Sink the lid
Dr. Andrewrensen, the academic lead of the report, was the AI lecturer at the University of Victoria. Herald“It should be noted that we interpret these statistics as they are based on 166 self-report responses from a subset of New Zealand employers.”
Rensen added: “Even so, they are consistent with what I'm hearing more widely. While some unemployment is happening, the more common trend is the “sinking lid.”
“The economic situation plays a role, but workers report that they are expected to do more to cover less-than-fulfilled vacancy.
“The new AI tools can offset some of this, but only in certain circumstances.
“The government believes it needs to gain stronger support for those affected by AI-driven workforce changes, including retraining initiatives and unemployment benefits, which ensure that people can live with dignity during this transition.”
New career opportunities
AI Forum executive Madeline Newman said on Flipside that 55% of respondents have created new career opportunities and strengthened the importance of high-class skills and career mobility for the current workforce.
AI has allowed staff to focus on more valuable work, Newman said.
Improve efficiency and reduce costs
The survey found that 91% of respondents reported increased efficiency from AI. On the sharp edge of things, 25% reported savings of over $50,000 a year.
While AI adoption was on the rise, Muller said the amount of business spending on new technology has “decreased dramatically.”
Previously, a third of organizations spent over $50,000 on AI setups. Only 7% of the organizations spent that amount this year, with 75% of the organization spending less than $5,000 on AI setups.
Mueller said the fall reflects the “democratization of AI” as companies moved from expensive, bespoke solutions to off-the-shelf tools like ChatGpt, Copilot and Claude.
Ready-made tools have been much more capable over the past year, Muller said, making it cheaper for large organizations to deploy AI and level small business arenas.
What's next?
Muller said it's still early for new technology.
The NZTECH boss is looking at two factors that will increase intake from next year onwards. AI agents adoption (which allows you to perform tasks within parameters and make decisions on its own) and spread of AI from natural early adopters, natural early adopters, and to industries like AI robots, such as trucking and horticulture.
Muller praised the government for the creation of a new, advanced technology institution where AI will be set up as a major focus next year, but also acknowledged the “difficult” transition from Callahan's innovation paid at the end of July.
“Yes, the transition from Callahan is bumpy and fundraising [$231 million, reprioritised from existing budgets] It's modest next to Australian or UK bets, but this is another great opportunity to position New Zealand as a high value, export-intensive technological economy,” Muller said.
The government's recently announced AI strategy has attracted criticism for being too light in its purpose, support, funding and details, but in terms of regulation that there are no new laws or regulations specific to AI, “the government is probably at a balancing point.”
He noted the International Monetary Fund report, which found that EU AI law, occupational regulations and data privacy laws reduce potential productivity benefits by more than 30%.
In New Zealand, “the strategy is to downplay regulations and with hope that the business world is leaning towards it,” Muller said.
“Perhaps there is a little more you can do to help organizations move that further into the economy.
“I think governments will have the opportunity to demonstrate leadership in that field by taking more of themselves in that field and demonstrating their use.
“The government uses around 36% of all information technologies in New Zealand, so moving to AI can make a significant amount of profit.
“And if they sing from the roof about all the great experiences they have, or the challenges they face, and how they went and managed the challenges, it helps to shift the dial for many businessmen.”
He highlighted the potential productivity benefits of the New Zealand government's regulatory light approach to AI, but Muller added:
“We need a parallel work flow, find ways these tools can help us live a better life and be more productive, and on the other side we can find out how we want to show up in our environment, take care of our people, and who can prevent us from using it the wrong way.”
The report was based on Qualtrics Survey, a group of 166 business decision makers. This report was supported by the University of Victoria, AWS, Heft, and Minter Ellison Rudd Watts. Read the full report here.
Chris Keel is an Auckland-based member Herald Business team. He participated Herald In 2018, I am a technology editor and senior business writer.
