Generative AI is poised to drive New Zealand into a new era of economic growth, offering the opportunity to address long-standing productivity challenges and establish the nation as a global leader in technology adoption.
A recent Microsoft/Accenture joint report projected an economic boost of NZ$76 billion by 2038, advising that generative AI technology could transform New Zealand's industries, creating a more innovative and efficient economy. But how exactly will this AI revolution unfold, and what sectors will benefit the most?
New Zealand's unique ability to embrace change is a powerful asset. According to Maria Mingallon, Knowledge and Information Manager at Mott MacDonald, "Generative AI has the potential to transform this reality by significantly raising productivity levels. New Zealand has a substantial opportunity to adopt generative AI as New Zealanders are known for being early adopters."
Indeed, 84% of workers in New Zealand are already using generative AI at work, well above the global average of 72%. However, only 19% of them are using AI tools provided by their employers, signalling that businesses are not yet fully capitalising on this workforce's enthusiasm for innovation.
A National Productivity Boost
Generative AI also offers a solution to New Zealand's long-standing productivity problems. The country faces significant resource constraints, with current productivity levels falling behind those of countries like Ireland.
"We need to work about three times as hard as the Irish to produce the same GDP per hour," Mingallon notes.
Generative AI could provide a much needed breakthrough, allowing for the automation of routine tasks, while freeing workers to focus their time and expertise on high-value activities. In fact, it's estimated the average New Zealand worker could free up 275 hours each year through the use of generative AI.
Dr Alvaro Orsi, Data Science Lead at the Institute of Environmental Science and Research (ESR), adds that generative AI is not just about automation—it’s about enhancing decision-making capabilities.
“In the private sector, generative AI will revolutionise product development, customer service, and data analysis, potentially adding billions to the economy within the next 5-10 years,” he says.
The potential for AI-driven innovation, particularly in areas such as environmental management and climate resilience, is enormous.
Tailored AI Solutions for Unique Needs
One of the most interesting developments on the horizon is the shift from general-purpose AI to domain-specific models. Orsi predicts, over the next year, we will see an increase in AI models tailored to New Zealand’s unique needs, particularly in areas such as environmental management.
“These models will integrate local data, Māori knowledge, and specific industry requirements to create more accurate digital twins and AI-powered decision support systems,” he explains.
This approach could enable New Zealand to address pressing environmental challenges while creating new opportunities for economic growth.
Empowering Businesses with AI
Across industries, businesses are already seeing the impact of generative AI.
Dr Mpatisi Moyo, Head of AI at WayBeyond, believes that businesses across industries are already seeing the impact of generative AI. "Tasks around content creation—communications, marketing, scheduling, and code development—will be optimised using GenAI tools to improve productivity and leave the human to do more discerning work—making good decisions," Moyo says.
However, New Zealand's businesses face a hurdle in AI adoption at the enterprise level. As Mingallon pointed out, New Zealand workers are enthusiastic adopters of generative AI, but only a small percentage use AI tools provided by their employers. Companies must accelerate their AI implementation efforts to realise this technology's benefits fully.
The Responsible AI Movement
Another critical area where generative AI will make a difference is responsible AI governance. Manvi Madan, Manager of Data & Insights at the Port of Auckland, sees the potential for AI to enhance productivity while propelling conversations about responsible AI use.
"Generative AI would have productivity gains through AI-assisted processes that enable innovation, safety, and operational excellence," she says, while also noting it will also play a significant role in shaping conversations around data governance and ethics.
AI Agents: The Future of Automation
Looking to the future, experts are predicting that AI agents—autonomous programs capable of executing complex tasks—will be the next big thing.
Julian Seidenberg, Head of Artificial Intelligence at Datch, believes AI agents will transform how we work by automating mundane tasks and even socially interacting with others to adjust to unforeseen circumstances.
“AI agents will definitely be the next big thing,” Seidenberg says. “Creating AI that can act on behalf of a human and independently carry out complex tasks is where we’re heading.”
Mingallon echoes this sentiment, citing the rise of AI agents as a major development in generative AI.
“These agents, powered by generative AI, can make decisions within a workflow of executing tasks, adhering to given guardrails and guidelines,” she explains.
From booking holidays to handling day-to-day tasks like ordering supplies, these agents are set to revolutionise daily life.
AI-Enhanced Tourism
Generative AI is poised to enhance New Zealand’s booming tourism industry. Jo Hilson, Chief Technology Officer at Tourism Holdings, highlights the potential for AI to transform visitor experiences.
"Generative AI can significantly enhance New Zealand's tourism industry by enhancing services across both the private and public sectors to make tourism more accessible, enjoyable, and efficient," Hilson says.
AI-driven personalised travel recommendations and real-time translation services are two ways this technology could change how people experience New Zealand.
A New Era for New Zealand
Generative AI is not just about technology—it’s about rethinking how we work, innovate, and grow. The economic potential is clear, with productivity gains and new business models ready to emerge across industries. As Hilson points out, generative AI can even enhance tourism, offering more personalised, eco-friendly travel experiences and improving the efficiency of visitor services.
However, to realise this potential, New Zealand must focus on key enablers, such as improving its digital maturity, expanding enterprise AI adoption, and ensuring public trust in AI technologies. The ultimate success will depend on how quickly and strategically New Zealand embraces the AI revolution.
In Maria Mingallon's words, "To catch up in the productivity race, attract international investment and talent, and overcome long-standing resource constraints, we need to help organisations in New Zealand adopt generative AI faster than overseas."
The race is on, and for New Zealand, the prize is a future of unprecedented economic prosperity.
Join us at the Generative AI Summit 2024 (New Zealand)
Hear more from Maria Mingallon (Mott MacDonald), Dr Alvaro Orsi (ESR), Dr Mpatisi Moyo (WayBeyond), Manvi Madan (Port of Auckland), Julian Seidenberg (Datch), Jo Hilson (Tourism Holdings), and a host of other experts on 3-5 December at Rydges Auckland. View the agenda here.