TUANZ Launches 2026 Digital Priorities Report, Warning Of Growing Innovation Gap For New Zealand
The Technology Users Association of New Zealand (TUANZ)
today released its 2026 Digital Priorities Report,
highlighting that New Zealand is at a pivotal technological
crossroads, with strong digital foundations at risk of being
undermined by slowing adoption and widening global
competition.
The sixth annual report, delivered in
partnership with One NZ includes insights from interviews
with nearly 30 CIOs and CTOs from major enterprises or
public sector organisations around Aotearoa.
Despite
maintaining world-class fibre infrastructure and a
reputation for sound digital governance, the report finds
New Zealand’s overall technology adoption has plateaued,
with digital leaders rating progress at just six out of ten.
This stagnation comes as other nations accelerate their
digital transformation efforts, creating a widening
innovation gap.
Shift from AI experimentation to
pragmatism
The 2026 Digital Priorities Report
highlights a decisive shift in how organisations approach
emerging technologies, particularly artificial intelligence
(AI). Kiwi organisations are moving away from experimental
use cases toward practical, high-volume applications
embedded within existing platforms to deliver measurable
returns on investment.
However, this evolution has
introduced new challenges. “AI is no longer a future
concept, it’s operational today in many large businesses
around Aotearoa,” said Craig Young, Chief Executive
Officer at TUANZ. “But while it acts as a powerful
workforce multiplier, it is also intensifying the deep-tech
talent shortage and reshaping how skills are
developed.”
Advertisement – scroll to continue reading
A key concern identified by tech leaders
is the “ladder-pulling” effect, where AI automates
entry-level tasks traditionally used to train junior staff,
potentially disrupting the pipeline of future
talent.
Rising risks: Shadow AI, costs, and
cybersecurity
The report also points to a surge in
“Shadow AI”, unsanctioned tools used within
organisations, which has contributed to recent data breaches
and heightened security
risks. The report warns that
AI systems must now be treated as digital employees,
governed by strict zero-trust security frameworks.
At
the same time, organisations are under mounting economic
pressure. Escalating software licensing and cloud costs are
driving a shift from “cloud-first” to more strategic
“cloud-smart” approaches, while fragmented and
poor-quality data continues to hinder transformation
efforts.
One NZ has again collaborated with TUANZ on
the report and its Chief Information Officer, Adrian
Albuquerque was one of the interviewees. He comments,
“Digital transformation is a key enabler for many
organisations – however in a cost constrained environment,
many technology teams are grappling with how to drive value
while also investing in new capabilities and tools.
Strategic deployment of AI is imperative for New Zealand to
continue maturing our digital economy.”
Global
standing slips amid domestic challenges
New
Zealand’s position in the global digital landscape is also
under strain, with the country dropping to 23rd in the 2025
Network Readiness Index. While strengths remain in areas
such as e-commerce regulation and inclusive governance, the
nation lags in individual digital usage and faces persistent
cybersecurity threats.
Nearly half of large businesses
reported experiencing a cyberattack in the past year, with
AI-driven social engineering tactics, including deepfakes
and voice cloning, becoming increasingly
sophisticated.
Albuquerque adds, “As New Zealand’s
telco, our internal teams and customers are fighting what
feels like a constant ‘whack a mole’ within our current
cybersecurity reality. AI tools are both helpful and a
hindrance with regards to scams and fraud, and it can feel
like a never-ending battle to stay ahead of sophisticated
bad actors. To better tackle this growing issue,
organisations must adopt an identity-first, zero trust
approach, and government must step up to meet this effort
with consistent, mandatory, cybersecurity and data
protection standards.”
Call for National Leadership
and Digital Action
The report delivers a clear
message: stronger national coordination and leadership are
urgently needed. Key recommendations from TUANZ when drawing
insights from tech leaders include:
The
introduction of mandatory, non-negotiable cybersecurity
standards
Establishment of a national digital
clearing house to vet global technology vendors
Government-led workforce development programmes to build AI
capability
Accelerated progress on a secure
national digital identity framework
Recognition of
data platforms as critical national
infrastructure
“New Zealand has the foundations to
succeed, but without decisive action, we risk falling
further behind,” said Young. “This is a moment for bold
leadership, to stabilise businesses, invest in people, and
build the governance frameworks needed for a
high-productivity digital future.”
About
TUANZ
The Technology Users Association
of New Zealand (TUANZ) is the independent membership
association for people and organisations who use digital
technology, networks, and services. TUANZ advocates for a
better digital future for all New
Zealanders.
© Scoop Media
Using Scoop for work?
Scoop is free for personal use, but you”ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.
Join Pro Individual
Find out more
Find more from TUANZ on InfoPages.
