799980e7-a0f3-4e7e-8a6c-8f405e3163e5/audio

We have our 6 monthly survey on the impact of AI on productivity live now - we actively promote to organisations that both do and do not use AI. We partner with Victoria University of Wellington who gather the data and carry out the analytics to assure independence and empirical soundness. Get your thoughts in! https://aiforum.org.nz/ais-impact-on-productivity-in-aotearoa/

Asa Cox

CEO @ ARCANUM AI | SMB Back Office Automation

1 天前

"A little less conversation, a little more action please" ??

Justin Flitter

Founder of NewZealand.AI | Host of the AI-Roadshow.com Masterclass Events | AI Keynote Speaker | Director of Business Mentors NZ.

2 天前

I've borked at almost every report published this year with NZ adoption stats. Even just going by the hands up in the industry conferences I've spoken at this year (>20) I'd strongly lean towards your 50%. And even then, much of that will be some basic ChatGPT. I'm launching a weekly AI skills and tools webinar shortly to help people and businesses overcome the AI Skills shortage roadblock.Demand is strong.

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