An EMA
White Paper
People-first workforce transformation and leadership imperatives for New Zealand business in the AI era.
The AI revolution has already arrived. Workforce readiness has not. Across New Zealand, businesses are rapidly adopting AI technologies that are changing how work is done, how decisions are made and how teams operate. Yet many are investing in tools faster than they are investing in people, creating a widening gap between technological progress and organisational capability.
This gap could become one of the defining business challenges of the decade, but also one of its greatest opportunities. The future winners will be determined by who can build the leadership capability, workforce skills, governance and trust required to transform their businesses.
The evidence in this report suggests many New Zealand businesses are not yet ready for that
challenge.
The findings reveal a concerning value gap growing across New Zealand businesses. As investment in AI technology and investment in workforce capability diverge, ROI and productivity are left unrealised.
Insights at a glance
AI adoption is already mainstream
83% of surveyed businesses are already using AI through piloting, experimentation, or embedded business processes.
Workforce readiness is lagging behind adoption
Many businesses are adopting AI tools without equivalent investment in workforce capability, leadership readiness, governance, or change management. This leads to the risk of shadow AI, which involves the use of AI tools without the knowledge, approval, or monitoring of IT and security teams. Without workforce readiness, AI investment will fail to delivery meaningful productivity gains or competitive advantage.
SMEs face the largest capability gap
Smaller businesses are experimenting heavily with AI but are less likely to have formal oversight, workforce capability programmes, or governance frameworks.
This wave of AI is focused on productivity and efficiency
Most businesses are currently using AI for administration, content creation, summarisation, workflow optimisation, customer support, and operational efficiency, rather than full organisational redesign.
Human skills are becoming more important
As AI automates routine tasks, demand for judgement, adaptability, communication, ethical reasoning, and critical thinking are increasing.
Experimentation without strategy is wasted investment
Commercial outcomes and meaningful productivity gains are still out of reach for most businesses without a clear approach to workforce capability.
AI is democratising data and decision-making
AI tools are enabling more employees to access information, generate insights, and make decisions without specialist expertise.
Leadership capability is emerging as a major constraint
Executive leaders lack clarity on AI governance, work redesign, accountability boundaries, and effective AI-supported decision-making. Operational leaders require top-down confidence to implement AI strategies and processes effectively. The relationship between chief executives and chief people officers will also be increasingly important for long-term growth and internal alignment. Across levels, leadership capability is now a critical determinant of whether AI investment succeeds or fails.
Governance and trust remain underdeveloped
Despite widespread experimentation, SMEs in particular lack confidence in responsible AI use.
Readiness is the real competitive advantage
Access to AI technology is becoming increasingly universal. What will separate successful businesses from the rest is how prepared they are to use it.
2026 Report: AI adoption is outpacing workforce readiness
What’s next?
Workforce 2030 is designed to build capability over time.
Whether you’re looking for strategic insight, practical tools or peer discussion, there’s a next step designed for you.
People-first AI webinar series
The flagship quarterly conversations shaping New Zealand’s workforce future.
The CEOxCPO Room
Exclusive sessions for CEOs and CPOs navigating organisational transformation together.
