AI moves from hype to hard results for Kiwi businesses, 2degrees study reveals

According to Productivity Propelled: The impact of AI on business performance, the average SME earned around $400,000 more in FY25 than a comparable non-adopter, while the average large business earned approximately $59.1 million more.

Drawing on survey data collected between January and February 2026, the research provides the first New Zealand-specific estimate of the relationship between AI adoption and firm-level productivity. It examines how businesses are using AI, where investment is being directed, and the barriers preventing wider adoption.

2degrees Chief Business Officer Andrew Fairgray says the findings show an encouraging early trend.

“The research shows that AI is no longer theoretical. It actually gives us some practical levers that we can use to lift productivity, if we adopt it and we adopt it properly. The data is saying that AI is already in use every day across businesses. But it’s now about how that intent turns into actual real growth,” says Fairgray.

“If you could get even 10 percent of that $400,000 uplift, I think any business would be delighted,” Fairgray says. “So from a confidence perspective, get in and go and use it. And then reinforce the point: don’t just use it. Redesign how you’re using it, and transform how you’re thinking about the business.”

However, the report shows it’s still early days. While 82% of businesses report using AI, many remain in the early stages of adoption. Most rely on AI features built into tools they already own rather than implementing standalone solutions. Larger businesses are moving faster than SMEs, with smaller firms less likely to be currently using or planning to adopt specific AI tools.

Meanwhile, New Zealand has fallen behind on all key productivity measures, including capital productivity, GDP per capita, and investment spending, underscoring the urgency for businesses to lift performance.

Liza van der Merwe, Deloitte Access Economics Lead Partner at Deloitte New Zealand, says AI presents a significant opportunity, but only if businesses have the right foundations in place.

“Progress depends on building mindset, systems, and skills in tandem. When these come together, businesses are far better placed to turn AI into real productivity gains,” says van der Merwe.

“For many organisations, the biggest gains are not from inventing new technologies, but from using what already exists more effectively. That means integrating AI into day-to-day operations, supported by the right infrastructure, processes, and ways of working. Ambition alone isn’t enough - without the right systems and capability, businesses risk getting stuck in experimentation rather than delivering meaningful results.”

The report also highlights that AI investment is accelerating rapidly, particularly among newer businesses. Organisations established in the past two years expect to devote more than half of their technology budgets to AI by FY27, signalling a clear shift in investment priorities.

Fairgray says the opportunity is clear, but outcomes are not guaranteed.

“AI itself will not lift productivity. The benefits depend on how effectively organisations adopt it, integrate it, and build the capability to use it well. This report provides an early indication of what is possible, and where effort needs to be focused next.”

The Productivity Propelled report is the second in a series from 2degrees and Deloitte Access Economics, aimed at helping New Zealand businesses better understand and improve productivity through technology adoption.

Productivity propelled: The impact of AI on business performance (1.1MB)