The AI Forum’s latest AI in Action report (August 2025) provides the clearest picture yet of how artificial intelligence is reshaping productivity in Aotearoa. Building on data collected since 2023, the third bi-annual survey highlights a transition from early experimentation to widespread integration, with AI delivering measurable benefits across industries.
Productivity gains remain strong. An overwhelming 91% of businesses report efficiency improvements from AI, with half citing positive financial impacts. Cost savings are increasingly evident, with 77% of organisations reducing operational expenses and more than a quarter reporting benefits of over $50,000 per year.
Workforce impacts are evolving. While AI has created new career opportunities in 55% of organisations, recessionary pressures mean 14% now attribute job losses directly to AI, up from 7% in earlier surveys. Nearly half of adopters report reduced hiring needs. At the same time, AI is driving demand for new skills in data, governance, and digital transformation, reinforcing the importance of upskilling the existing workforce.
Costs of adoption are falling. Barriers to entry have dropped dramatically. Three-quarters of organisations now report AI setup costs under $5,000, compared to nearly one-third spending over $50,000 a year ago. Operating expenses are also trending down, largely due to the availability of ready-to-use solutions.
Trust and literacy challenges remain. Public confidence lags behind adoption, with only 44% of New Zealanders believing the benefits of AI outweigh the risks. Concerns are particularly acute among Māori and Pasifika communities, underlining the need for inclusive engagement and transparent governance.
With government strategy affirming AI as a driver of productivity and case studies demonstrating real-world impact across media, education, engineering and local government, the report confirms that AI is moving from hype to tangible value in New Zealand’s economy.