AI adoption lifts NZ business revenue, study finds

2degrees has published research linking AI adoption among New Zealand businesses to higher revenue. Deloitte Access Economics prepared the study.

The report found that the average small and medium-sized enterprise using AI earned about $400,000 more in FY25 than a comparable non-adopter. Among large businesses, the gap was much wider, with AI adopters earning about $59.1 million more than similar firms that had not adopted the technology.

Based on survey data from New Zealand businesses, the findings are presented as an early estimate of the relationship between AI use and firm-level productivity. The research also examined how companies are deploying AI, where they are directing spending, and what is holding back wider use.

AI use now appears widespread, at least at a basic level. The study found that 82% of businesses currently use AI, although many are still at an early stage and rely mainly on AI functions built into software they already use rather than dedicated tools.

That points to a gap between experimentation and deeper operational change. Larger organisations are moving more quickly, while smaller businesses are less likely to use specific AI products or plan to adopt them.

New Zealand's broader productivity backdrop adds weight to the findings. The country has gone backwards on several key measures, including capital productivity, labour productivity, multi-factor productivity, GDP per capita, and investment spending. Research and development spending as a share of GDP was the only measure to increase.

Productivity pressure

Capital productivity was down 1.3%, labour productivity fell 0.7%, and multi-factor productivity dropped 0.9%. GDP per capita also declined by 1.3%, while investment spending fell 3.5%.

Against that backdrop, the report presents AI as one of the few near-term levers businesses may be able to use to improve output and financial performance. It also suggests the effect is not automatic and depends on how well organisations incorporate the technology into everyday work.

"The research shows that AI is no longer theoretical. It actually gives us some practical levers that we can use to lift productivity, if we adopt it and we adopt it properly. The data is saying that AI is already in use every day across businesses. But it's now about how that intent turns into actual real growth," said Andrew Fairgray, chief business officer at 2degrees.

Fairgray also pointed to the scale of the revenue difference identified for smaller firms.

"If you could get even 10 percent of that $400,000 uplift, I think any business would be delighted," he said. "So from a confidence perspective, get in and go and use it. And then reinforce the point: don't just use it. Redesign how you're using it, and transform how you're thinking about the business."

Investment shift

AI spending is rising quickly, especially among younger businesses. Organisations established in the past two years expect to allocate more than half of their technology budgets to AI by FY27, indicating a marked shift in spending priorities.

Across the wider business base, AI currently accounts for 29% of technology spending, and that share is expected to rise to 34% over the next two years. The figures suggest that even businesses still in the early stages of adoption are setting aside a growing portion of their budgets for AI-related tools and systems.

Liza van der Merwe, lead partner at Deloitte Access Economics, Deloitte New Zealand, said stronger results will depend on more than buying software.

"Progress depends on building mindset, systems, and skills in tandem. When these come together, businesses are far better placed to turn AI into real productivity gains," she said.

She added that operational discipline matters as much as technical ambition.

"For many organisations, the biggest gains are not from inventing new technologies, but from using what already exists more effectively. That means integrating AI into day-to-day operations, supported by the right infrastructure, processes, and ways of working. Ambition alone isn't enough - without the right systems and capability, businesses risk getting stuck in experimentation rather than delivering meaningful results," she said.

The report's conclusions were echoed by business leaders focused on smaller companies, which often face tighter budgets and fewer in-house resources for technology change. For those firms, quantified evidence of financial impact may help shape spending decisions.

"It's incredibly valuable to see the benefits of AI productivity quantified in such an accessible and practical way. This report provides meaningful insights for SMEs, and 2degrees' leadership in driving this work creates a strong platform for businesses to take confident, informed steps toward AI adoption.

"Resources like this make a real difference to addressing both productivity and growing profitability," said Leeann Watson, chief executive officer of Business Canterbury.