New Zealand’s rapid adoption of artificial intelligence across organisations is meeting a critical inflection point as the Government moves to extend expert AI support to small businesses. Announced this week, the AI Advisory Pilot will now assist a total of 270 small businesses until June 2027, doubling the initial cohort and signalling a strategic push to bridge the gap between AI curiosity and meaningful transformation.
Recent data from a Datacom report highlighted by the University of Auckland shows that 91% of New Zealand organisations use AI in some form, a sharp rise from 66% two years ago. However, this widespread adoption masks a significant challenge: only 4% of these organisations report that AI is transforming their core operations. This suggests that while AI tools are being trialled or used in limited ways, scaling and embedding AI into business models remains elusive.
In response, the Government’s extension of the AI Advisory Pilot, confirmed in official statements reported by MLex and Beehive.govt.nz, aims to provide tailored expert guidance to small businesses navigating AI adoption. Small Business and Manufacturing Minister Cameron Brewer emphasised the importance of practical support, noting that since the pilot’s launch in April 2026, over 6,500 users have accessed the AI section of business.govt.nz, reflecting strong interest but also a need for hands-on help.
The extension will see a further 120 small businesses receive expert advice on integrating AI tools safely and effectively, complementing the initial 150 businesses supported. This initiative is part of a broader government effort to build AI capability across the economy, including tens of millions of dollars budgeted for AI-related activities in public agencies such as ACC and the New Zealand Transport Agency, as reported by Newstalk ZB and NZ Herald.
Why This Matters for Aotearoa
For New Zealand’s economy, small businesses are a vital engine of innovation and employment. Yet many face barriers in adopting AI beyond basic experimentation, including limited expertise, concerns about data privacy, and uncertainty about return on investment. The Government’s advisory pilot aims to reduce these barriers by providing trusted, locally relevant guidance that aligns with Aotearoa’s unique business landscape and values.
Moreover, the pilot’s timing is critical. Research from cybersecurity firm Avast, covered by RNZ, reveals an “AI confidence trap” where 66% of New Zealand adults believe they can identify AI-generated fakes, yet their actual behaviours do not consistently reflect this confidence. This gap underscores the need for education and support to ensure AI is used safely and effectively, particularly as AI-generated misinformation and security risks grow globally.
At the same time, the Government’s investment signals recognition that AI is not just a technological upgrade but a socio-economic shift requiring stewardship. The University of Auckland’s new human-centred AI initiative, Huanui, exemplifies this approach by embedding Māori knowledge and values such as kaitiakitanga (guardianship) and whanaungatanga (relationships) into AI research and deployment frameworks.
Balancing Opportunity and Risk
While AI offers clear benefits—boosting productivity, enabling innovation, and enhancing service delivery—the path to realising these gains is fraught with uncertainty. The low rate of AI-driven transformation among New Zealand organisations suggests many are still in pilot or exploratory phases, risking wasted investment or unintended harms if AI is deployed without adequate governance.
Extending expert advisory services to small businesses is a practical step to mitigate these risks. It helps ensure AI adoption is aligned with business goals, ethical standards, and regulatory requirements. It also supports the development of local AI capability, reducing reliance on overseas providers and fostering solutions tailored to New Zealand’s context.
For readers in Aotearoa and the wider Asia-Pacific, this development highlights the importance of government-led, values-driven AI support programmes that balance innovation with safety and inclusivity. As AI continues to reshape economies and societies, New Zealand’s approach may offer a model for other countries seeking to harness AI’s potential responsibly.
Looking Ahead
The extended AI Advisory Pilot is set to run until 30 June 2027, providing a valuable window to gather insights on what works in supporting small businesses. Its success will depend on ongoing collaboration between government, industry experts, Māori and Indigenous stakeholders, and the businesses themselves.
As AI adoption matures, the challenge will be moving beyond adoption to transformation—embedding AI into core operations in ways that deliver measurable value while safeguarding public trust. The Government’s initiative is a timely and consequential step in this journey.
AI disclosure: Automated systems assisted with research and drafting. Gemini independently peer-reviewed this article before publication. Sources are linked for verification.