New Zealand small businesses are increasing their use of artificial intelligence, with 59% of SMEs now using AI in some form, up from 50% six months earlier. Prospa’s latest SME Sentiment Tracker found 33% use AI in specific business functions, 19% are experimenting with it, and 7% consider it strategically important across multiple functions. The proportion of businesses not using AI has fallen from 45% to 36%.

What is stopping New Zealand SMEs from adopting AI?

For SMEs yet to adopt AI, the biggest barriers are uncertainty about return on investment, cited by 34% of non-users, and not knowing which tools suit their needs, cited by 32%. Upfront cost was a barrier for 12%, suggesting many small businesses need clearer guidance on which AI tools can solve practical problems and deliver measurable value.

Methodology
The Prospa SME Sentiment Tracker surveyed 501 New Zealand SME decision-makers through independent research firm Clarity Insight. Respondents represented businesses with fewer than 50 full-time employees and less than AUD $20 million in annual revenue, with the sample weighted to reflect the SME sector’s industry distribution.
Key findings
  • 59% of New Zealand SMEs use AI in some form
  • AI use has increased from 50% six months earlier
  • The proportion of SMEs not using AI fell from 45% to 36%
  • 34% of non-users are uncertain about return on investment
  • 32% of non-users do not know which AI tools suit their needs
  • Cost and staff training time rank below uncertainty about value and tool selection