Source: Radio New Zealand
RNZ
A deep-tech talent shortage is among the emerging risks to New Zealand’s productivity as AI-powered business systems reshape how skills develop on the job.
The Technology Users Association’s (TUANZ) 2026 Digital Priorities Report, developed in collaboration with One NZ, highlights how technological advances are at risk of being undermined by slowing adoption and widening global competition.
“AI is no longer a future concept. It’s operational today in many large businesses around Aotearoa,” TUANZ chief executive Craig Young said.
Young said interviews with about 30 senior tech and information officers identified a number of issues requiring urgent attention.
“They’re saying they’re not seeing enough action and leadership at the national level. They’re seeing a lot of talk and some high level documents come out, but they’re not seeing a real collaborative approach to where digital is going in our future, and they want it to start today, because if we don’t start today, we’re behind already,” Young said.
He said the following list were things that required urgent attention.
- Establishment of a national digital clearing house to vet global technology vendors
- Government-led workforce development programmes to build AI capability
- Accelerated progress on a secure national digital identity framework
- Recognition of data platforms as critical national infrastructure, such as for health and electricity data
“This is a moment for bold leadership, to stabilise businesses, invest in people, and build the governance frameworks needed for a high-productivity digital future,” Young said.
Specifically the report highlights concern about how AI-automated entry-level tasks, traditionally used to train junior staff, were disappearing.
Young said this was an immediate risk to the development of future talent.
“In our future we’re going to have to have people who have very good soft skills, who are technically savvy. It is something that we need our young people to work on, if they want good careers in the new in the digital future.”
The report also points to a slow down in the adoption of technology.
Young said some of the digital leaders believed they were falling behind global peers.
“(They’re) saying, three or four years ago, it felt like we were really getting towards the front end of this. We seem to have slipped so that’s quite a concern, actually,” Young said.
“The report finds New Zealand’s overall technology adoption has plateaued, with digital leaders rating progress at just six out of ten. This stagnation comes as other nations accelerate their digital transformation efforts, creating a widening innovation gap.”
AI systems should be treated as digital employees
The report says the use of unsanctioned AI tools within organisations known as “shadow AI” had contributed to recent data breaches and heightened security risks.
“The report warns that AI systems must now be treated as digital employees, governed by strict zero-trust security frameworks.”
Escalating software licensing and cloud costs were driving a shift from “cloud-first” to more strategic “cloud-smart” approaches, while fragmented and poor-quality data continued to hinder transformation efforts.
One NZ chief information officer Adrian Albuquerque said many organisations were grappling with the ongoing costs and risks associated with digital transformation.
“Our internal teams and customers are fighting what feels like a constant ‘whack a mole’ within our current cybersecurity reality,” Albuquerque said.
Call for centralised security oversight
“AI tools are both helpful and a hindrance with regards to scams and fraud, and it can feel like a never-ending battle to stay ahead of sophisticated bad actors.
“To better tackle this growing issue, organisations must adopt an identity-first, zero trust approach, and government must step up to meet this effort with consistent, mandatory cybersecurity and data protection standards.”
The report finds nearly half of large businesses reported experiencing a cyberattack in the past year, with AI-driven social engineering tactics, such as voice cloning, becoming increasingly sophisticated.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
