Datacom releases 2026 State of AI Index research report

• AI adoption in New Zealand has reached 91%, but most organisations are yet to scale AI beyond exploratory and implementation stages. 

• Leadership and internal capability remain key barriers, with businesses increasingly recognising the need for dedicated AI ownership, skills and organisational change. 

• AI investment is growing and delivering productivity gains, but businesses need clearer strategies, governance and measurable use cases to turn adoption into lasting value.

New research from Datacom has found AI is now firmly embedded in New Zealand workplaces; however, most have yet to translate that adoption into organisation-wide transformation, with 81% still in the exploratory or implementation stages of AI maturity. 

Datacom’s 2026 State of AI Index found 91% of New Zealand organisations now use some form of AI, up from 87% in 2025 and 66% in 2024, demonstrating the rapid uptake.

Despite widespread adoption, businesses are struggling to move to the next phase of maturity. Only 15% of organisations are at the stage of scaling AI organisation-wide, up slightly from 12% in 2025, while those using AI to transform core operations has fallen from 8% to 4%.  

Peter Nelson, Managing Director of Datacom New Zealand, says the findings suggest many organisations are finding AI adoption easier than AI transformation.

"The data suggests organisations are finding it much easier to introduce AI for basic everyday use cases than to scale it across their business. AI adoption has accelerated dramatically over the past two years, but widespread use isn't automatically translating into organisation-wide change. 

"What we're seeing in our work with customers is that the organisations making the most progress are treating AI as a business priority, with clear ownership, clear objectives and a strong focus on where AI can create value." 

The findings also point to a leadership gap. Only 22% of businesses have a dedicated AI leadership role, including 13% with a Chief AI Officer and 9% with another dedicated full-time AI leadership position. 

More commonly, AI responsibility has been added to an existing executive role, such as the CIO, CTO or CDO, at 26%, or is shared across several executives at 19%

Lou Compagnone, Director of AI at Datacom, says: “For many organisations, AI is still treated as a technology initiative, with responsibility added onto an existing executive role. But AI now touches strategy, workforce capability, governance, risk and organisational change.  

"If organisations want to move beyond pilots and isolated use cases, they need clear ownership and accountability. The organisations making the most progress are approaching  AI as a business transformation priority rather than a technology project." 

The findings align with Datacom's recent Australian research, which found two-thirds of organisations expect to appoint a Chief AI Officer or equivalent dedicated AI leader by 2027, with many citing the Australian Government's Chief AI Officer mandate as shaping their approach to AI leadership.  

When asked to identify the primary barrier to scaling AI, lack of internal capability or skills topped the list at 20%, followed by employee concern, resistance or fear of job displacement at 18%, and implementation costs at 17%. 

The barriers are also changing as AI adoption matures. Lack of internal capability has fallen 12 percentage points since 2025, while employee concern has increased seven points and implementation costs have risen eight. 

There are signs businesses are responding. Fifty-nine per cent now either employ or plan to employ dedicated AI talent, up 25 points from 2025, while 66% have provided AI skills training within the past year, up 10%. 

Compagnone says the biggest challenge facing organisations is no longer access to AI, but the need to adapt organisational processes around it. 

"The biggest gap we're seeing isn't between organisations using AI and those that aren't. It's between organisations that have adopted AI and those that are adapting their operating model around what AI now makes possible. Using AI tools is one thing, but knowing what to shift from and to – from existing workflows, services and ways of working to new models designed around AI – is something else entirely, and that's where the real value will come from."

Most (79%) New Zealand businesses have increased their AI investment over the past 12 months, while 73% plan to invest more over the year ahead. 

Businesses are also beginning to see returns. A third (33%) say returns from AI have exceeded costs, while a further 30% say the benefits and costs are broadly balanced.

Time savings and productivity gains are delivering the most value at 59%, followed by improved quality and accuracy of outputs at 41% and operational efficiency at 34%. 

Compagnone says businesses need a clear understanding of where AI can create the most value before increasing investment. 

"If businesses aren't actively identifying where AI can have the greatest impact, it becomes difficult to measure success and prioritise investment effectively. 

"The organisations seeing the strongest returns aren't necessarily those spending the most. They're typically the ones focusing investment on specific business challenges and use cases where AI can deliver measurable outcomes." 

General-purpose AI assistants such as ChatGPT, Gemini and Claude remain the most commonly used AI technology at 68%, followed by AI-enhanced productivity tools at 66%.

More advanced use remains less common, with 31% using AI embedded in business platforms, 26% using custom-built or in-house AI solutions and 13% using agentic or autonomous AI systems.

The research found 62% of businesses have some form of AI strategy, although the level of maturity varies. 

Only 16% have a clearly defined standalone AI strategy, while 23% have formally embedded AI within a broader business, digital or technology strategy. A further 23% say their strategy remains high-level or has not yet been fully operationalised. 

There are signs governance is becoming more established compared with 2025. AI policies, staff training, ethics and safety guidelines, and risk and compliance frameworks have all increased over the past year. 

Nelson says governance and leadership are becoming increasingly important as AI moves into core business operations. 

"As AI moves closer to core business operations, organisations need more than tools. They need leadership, governance and a clear understanding of where AI is likely to create measurable value and where it isn't." 

The research also suggests organisations are becoming more aware of the need to actively manage AI costs as usage grows. While 79% have increased AI investment over the past year, one in five organisations say they have not yet addressed AI cost management, and only 20% have a dedicated AI budget with clear cost tracking. 

“As AI platforms increasingly move towards consumption-based pricing models, understanding where AI is creating measurable value, and establishing what AI tool is best for a specific category or task, is likely to become increasingly important when making future investment decisions. 

"You wouldn't hire a 50-seater bus to transport two people from Hamilton to Wellington, so why use an expensive frontier AI model to improve an email or create basic content for a sales proposal." 
 

The Index also found that businesses are increasingly looking for clarity on the wider AI environment. 

More than half (55%) of business leaders are now somewhat or very confident New Zealand is prepared to manage the risks and opportunities of AI, up 18 percentage points from 2025, while the proportion who are not confident has fallen nine points to 40%.

At the same time, nearly two-thirds (64%) believe New Zealand should introduce specific AI legislation and controls, while 74% support a dedicated national AI framework and coordinating body. 

The findings mirror sentiment emerging in Australia, where Prime Minister Anthony Albanese announced the establishment of the Office of AI in July this year, and the Federal Government has mandated the appointment of Chief AI Officers across public-sector agencies and established a national approach to AI leadership and coordination. 

Datacom's recent Australian research found the move is influencing thinking well beyond government, with 73% of organisations saying it has shaped their approach to AI leadership. 

Nelson says organisations are looking for greater certainty as AI becomes embedded in everyday operations. 

"Businesses are looking for greater clarity around the environment they will be operating in. As AI becomes more embedded in critical services and everyday operations, organisations want confidence that there are clear expectations around governance, accountability and risk. 

"That certainty helps organisations innovate more confidently and invest for the long term." 

Compagnone says the next phase of AI maturity will depend less on adopting new tools and more on embedding AI into the way organisations operate.  

"The organisations creating the most value from AI are identifying where it can have the greatest impact, putting clear ownership around those opportunities and building the capability to scale them across the business." 

Download the full report: datacom.com/stateofAI