AI Grows in New Zealand, but Shadow AI and Maturity Issues Emerge

Published Date : 19/08/2025 

Artificial intelligence (AI) adoption has surged in New Zealand, according to Datacom's third annual State of AI Index. However, the survey reveals significant issues such as 'shadow AI' and a 'maturity gap' among businesses. 

Artificial intelligence (AI) adoption has surged in New Zealand, according to Datacom’s third annual State of AI Index. The survey, which included 200 senior managers across a wide range of New Zealand businesses, was conducted by Curia during July. The findings highlight a significant increase in AI adoption, but also raise concerns about 'shadow AI' and a 'maturity gap'.

Artificial intelligence (AI) adoption stood at 39% in the first survey in 2023. Last year, this figure rose to 58%, and the latest survey indicates that nearly all New Zealand organizations are now using AI in some capacity. However, only 16% of respondents say that AI has revolutionized their business, and nearly half (48%) report that they are still at an exploratory phase.

The term 'shadow AI' refers to the use of AI tools and applications that are not officially sanctioned or managed by the organization. This can lead to security risks, compliance issues, and inefficiencies. The survey found that 37% of organizations have experienced 'shadow AI' incidents, where employees have used AI tools without proper oversight.

The 'maturity gap' is another significant issue highlighted in the survey. This gap refers to the difference between the level of AI adoption and the organization's ability to effectively manage and integrate AI into their operations. The survey found that while many organizations are using AI, they lack the necessary skills, infrastructure, and strategic alignment to fully leverage its benefits.

According to the survey, the primary drivers for AI adoption in New Zealand include improving operational efficiency (67%), enhancing customer experience (54%), and gaining a competitive edge (51%). However, the main barriers to AI adoption are the lack of skilled personnel (61%), high costs (52%), and concerns about data privacy and security (49%).

Datacom, a leading technology company in New Zealand, emphasizes the importance of addressing these challenges to fully realize the potential of AI. According to their experts, organizations need to invest in AI training and development, implement robust governance frameworks, and foster a culture of innovation and collaboration.

Despite the challenges, the survey also highlights positive trends. For example, 72% of respondents believe that AI will have a positive impact on their organization in the next three years. Additionally, 65% of organizations are planning to increase their AI investments in the coming year.

In conclusion, while AI adoption in New Zealand has surged, organizations must address the issues of 'shadow AI' and the 'maturity gap' to ensure that they can effectively harness the benefits of AI. By investing in the right skills, infrastructure, and governance, businesses can position themselves to thrive in the AI-driven future. 

Frequently Asked Questions (FAQS): 

Q: What is 'shadow AI'?

A: 'Shadow AI' refers to the use of AI tools and applications that are not officially sanctioned or managed by the organization. This can lead to security risks, compliance issues, and inefficiencies.

Q: What is the 'maturity gap' in AI adoption?

A: The 'maturity gap' is the difference between the level of AI adoption and the organization's ability to effectively manage and integrate AI into their operations. It highlights the need for better skills, infrastructure, and strategic alignment.

Q: What are the primary drivers for AI adoption in New Zealand?

A: The primary drivers for AI adoption in New Zealand include improving operational efficiency (67%), enhancing customer experience (54%), and gaining a competitive edge (51%).

Q: What are the main barriers to AI adoption in New Zealand?

A: The main barriers to AI adoption in New Zealand are the lack of skilled personnel (61%), high costs (52%), and concerns about data privacy and security (49%).

Q: What percentage of organizations believe AI will have a positive impact in the next three years?

A: 72% of organizations believe that AI will have a positive impact on their organization in the next three years. 

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