Source: AI Forum
The AI Forum is a non-profit organization that's dedicated to advancing New Zealand's Artificial Intelligence ecosystem. They've recently released their inaugural AI Business Productivity Report, AI in Action. This survey of 232 New Zealand businesses sheds light on how AI is shaping kiwi organisations, offering valuable insights into AI adoption and its impact on efficiency, cost savings, and workforce dynamics.
In this blog post I'll explore five key findings from the report, plus share my take on what it all means and why it matters for business leaders navigating this transformation.
Author: Dr. Sarah Mitchell, Founder & CEO Anadyne IQ
1. Solid AI Adoption, Led by Generative AI
Finding:
67% of surveyed organizations reported using AI, with generative AI being the most common type used (55% of participants who use AI).
Why It Matters:
With two thirds of surveyed businesses using AI in some capacity, this signals a fundamental shift in how New Zealand businesses are operating. It's difficult to unpick the full meaning of this finding, as 'using AI' could mean different things to different organisations. From one or two staff members interacting with conversational AI like ChatGPT or Copilot, through to broad adoption of bespoke or enterprise AI tooling. Either way, the shift towards more widespread AI adoption indicates what I and other AI nerds have been talking about for some time now: it is no longer a question of if AI will impact your sector, but when and how. I'd wager based on the numbers from this report, and the stats from other recent surveys, that chances are AI is already impacting your industry.
So, this means that as a business owner, leader, or decision maker, you're at an opportune moment in time. If you've started implementing AI then fantastic, you're on your way. Keep going and focus on maximising the benefits AI can offer. But if you're sitting in the one third group who haven't yet started to explore AI’s potential, you're at risk of blinking and suddenly finding yourself behind your competitors, missing out on opportunities to stay ahead.
It's worth noting that forging ahead with AI does require strategic thought and pragmatism. AI adoption certainly isn’t one-size-fits-all, and it is not risk-free either. I recommend starting with low-risk, high-reward areas (think back office rather than customer facing solutions) and expand gradually based on measurable results. If you focus on outcomes, rather than shiny new tools, you'll be better positioned to deliver a return on your AI investments.
Next Step:
Evaluate where AI could provide quick wins in your business—such as automating routine tasks or improving data analytics for decision-making.
2. Financial Benefits are Emerging, But Not Universal
Finding:
50% of participants reported a positive financial impact from AI adoption, while 62% experienced cost savings
Why It Matters:
So, half of the respondents that are using AI have seen financial benefits, while nearly two thirds have saved costs. This tells me the financial benefits of AI are absolutely there (as I expected), but careful implementation and adoption strategies are critical for success.
If you're not yet seeing a return on investment (ROI) on your AI, it could be one of three main things: 1) you're focusing on the wrong use cases and tools, or 2) it's too early to realise returns, or 3) what you've done is good, but your people aren't using it.
Leaders should apply AI to solve key business challenges that have a clear path to ROI and avoid chasing trends (aka the shiny objects). High potential areas include those that can reduce inefficiencies or add value, such as process automation, supply chain management, and predictive analytics. Additionally, there's often a lag between AI investment and returns, so patience and continuous optimization are also important factors for AI ROI. And with regard to the third point, if you don't get people using the AI tools you've invested in, you won't realise any returns. Make sure they have the support and training to leverage the AI to its full potential.
Next Step:
Before jumping into AI, identify areas where the technology can provide the greatest financial returns for your business. Define your objectives, establish metrics, and monitor your progress to track ROI over time.
Tip: Don't chase the shiny objects (aka the AI trends), focus on desired outcomes instead.
3. AI is Boosting Worker Efficiency
Finding:
96% of respondents indicated that AI has made workers more efficient
Why It Matters:
This is a really exciting metric as it demonstrates AI's potential to significantly improve efficiency across various business functions. This reflects my own personal experience: I use AI in many ways to boost my daily efficiency and productivity levels to well beyond what I could ever achieve on my own.
While the near universal reported efficiency gains are impressive, the report shows they don't always translate directly to financial gains (remember, only half of respondents using AI are seeing financial benefits). So, if you're seeing efficiency gains but not the financial returns, it's worth assessing how you're utilising the time saved through AI automation. Make sure you have a plan for redirecting freed-up capacity towards high-value activities that drive business value and growth.
Next Step:
Identify time-consuming tasks for AI automation, but (here's the key!) also plan how to strategically use the time saved.
4. AI is Creating New Career Opportunities
Finding:
Only 8% reported that AI had replaced employees, while 49% said AI created new career opportunities within their organisation
Why It Matters:
This challenges the narrative of widespread job displacement due to AI, at least in the short term. While immediate job losses are low, the 'new career opportunities' statistic shows that AI is indeed reshaping the nature of work.
We can expect to see a shift towards businesses hiring differently, perhaps even hiring less. Furthermore, we'll see individual roles evolving towards higher value work as AI begins to take on the more mundane repetitive tasks.
For business leaders, preparing your workforce for this environment of change is crucial. By focusing on AI literacy and upskilling, you can position your team to leverage AI effectively and take advantage of evolving role requirements.
Next Step:
Consider offering training and reskilling opportunities to help your team leverage AI tools effectively, ensuring they’re empowered to work more efficiently and creatively.
Tip: Make sure you're offering training and reskilling opportunities to help your team leverage AI.
5. AI Costs Vary, But Often Correlate with Returns
Finding:
52% of participants reported setup costs, while 62% reported ongoing costs for AI implementation. There is a strong correlation between the amount spent on AI and the financial benefits gained.
Why It Matters:
Understanding the financial implications of AI adoption is crucial for budgeting and planning. The data is showing us there's a correlation between costs and financial returns. Essentially, the more you spend the greater your financial benefits. This suggests that many businesses are investing strategically in AI solutions that will best suit them.
However, as we touched on earlier, not all investments will pay off immediately and costs can vary significantly depending on the complexity and scale of the AI implementation. It's really important for leaders to adopt careful planning and a phased implementation can help manage these costs while still maximising the benefits of AI.
Next Step:
Prioritise AI projects with a clear path to ROI. Start with smaller, targeted AI projects to prove value before scaling up to more complex implementations.
6. Conclusion: Where Should You Focus?
The AI Forum Business Productivity Report provides a clear message: AI is here to stay, and its impact is being felt across industries with clear benefits in efficiency and potential for financial gains. However, it also highlights the need for strategic implementation, ongoing training, and careful consideration of how AI will shape the future of work. As AI continues to evolve, staying informed and adaptable will be key to leveraging its benefits while navigating its challenges.
Next Step:
Start small but think big. AI can unlock significant potential for businesses of all sizes, but success lies in thoughtful, well-planned implementation, training, and adoption support.
Here at Anadyne IQ, we're all about making AI less complicated. Whether you're just starting your AI journey or looking to optimize your existing AI strategies, we're here to help. Intrigued by what AI could do for you or your business? Let's have a chat. Reach out for a no-pressure discovery call to learn more about our practical AI workshops and our AI consulting services.
Note: The author, Dr. Sarah Mitchell, is a member of the AI Forum and the AI Forum's AI Governance Working Group. Sarah did not participate in the creation or formal analysis of this survey and all views expressed in this blog post are her own.
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