More than half of the nearly 350 business leaders in our pre-election poll flagged security (58 per cent), and insufficient regulation (53 per cent) as their major AI-related concerns. By contrast, less than a quarter (24 per cent) were worried about falling behind due to lack of utilisation.

The bigger issue suggested by our poll is that businesses are failing to connect the dots between their skills strategies and their security, and which government policies best enable that. Further regulation could stifle innovation and productivity.    

New Zealand businesses have long been responsible for protecting personal and commercially sensitive information relating to their people and clients. Governance of AI is simply an extension of that. The most important thing both they and the Government could do to protect businesses’ data, IP and services, and enable growth, is to invest in the right AI knowledge and skills.

Investing in training is key to security

The survey results suggest we are not yet making a strong enough connection between AI capability and AI safety. When business leaders ranked 10 areas for government investment, AI upskilling placed seventh. Less than 7 per cent put it among their top three priorities.

Yet an AI-literate workforce isn’t just a productivity asset. Investing in training from the top down can make a huge difference to how companies reduce security and business risks. Employees need to recognise when commercially sensitive information should not be entered into a public tool. Managers need to understand the limitations of AI-generated analysis. Boards also need to upskill, as they remain accountable for security and decision-making within their organisation.

The Government has acknowledged it has a role to play in helping businesses along this road. Just last month the AI Advisory Pilot aimed at funding small businesses to set up an AI roadmap was extended until mid-2027. Given the scale of the workforce, however, it will require investment and collaboration between the public and private sector to support everyone to become capable and confident using AI and implement the kind of governance required to make organisations more resilient.

What else can the Government do?

This isn’t just about keeping businesses safe – it’s also important for competitiveness and growth. Despite New Zealand’s unemployment rate rising to its highest since 2015, 38 per cent of survey respondents ranked finding and retaining skilled talent among their top three concerns. At the same time, recent SEEK data shows job ads referring to AI skills increased by 93 per cent over the year to August.

There is clearly a need for more people with AI skills to help businesses compete in today’s world. It’s not just about filling tech industry shortages. We need people who can combine industry knowledge with the ability to use AI critically, productively and safely, and train others to do so as well.

It’s worth noting that encouraging highly skilled immigration was the area where the current Government’s performance scored lowest in our poll. Nearly half of those surveyed placed it in the bottom two positions. This shows a real opportunity for the next government to ensure immigration settings and incentives help businesses access specialised AI expertise to accelerate the transition and unlock the gains faster.

The encouraging finding is that, despite fears, AI is unlikely to result in an immediate wave of redundancies. Just 15 per cent of respondents expected AI to enable workforce reductions in their organisation over the following year. Instead, it’s likely these skills will be applied to exactly the things AI promises – helping address our longstanding productivity issues, supporting research in critical areas like healthcare, and enhancing the work New Zealanders do every day.

Government can support that transition through investment in education, immigration settings, and practical guidance that businesses of all sizes can apply. However, the onus is also on businesses to understand how their own hiring and training policies support risk management, and get involved in shaping policies that can help them succeed in an artificially intelligent world.