NZ’s digital competitiveness: ‘You have to give us some guidance’

There needs to be a government-led effort to raise New Zealand’s digital competitiveness to include all businesses and socio-economic groups, an industry report says.

Aotearoa’s Digital Priorities in 2024 – produced by the Technology Users Association (TUANZ) – bases its findings on feedback provided by the chief information officers (CIOs) of about 30 leading non-tech NZ companies.

The report highlights the need to become more competitive in such areas as manufacturing, robotics, skills, cybersecurity, regulations and connectivity.

TUANZ chief executive Craig Young said the CIOs were most concerned about how to transform public and private sector organisations without leaving up to 20 percent of the population behind.

He said businesses in non-tech sectors were looking for leadership from government, which went beyond regulation and funding.

“It’s not enough for people in government to sit around and think about what they might do, and two years later come out with some regulation or legislation.

“No, these people are saying. You can’t afford not to move quicker. You have to work with us. You have to give us some guidance. We push and pull and we work this out together.”

Young said New Zealand did have what it takes to be a leading user of technology.

“It’s not just about developing technology companies, because while they’re cool and can drive some exports, it’s the rest of the economy that needs to pick these technologies up. And I think that’s where the CIOs are going,” he said.

“They really want to see a talent pipeline built.”

Young said there had been a shift in executive-level thinking about New Zealand as a net importer of tech-talent.

“This year it’s very much around… thinking about where is the next talent coming through? What are we doing about tech education? What are we doing about encouraging everybody to think about tech or a digital type capability in their careers?”

Young said CIOs wanted to see broad inclusion to ensure there was diversity, including Māori, Pacifica and low socio-economic groups.

“We need their skills, if we’re going to be a modern economy and a modern workplace.”

Young said the CIOs also wanted the government to use the tech tools available, which would help build trust across the economy.

“Businesses want to see the government use the tools themselves as well, because that enables them to do business better, because they’re dealing with like to like, rather than dealing with antiquated processes.”

The report also highlighted concerns about the lack of investment necessary to retain New Zealand’s intellectual property (IP).

“A lot of our greatest IP is being bought by American or Australian companies,” said Alvarium head of technology Avinash de Silva. “Over time, we’ll lose the use of that technology and the revenue that the business would bring into the country.”

Strengthening cybersecurity remained an increasing concern as criminals became more sophisticated and targeted in their attacks.

The report highlighted the increasing use of AI and deep fake videos to steal money from individuals and businesses.

It said New Zealand needed to keep abreast of emerging technologies, beyond generative AI and keep a close eye on quantum computing that will revolutionise classical computing and usher in a new era of technology.

PsiQuantum announced last week a commitment to invest A$940m to build a utility-scale quantum computer in Australia, which was expected to be turned on in 2027.

Infrastructure investor Infratil also announced this week it was raising more than a billion dollars, in part, to help CDC data centres meet growing international demand for generative AI data services in New Zealand and Australia.