NZ small businesses embrace AI but struggle to scale use

New Zealand small and medium-sized businesses are adopting artificial intelligence quickly, but many still lack the skills and processes needed to get consistent results, new research from small business software provider Thryv shows.

Data from the 2025 Thryv Business Index and Consumer Report for New Zealand found 57% of SMBs use AI, including AI-enabled software. It also found that 69% of respondents were comfortable or very comfortable using AI in business operations. However, a separate measure pointed to an implementation gap: 56% of businesses still lack meaningful AI use that reshapes how customers discover, compare and choose businesses online.

The findings suggest experimentation is common, but strategic integration is less developed. Many firms appear to be trialling tools for specific tasks, rather than changing workflows or making AI part of standard practice.

Barriers to scale

Rob Hayden, Thryv's global manager of AI innovation, said local businesses are at a turning point.

"Many business owners believe AI requires specialist expertise or advanced technical skills, which continues to slow progress and limit experimentation," Hayden said. "At the same time, providing teams with AI tools without context, training or strategy rarely leads to successful outcomes."

Misconceptions about complexity remain a practical barrier, particularly for smaller organisations with limited time for change management. The research also suggests that while many teams feel comfortable with AI, fewer have embedded it consistently into roles, governance and day-to-day routines.

Hayden said early use cases should focus on routine administrative work, rather than large-scale transformation.

"AI does not need to be complex to be valuable," he said. "The most effective starting point is identifying one repetitive, admin-heavy task and letting AI remove it from the working week."

Training shortfall

A key finding was the limited provision of formal training. Only 13% of businesses provide structured AI training, despite most reporting they already use AI-enabled tools.

This mismatch matters for risk management and consistency. Without shared guidance, staff may adopt tools unevenly, produce variable outputs, and struggle to judge when human review is required. A lack of training can also limit confidence among employees who want clearer boundaries and expectations for how AI fits into their work.

Hayden said practical guidance can quickly shift attitudes once teams understand how AI affects roles.

"People need guidance and reassurance before they can confidently use AI," he said. "Once they understand that AI augments their work rather than replaces it, resistance fades."

Practical use cases

Thryv pointed to examples where New Zealand businesses are already seeing returns from small, targeted changes. Service-based firms are using AI to draft customer communications and marketing content in an established tone of voice. Teams handling large volumes of email are using AI to highlight priority actions that might otherwise be missed. Others are using it to maintain their online presence and manage customer reviews during busy periods.

Hayden said these improvements can cut steps from common processes.

"A process that once required seven touchpoints can often be streamlined to three," he said. "Saving even one hour a day compounds quickly into meaningful productivity gains."

Five principles

Thryv has set out five principles it says can help businesses move from experimentation to more consistent outcomes. First, start with free or entry-level tools to reduce upfront costs and give teams time to test use cases and build confidence.

Second, focus on data quality. AI tools rely on accurate customer and operational data for tasks such as drafting communications, generating insights and supporting decision-making. Third, invest early in training-even basic guidance-so staff use tools responsibly and consistently.

Fourth, embed AI into workflows rather than using it occasionally. Regular use makes it easier to measure results and refine processes. Fifth, build a culture of collaboration by involving employees early so adoption is treated as a shared change, not an imposed technology shift.

Workforce pressure

Hayden linked AI access to employee expectations and retention as the tools become more common in the workplace.

"Many employees are excited about AI tools and if businesses do not provide sufficient opportunities for adoption, they risk losing good people," he said.

Thryv said the next phase for many New Zealand businesses will focus on building a stronger culture around AI use and redesigning workflows as confidence grows.

"AI works best when it sits inside the tools your business already uses daily. That's where momentum builds," Hayden said.

The 2025 Thryv Business Index and Consumer Report for New Zealand surveyed 2,079 respondents, including small business decision-makers and consumers across industries and regions, and examined business capability, technology adoption and consumer expectations.