Tech New Zealand has released Digital Foundations First: A Practical AI Pathway for New Zealand SMEs, following insights from the APEC Workshop on Empowering MSMEs Through Digital Transformation in the AI-Driven World, held in Ha Noi, Viet Nam in July 2026.
The report finds New Zealand is well placed to benefit from AI. New Zealand ranked third among APEC economies for generative AI use by the working-age population in early 2026. But widespread use does not yet mean widespread business transformation.
For many small and medium-sized enterprises, AI use remains limited to individual tasks or embedded tools. The bigger opportunity is to help firms build the digital capability required to move from experimentation to sustained productivity gains.
That means starting with the foundations: reliable connectivity, cloud-based business systems, digital payments, cyber security, usable data, digital skills and management capability. From there, businesses can adopt practical AI tools that address real needs – from customer service and marketing to forecasting, compliance and administration.
The report recommends a staged pathway for New Zealand SMEs: strengthen the digital base, support proven AI use cases, integrate AI into workflows where businesses are ready, and focus advanced support on areas of genuine New Zealand advantage.
For members, the report provides a clear view of the regional AI adoption challenge and a practical agenda for ensuring more New Zealand businesses can use digital tools and AI to improve productivity, resilience and growth.
