Published on the 30/04/2025 | Written by Heather Wright

Invisibility and stagnation…

An annual survey of tech leaders at some of New Zealand’s largest organisations has highlighted strong discontent with an ‘invisible’ government and its lack of guidance, along with ongoing concerns about the country’s ‘risk adverse’ nature, cybersecurity and talent issues.

The annual Digital Priorities report from the Technology Users Association of New Zealand (Tuanz) show concerns that digital technology has been ‘sidelined’ by a government which has shown enthusiasm and rhetoric, but no meaningful action around technology yet.

“These are people looking to find ways of using  technology to up their productivity and growth, but not seeing any guidance or direction.”

Tuanz chief executive Craig Young, told iStart he is also concerned that the government is focused on technology as an export market, ‘missing a trick’ to harness technology and digital transformation as a way to significantly improve productivity.

“It’s pretty clear if you read the government’s growth agenda that they see technology as a way forward, but they’re really talking about developing the industry as an export market. But it’s not just an export market. It’s about what our businesses can do to grow and prosper and become more productive by using technology in their businesses,” Young says.

“These are people looking to find ways of using new technology to up their productivity and growth, but just not seeing any guidance or direction at the next level.”

Young says continuing to rely on growth and productivity in New Zealand from a limited range of exports dooms the country to stagnation and being ‘caught’ in the geopolitical environment, and technology – both the sector and the use of it by other sectors – will enable growth.

Digital Priorities 2025 draws on interviews with tech leaders at New Zealand organisations to identify their top digital priorities – cybersecurity, talent, digital inclusion, accelerating tech adoption, harnessing data, pervasive GenAI.

Many of the priorities have featured in previous years’ reports. That’s a concern for Young, showing a lack of traction or movement in key areas including bridging the talent gap and accelerating technology adoption.

The talent issue is one that looks to have been further exacerbated with the recent announcement from Penny Simmonds, Minister for Vocational Education, that will see technology and digital, including creative industries, moved out of the vocational educational system and back to the Tertiary Education Commission.

The announcement of the proposed new Industry Standards Boards prioritises will see digital and creative sectors locked out of the future VET systems and the innovation in work-based-learning that would have come out of the sectors will be lost, Young says.

“It means we are not going to see effort put into different and unique and accessible pathways for people to get into technology and digital roles,” Young says. “And that is one of the key things the leaders have come up with again: We need to grow our home talent. But we’re not seeing a focus on that.”

He says New Zealand must look to the tools and pathways which have proven successful in other vocations, alongside NZQA qualifications and university degrees, to get a wider range of people into technology.

“Digital and creative skills aren’t optional extras – they are foundational to every industry’s productivity and competitiveness. Without structures that support skills development in these areas, New Zealand risks being left behind.”

Many of those interviewed for the report, clearly already believeNew Zealand is being left behind with the report showing concern about the country being outpaced.

Those interviewed rated the country just six out of 10 for adoption of new technology.

“Our leaders felt New Zealand was too risk adverse and weren’t looking at opportunities that could be used.”

However, he admits some of that could be pragmatism. Last year leaders were looking at what to use Copilot for. This year, as SaaS providers such as Salesforce rush to build AI and agentic AI into their tools, many are taking a more wait and see approach – waiting to use those tools, rather than create their own.

“I can understand the pragmatic approach in that space. But overall, I get the sense from leaders that they feel like New Zealanders’ are really good at taking up technology for themselves [as consumers] but businesses are taking longer to make use of new technologies.”

It’s ‘vital’ that technology adoption is accelerated and data is harnessed effectively while navigating GenAI, and that the government steps up ‘in the right places’, he says, acknowledging that requires support from the industry as well.

“Our leaders recognise the fact private sector needs to work with the public sector on these things, but the government is such a big leader in size and direction, by setting direction in how they digitise their own business that encourages and helps private sector understand and be willing to invest to keep up.”

That leadership is key he says.

“If you look at it holistically, we’d like to see some leadership. And it doesn’t have to be a long-winded strategy, but something that says we’re going to move in this direction, we will support it – it may not necessarily be money though there does need to be some money somewhere – but we will work with industry and businesses to figure out the right settings, the things we should do and what we should be digitising in government to make your lives easier so we can all grow.”

AI is one area in particular Young says leadership is needed around what is good use – and what isn’t – for businesses and appropriate guardrails to be considered.

But he notes that the speed with which AI is progressing means regulation and standard government approaches won’t work.

“You have to have more of a strategic, flexible ongoing approach.”

The government has flagged in its Q2 Action Plan the publishing of the first Government AI strategy to help drive adoption of AI to boost productivity and grow the economy.

“We’re looking forward to seeing it and then working with them on it.”

Young says the interviews forming the report show the digital leaders, while from large organisations, are also very aware of the need for investment and assistance for small business.

It’s particularly disappointing that the Digital Boost program for small business has been cut, he says.

“The answer [for how we can help small business] isn’t in the report, but it does highlight that the issues around security, talent, use of AI, data privacy are not just big organisation things. They are issues across the board for any business and we need to help small businesses understand what they can do within their envelopes and abilities.”

So what are the top three action items Young believes would make the greatest difference right now?

“The first one would be around helping businesses understand GenAI – where they can use it, what they can use it for and what guidance they should give.”

Second is more focus on solving the talent issue and encouraging more people into STEM and digital careers, and working out different ways to get more people into digital apprenticeships and internships.

“That is definitely a private-public sector combination.”

“And then the other thing that would make a big difference is if we could get back on the path of helping SMEs understand what a digital future looks like and what they need to do. They cover all those issues – GenAI, talent, cybersecurity – but we need to be helping them and I don’t think we are,” he says.

“Digital technology is not just about the sector. It is about New Zealand and its transformation, and utilisation of the tools are critical to our nation’s success across the board, because if we want growth and productivity lift, we need to use these tools in every part of the economy.”