Datacom has released its 2026 State of AI Index, offering a detailed view of artificial intelligence adoption across New Zealand organisations. The research shows that 91 percent of organisations now use some form of AI.
That figure has increased from 87 percent in 2025 and 66 percent in 2024. As a result, AI has moved rapidly from an emerging technology into everyday business activity.
However, adoption does not automatically lead to business transformation. Datacom found that 81 percent of organisations remain in the exploratory or implementation stages. Only 15 percent have reached the point of scaling AI across their organisations.
The findings reveal a clear difference between using AI tools and changing business operations around AI. Many organisations now use AI assistants and productivity applications. Yet far fewer have integrated AI into their core operations.
The share of organisations using AI to transform core operations has fallen from 8 percent to 4 percent. Therefore, the next phase of growth may depend more on business strategy than technology access.
Businesses following AI trends and insights should therefore look beyond adoption figures. The more important question is how effectively organisations use AI to solve specific business problems.
Leadership Has Become a Major Priority
Leadership and accountability remain important challenges. Only 22 percent of organisations have a dedicated AI leadership role. Another 26 percent have assigned AI responsibility to an existing executive. Meanwhile, 19 percent share responsibility across several executives.
Internal capability also remains the biggest barrier to scaling AI. Twenty percent of respondents identified a lack of internal skills as their main challenge. Employee concerns about job displacement or resistance followed at 18 percent. Implementation costs ranked next at 17 percent.
Consequently, organisations need more than new AI software. They also need skilled employees, clear ownership and effective change management.
AI Investment Continues to Increase
New Zealand businesses are continuing to increase their AI spending. According to the research, 79 percent of organisations increased their AI investment during the previous year. In addition, 73 percent planned to increase investment during the following year.
Businesses are also reporting measurable returns. Thirty three percent said their AI returns exceeded costs. Another 30 percent said the benefits and costs were broadly balanced.
Time savings and productivity gains produced the most commonly reported benefits at 59 percent. Improved quality and accuracy followed at 41 percent. Operational efficiency accounted for 34 percent.
Therefore, organisations are increasingly connecting AI spending with measurable business outcomes.
Generative AI Is Becoming Part of Everyday Work
Generative AI developments are playing an important role in adoption. General purpose AI assistants such as ChatGPT, Gemini and Claude were used by 68 percent of organisations.
AI enhanced productivity tools followed at 66 percent. More advanced applications remain less common. AI embedded within business platforms reached 31 percent, while 26 percent reported using custom built or in house AI solutions.
Agentic or autonomous AI systems were reported by 13 percent of organisations.
These figures suggest that businesses currently gain much of their AI value from accessible productivity tools. At the same time, more complex implementations continue to develop.
AI Skills Are Becoming More Important
As adoption grows, organisations need employees who can work effectively with AI. Datacom found that 66 percent of organisations provided AI skills training during the previous year.
Furthermore, 59 percent either employ or plan to employ dedicated AI talent. This figure represents a significant increase from the previous year.
These developments highlight the importance of workforce capability. Machine learning advancements and generative technologies can create new opportunities, but businesses still need people who understand how to apply them.
Therefore, employee training should form part of any long term AI strategy.
AI Strategy and Governance Continue to Develop
The research found that 62 percent of businesses have some form of AI strategy. However, only 16 percent have a clearly defined standalone AI strategy.
Another 23 percent have formally embedded AI into a broader business, digital or technology strategy. A further 23 percent reported that their strategy remains high level or has not yet been fully operationalised.
Governance is also becoming more established. AI policies, staff training, ethics guidance and risk frameworks have all increased compared with the previous year.
This progress matters because automation and future tech can introduce new risks. Strong governance can help organisations manage data, security, compliance and responsible AI use.
Businesses Want Greater Regulatory Clarity
The research also highlights growing interest in New Zealand’s AI environment. Fifty five percent of business leaders said they were somewhat or very confident that New Zealand was prepared to manage AI risks and opportunities.
At the same time, 64 percent supported specific AI legislation and controls. Seventy four percent supported a dedicated national AI framework and coordinating body.
These findings show that businesses are looking for greater clarity as AI becomes more important to daily operations.
Clear expectations around governance and accountability can help organisations make technology decisions with greater confidence.
Preparing for the Next Stage of AI Growth
The 2026 State of AI Index shows that New Zealand has reached a significant stage in AI adoption. However, widespread use does not necessarily mean widespread transformation.
Future of AI research will likely continue to examine how organisations move from experimentation toward deeper integration. For New Zealand businesses, the challenge now involves connecting AI with business objectives, workforce capabilities and operating models.
Moreover, machine learning advancements and generative AI developments will continue expanding the range of potential applications. Organisations will need to determine where these technologies can create measurable value.
What the Findings Mean for New Zealand Businesses
The research provides an important snapshot of a market where AI has become mainstream. Yet only a small proportion of organisations have scaled AI across the enterprise.
Businesses can respond by focusing on clear use cases and measurable outcomes. They can also strengthen leadership ownership, employee training and governance.
Most importantly, companies should treat AI as a business capability rather than simply another software purchase. This approach can help organisations connect technology investment with productivity, quality and operational improvements.
Actionable Insights for AI Leaders
The latest findings suggest that businesses should focus on the quality of AI adoption as much as its scale. Leaders can begin by identifying specific business problems where AI can deliver measurable improvements.
Next, organisations can assign clear ownership and build employee capabilities. They should also establish governance before expanding AI into more sensitive business processes.
In addition, leaders can track productivity, quality, cost and customer outcomes. These measures can reveal whether an AI initiative is delivering genuine value.
Ultimately, the next stage of AI growth will depend on how effectively businesses connect technology with people, processes and strategy. Datacom’s research shows that New Zealand has already embraced AI. The next challenge is turning that adoption into lasting business transformation.
For practical perspectives on AI trends and insights, emerging technologies and business transformation, reach out to AI Tech Info Pro for informed technology analysis.
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