New Zealand’s small and medium-sized businesses are rapidly adopting artificial intelligence, but many still lack the skills and processes needed to achieve consistent results, new research from small business software provider Thryv reveals.
2025 data Thryv Business Index and Consumer Reports A New Zealand study found that 57% of small businesses use AI, including AI-enabled software. We also found that 69% of respondents feel comfortable or very comfortable using AI in business operations. However, other indicators point to gaps in implementation. 56% of businesses still lack meaningful use of AI to reshape how customers discover, compare, and choose businesses online.
This finding suggests that experimentation is common, but strategic integration is less developed. Many companies seem to be experimenting with tools for specific tasks rather than changing their workflows or making AI a part of standard operations.
Barriers to expansion
Rob Hayden, global manager of AI innovation at Thryv, said local companies are at a tipping point.
“Many executives believe that AI requires specialized knowledge and advanced technical skills, which continues to slow progress and limit experimentation,” Hayden said. “At the same time, providing AI tools to teams without context, training, and strategy is unlikely to lead to successful outcomes.”
Misconceptions about complexity remain a real barrier, especially for smaller organizations with limited time for change management. The research also suggests that while many teams feel comfortable with AI, fewer are consistently embedding it into their roles, governance, and day-to-day operations.
Hayden said early use cases should focus on day-to-day administrative tasks rather than large-scale transformation.
“AI doesn’t have to be complex to be valuable,” he says. “The most effective starting point is to identify one task that is repetitive and admin-intensive and allow AI to remove it from the work week.”
lack of training
A key finding was that formal training provision was limited. Even though most companies reportedly already use AI-enabled tools, only 13% offer systematic AI training.
This discrepancy is important for risk management and consistency. Without shared guidance, staff can deploy tools unevenly, see fluctuating output, and struggle to determine when human review is needed. Lack of training can also undermine the trust of employees who want clearer boundaries and expectations about how AI fits into their jobs.
Hayden said that once teams understand how AI will impact their roles, they can quickly change attitudes with practical guidance.
“People need guidance and reassurance before they can use AI with confidence,” he said. “When people understand that AI will enhance their jobs, rather than replace them, resistance will diminish.”
Actual usage example
Mr Thriv pointed to examples of New Zealand businesses already benefiting from small, targeted changes. Service-based companies are using AI to create customer communications and marketing content with an established tone. Teams working with high email volumes are using AI to highlight priority actions that might otherwise be missed. Some people use it to maintain an online presence and manage customer reviews during busy periods.
Hayden said these improvements can reduce steps in common processes.
“Processes that once required seven touchpoints can often be streamlined to three,” he said. “Saving even one hour a day can quickly lead to meaningful productivity gains.”
5 principles
Thryv has set out five principles that it claims will help companies move from experimentation to more consistent results. Start with a free or entry-level tool to reduce upfront costs and give your team time to test use cases and build confidence.
Second, focus on data quality. AI tools rely on accurate customer and operational data for tasks such as drafting communications, generating insights, and supporting decision-making. Third, invest early in training, including basic instruction, so your staff can use the tools responsibly and consistently.
Fourth, embed AI into your workflow rather than using it occasionally. Regular use makes it easier to measure results and improve processes. Fifth, involve employees early to build a culture of collaboration and ensure adoption is treated as a shared change rather than a forced technology migration.
employee pressure
Hayden believes that as tools become more commonplace in the workplace, access to AI will be tied to employee expectations and retention.
“Many employees are excited about AI tools, and if companies don’t provide sufficient opportunities for adoption, they risk losing top talent,” he said.
Mr Thriv said the next stage for many New Zealand businesses will be to focus on building a stronger culture around the use of AI and redesigning workflows as confidence grows.
“AI works best when it’s within the tools that businesses already use on a daily basis. That’s where the momentum comes from,” Hayden said.
2025 Thryv Business Index and Consumer Reports for New Zealand surveyed 2,079 respondents, including small business decision makers and consumers from a variety of industries and geographies, to explore business capabilities, technology adoption and consumer expectations.
