Leaders signal a return to spending, with AI moving from trials to core systems
New Zealand business leaders are entering 2026 with renewed optimism, with 65% expecting economic conditions to improve over the next 12 months, according to Datacom’s third annual Business Outlook Survey.
The survey of 200 senior leaders from organisations with more than 100 employees found 82% plan to increase technology investment this year, up from 68% in 2024.
Technology investment on the rise
Datacom New Zealand managing director Peter Nelson told Scoop Media the results reflect growing confidence across the business community.
“After a period of uncertainty, leaders are signalling that they’re ready to invest and innovate,” Nelson said. “This renewed optimism is a positive sign for the economy and for the role technology will play in driving growth.”
Artificial intelligence adoption topped the list of technology opportunities for 2026, cited by 51% of respondents. Data optimisation followed at 40%, with automation at 30%.
Significantly, 31% of those prioritising AI said their focus is on integrating and scaling the technology into core operations, marking a shift from pilot projects to enterprise-wide adoption.
“Organisations are starting to be more strategic about their deployment of AI,” Datacom director of AI Louise Compagnone told Scoop Media. “It’s encouraging to see the conversation shift from ‘if businesses should adopt AI’ to ‘how they can effectively scale it’.”
Challenges remain
Despite the optimism, economic uncertainty remains the top concern for 65% of business leaders, followed by cybersecurity at 24% and workforce concerns at 19%, a report from The NZ Herald highlighted.
Budget constraints and skilled workforce shortages emerged as the biggest barriers to technology adoption, each cited by about 30% of respondents.
The brain drain continues to weigh heavily, with 42% of leaders expressing concern. Engineering skills were identified as particularly at risk.
Nelson said the skills shortage presents a significant challenge.
“I can see there will be a huge shortage of engineering talent that is either AI-native or very AI-savvy,” he told The NZ Herald. “We’ve got to make sure we have access to good skills from overseas, as well as developing our own talent here.”
Nearly half of businesses reported experiencing a cybersecurity attack in the past 12 months, a 13% increase from 2024.
Government performance
The survey found 43% of business leaders believe the Government has done a good job supporting local businesses, while 71% believe it needs more time to deliver on its promises.
Boosting the economy ranked as the top priority for government focus at 82%, followed by improving public services at 43%.
The survey was conducted in December 2025 by Curia Market Research.
