AI adoption surges but workforce hesitation remains

Workforce challenges remain a barrier in AI uptake

AI adoption surges but workforce hesitation remains

Adoption of artificial intelligence in New Zealand workplaces soars, but staff resistance remains a key challenge in implementation, according to a new report.

Datacom's 2025 State of AI Index revealed an upward trend in New Zealand's AI adoption.

In 2025, 87% of organisations said they are now using some form of AI within their organisations, up significantly from the 66% last year and 48% in 2023.

Among AI-adopting companies, 28% said they are using advanced AI in their operations. Nearly half (48%) said they use business-specific AI, while 87% said they use basic tools.

"The momentum is undeniable," said Justin Gray, managing director of Datacom New Zealand, in the report.

"This rapid uptake reflects a growing recognition of AI's potential to reshape operations, enhance decision-making, and unlock new value."

AI uses and benefits

According to the report, more than half of the respondents are using AI for basic automation (68%), data analytics (54%), and streamlining workflows (51%).

And so far, the reviews have been great. Nearly nine in 10 (88%) of AI users said the technology has a positive impact on their business operations.

Its biggest positive impact is on productivity gains (89%), enhanced decision-making (42%), as well as cost reduction (30%).

Nearly a third of the respondents also said AI's impact is on staff enablement or retention (29%).

Workforce challenges remain

Amid the widespread use of AI at work, 31% of the respondents said staff resistance is a key challenge and barrier to AI adoption.

Another 25% said lack of policies or guardrails, while 23% said it's because of a lack of internal support.

The lack of internal capability or skills is also the top barrier (32%) cited by businesses as the primary barrier to scaling AI in their organisation.

Another 11% cited anti-AI sentiment or fear of job displacement.

"This signals a clear call to action: we must invest in skills, strengthen governance, and foster collaboration between industry and government to ensure AI adoption is both responsible and impactful," Gray said.

The New Zealand government has introduced a National AI Strategy to encourage the uptake of businesses in the technology. It has also unveiled new guidelines that seek to ensure the safe and responsible use of AI in the public sector.

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