New report quantifies revenue, productivity gains from AI adoption
Organisations adopting artificial intelligence are observing bigger revenue and productivity gains compared to non-adopters, according to a new report, which quantified the benefits of AI adoption in New Zealand.
Large firms adopting AI in New Zealand recorded an additional $59.1 million, or 6.8% more revenue, in financial year 2025 than non-adopters of the technology.
Small firms also earned $400,000, or 4.3% revenue in FY25 than their non-AI-adopting counterparts.
The report, released by 2degrees and Deloitte Access Economics, provided evidence-based clarity on how AI is already impacting productivity and revenues at the firm level.
According to the report, businesses at the frontier of AI adoption are also seeing an 11.9% higher firm-level productivity compared to a firm that has not adopted AI.
"A number of factors are likely to be driving this observation," the report read. "While AI itself may be driving efficiencies across the business, adopters may also be more agile and adoptive of broader innovative technologies."
Andrew Fairgray, Chief Business Officer at 2degrees, said the findings indicate the potential of AI in lifting productivity.
"It actually gives us some practical levers that we can use to lift productivity, if we adopt it and we adopt it properly," Fairgray said in a statement. "If you could get even 10% of that $400,000 uplift, I think any business would be delighted. So from a confidence perspective, get in and go and use it."
Falling productivity in New Zealand
The findings come as New Zealand has fallen on key productivity measures, including capital productivity, GDP per capita, and investment spending.
Liza van der Merwe, Deloitte Access Economics Lead Partner at Deloitte New Zealand, said their findings indicate that AI is a significant opportunity to boost productivity gains.
The expert, however, warned that this can only happen if businesses have the right foundations in place.
"Progress depends on building mindset, systems, and skills in tandem. When these come together, businesses are far better placed to turn AI into real productivity gains," van der Merwe said in a statement.
More than eight in 10 (82%) of businesses in New Zealand are using AI at work, according to the report. However, most of these users rely on AI features on tools they already own instead of implementing standalone solutions.
Van der Merwe noted that the biggest gains will be from effectively using current technologies at work.
"That means integrating AI into day-to-day operations, supported by the right infrastructure, processes, and ways of working," she said.
"Ambition alone isn't enough - without the right systems and capability, businesses risk getting stuck in experimentation rather than delivering meaningful results."
Fairgray also pointed out that the opportunity to lift productivity using AI is clear, but does not guarantee it.
"AI itself will not lift productivity. The benefits depend on how effectively organisations adopt it, integrate it, and build the capability to use it well," he said. "This report provides an early indication of what is possible, and where effort needs to be focused next."
The chief business officer stressed that organisations should reinforce how AI is adopted not just by using it, but by being smart in adopting the technology.
"Redesign how you're using it, and transform how you're thinking about the business," he added.
