Unlocking Aotearoa’s AI opportunity: TUANZ calls for trust, transparency and human oversight 

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FOR IMMEDIATE RELEASE
14 July 2026

The Tech Users Association of New Zealand (TUANZ) is urging a focused approach to the responsible use of generative AI, highlighting trust, transparency and human oversight as critical to unlocking its full value. With AI projected to contribute up to $76 billion to New Zealand’s economy  by 2038, TUANZ says realising this opportunity will depend on building and maintaining public trust. , 

As part of its 2026 policy programme, TUANZ today released its Responsible Generative AI position paper. The paper recognises strong early adoption across Aotearoa, while making it clear that sustained progress will rely on how effectively risks are managed and confidence is built. 

“AI presents a significant opportunity for New Zealand to lift productivity and strengthen our global competitiveness,” says Paul Littlefair, Chair of TUANZ. “Adoption is already underway, but trust will determine how far and how fast we can go.” 

While many New Zealanders are engaging with AI-enabled services, confidence remains uneven. Concerns around fairness, transparency and data use continue to shape willingness to adopt, and small businesses risk being left behind, with many yet to move from awareness to practical implementation. 

TUANZ’s position is that New Zealand’s competitive edge lies not just in adopting AI, but in becoming a trusted and responsible user of it. 

“We have an opportunity to lead not through scale, but through trust,” Littlefair says. “That means ensuring AI systems are transparent, accountable, and designed around people.” 

From principles to practical safeguards 

To support responsible adoption and build confidence in AI, TUANZ is calling for four priority areas:

  • Invest in our own AI capabilities: While supporting global tech investment, the Government must be brave and invest in New Zealand’s own AI capabilities, including providing state-backed AI services to ensure our domestic research sector remains globally competitive.
  • Mandate “Algorithmic Explainability” for High-Stakes Uses: Transition from soft law principles to targeted regulatory interventions. Organisations using AI for life-impacting decisions, such as banking or health, must provide clear, non-technical explanations of the logic used, ensuring no decision is hidden inside a “black box”.
  • Establish a National “Human-in-the-Loop” Standard: With 74% of Kiwis feeling more comfortable with AI when they know a human can step in, industry standards must guarantee seamless escalation pathways to human support. This ensures human oversight is always available to correct biased outputs or AI “hallucinations”.
  • Launch an “AI Readiness” Resource Hub for SMEs: To bridge the adoption gap, TUANZ offers to work collaboratively with the Government and other AI related groups to compile a practical toolset and webinar series specifically for SMEs, helping them move from hesitation to responsible implementation.

Building trust to unlock growth

TUANZ emphasises that responsible AI is not simply about managing risk, it is a key enabler of economic participation, innovation and long-term growth.

“Trust is fundamental to the success of AI,” says Littlefair. “When people and businesses feel confident in how these systems operate, they are more likely to adopt them, invest in them, and realise their full value.” 
“Getting this right positions New Zealand to capture the benefits of AI in a way that is inclusive, credible and aligned with our values.”

Responsible Generative AI Position Paper

ENDS

Media Contact: Michelle Park on behalf of Paul Littlefair, Chair, TUANZ

Notes to the Editor: This media release marks Week 5 of the TUANZ Policy Release Plan, focusing on the AI opportunity versus the trust gap. Over the final week of the rollout, TUANZ will release its concluding position paper covering Access and Inclusion for all of Aotearoa.

Strengthening trust through transparency: TUANZ calls for a shift to “active agency” in data use.

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FOR IMMEDIATE RELEASE
7 July 2026

The Tech Users Association of New Zealand (TUANZ) is calling for a step-change in how organisations manage and use data, urging a move from passive consent models to a more transparent, 

As part of its 2026 policy programme, TUANZ today released its Transparent Data Use position paper statement. The paper recognises the strong foundations New Zealand has established, while making a clear case for the next phase: enabling individuals to actively understand and control how their data is used. 

“New Zealand has taken important steps to strengthen digital trust,” says Paul Littlefair, Chair of TUANZ. “Recent updates to the  Privacy Act and the introduction of the Consumer Data Right are improving transparency and giving people more control. But as data use accelerates, particularly with the growth of AI, expectations are rising just as quickly.” 

Recent insights point to both opportunity and risk:

  • Most New Zealanders are now knowingly engaging with AI-enabled services
  • Strong data privacy expectations remain high
  • Trust is increasingly a deciding factor in whether people engage with organisations and new technologies 

TUANZ’s view is that trust cannot rely on long, complex privacy policies or one-off consent. Instead, organisations need to adopt a model of active and informed agency, where people clearly understand how their data is used, and can make meaningful choices in real time. 

“Organisations must move from viewing themselves as owners of data, to acting as kaitiaki, trusted stewards.” Littlefair says. “That means no surprises, clear communication and putting people in control.” 

Shifting from compliance to confidence 

To support a more transparent and trusted data environment, TUANZ is calling for four priority actions: 

  • Mandate “Algorithmic Clarity” for High-Stakes Decisions: The Government and industry must adopt a standard for Explainable AI. If an algorithm makes a decision impacting a citizen’s life, such as credit or insurance, the organisation must provide a clear, non-technical explanation of the logic used, eliminating “black box” systems.
  • Adopt Standardised “Data Nutrition Labels”: To combat confusing “wall of text” privacy policies, New Zealand should develop visual, standardised labels that allow consumers to compare data practices at a glance. This includes notices presented exactly when the data is requested.
  • Enable True Individual Control (Self-Sovereignty): Expand the Consumer Data Right beyond the banking and electricity sectors so users can safely share their data with third parties to get better deals. Furthermore, universal “Opt-Out” signals must be introduced to allow users to easily withdraw consent across platforms.
  • Uphold Māori Data Sovereignty: Ensure our data landscape honours Te Tiriti o Waitangi by implementing Ngā Tikanga Paihere (guidelines for ethical data use). Data use must respect the mana and dignity of individuals, and Māori data must be subject to Māori governance.

Enabling a high-trust, high-growth digital economy 

TUANZ emphasises that transparent data use is not simply a compliance issue, its a key enabler of innovation, productivity and international competitiveness. 

“Trust is a critical driver of digital adoption,” says Littlefair. “When people understand and feel confident in how their data is used, they are far more likely to engage, share and adopt new technologies. That creates the conditions for innovation and growth.” 

Transparent Data Use Position Paper

ENDS

Media Contact: Michelle Park for Paul Littlefair, Chair, TUANZ

Notes to the Editor: This release forms part of  TUANZ’s policy rollout, focused on strengthening trust, transparency and participation in New Zealand’s digital economy. The Transparent Data Use position paper is the fourth in a series of weekly releases covering key digital priorities for Aotearoa. 

Securing Aotearoa’s digital future: TUANZ Calls for “security by design” and stronger system accountability.

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MEDIA RELEASE
FOR IMMEDIATE RELEASE

30 June 2026

The Tech Users Association of New Zealand (TUANZ) is urging a shift to a more proactive and enforceable approach to cyber security, warning that current settings place too much responsibility on individuals and small businesses to manage increasingly complex digital risks. 

As part of its 2026 policy programme, TUANZ today released its Trust and Safety position paper, alongside a discussion paper on social media age assurance. Together, they set out a clear direction: New Zealand must move beyond a “user beware” mindset and embed “security by design” across digital systems.

“New Zealand has made real progress in strengthening its cyber defences,” says Paul Littlefair, Chair of TUANZ. “Better coordination through the National Cyber Security Centre (NCSC) and  initiatives like Malware Free Networks are delivering results. But the threat environment is evolving quickly, and our response needs to keep pace.” 

Recent data highlights both progress and pressure:

  • Significant disruption of malicious cyber activity across national networks
  • Tens of millions of dollars in harm avoided to critical organisations
  • At the same time, escalating scam losses and declining confidence among small businesses 

With New Zealanders losing an estimated $200 million annually to scams, TUANZ warns that the rapid advancement of generative AI is amplifying risks. Sophisticated, highly personalised attacks are becoming easier to execute, and harder for individuals to identify. 

This is creating a growing equity gap, particularly for small and medium-sized enterprises (SMEs), many of whom lack the capability and resources to keep up. A rising proportion of smaller organisations now report their cyber resilience as insufficient.

“Expecting individuals and small businesses to carry the burden of managing these risks is no longer tenable,” Littlefair says. “We need to design systems that are secure by default, not secure only for those with the time, expertise or resources to protect themselves.” 

From individual responsibility to system accountability 

TUANZ’s position is clear: improving digital trust requires a shift in where responsibility sits, from users to the systems and platforms they rely on.

To support this, TUANZ is calling for four priority actions:

  • Develop an Enforceable National Cyber Security Approach: Transition from voluntary guidelines to enforceable legislation, including mandatory reporting for major cyber-attacks and enhanced capabilities for agencies to investigate and prosecute global cybercriminals targeting New Zealanders.
  • Close the SME Gap with “Cyber Health Incentives”: Bridge the equity gap by introducing tax rebates or direct grants for SMEs to adopt essential security “hygiene,” such as multi-factor authentication (MFA) and secure cloud backups.
  • Mandate Platform and Provider Accountability: Enact regulation that requires telecommunications and social media platforms to proactively detect and block fraudulent activity and deepfakes, shifting the burden of identifying AI-generated scams away from the individual user.
  • Embed Cyber Safety as a Core Life Skill: Treat digital literacy with the same importance as reading and mathematics by mandating technology upskilling in the school curriculum, ensuring the next generation enters the workforce protected and prepared.

Supporting a balanced national conversation on online safety. 

Alongside the Trust and Safety paper, TUANZ has released a discussion paper, Navigating the Social Media Age-Gating Debate, to help inform policy development in a fast-moving and highly contested area. 

Rather than advocating a single solution, the paper sets out key principles to guide decision-making, including proportionality, practicality, privacy and equity. It also highlights the trade-offs inherent in age assurance approaches and the importance of grounding policy in evidence. 

“This is a complex issue with no simple answers,” Littlefair says. “What matters is that we have a clear, informed national conversation – and that we don’t default to solutions that shift responsibility back onto families without addressing system-level risks.”

Enabling growth through trust 

TUANZ emphasises that strengthening trust and safety is not only a defensive priority, but a critical enabler of growth. 

“Trust is fundamental to digital adoption,” says Littlefair. “If people don’t feel safe online, they will not fully engage with new technologies, including AI. Getting this right supports innovation, productivity, and the long-term competitiveness of our digital economy.” 

ENDS

Media Contact: Michelle Park on behalf of Paul Littlefair, Chair, TUANZ

Notes to the Editor: This release formed part of  TUANZ’s 2026 policy rollout, focused on strengthening New Zealand’s digital resilience and trust settings. The Trust and Safety position paper and accompanying discussion paper on social media age assurance are available as part of this programme below. 

Trust and Safety Position Paper
Discussion paper

Building Aotearoa’s digital workforce critical to unlocking AI-led growth.

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The Tech Users Associate of New Zealand (TUANZ) is calling for urgent, coordinated investment in home-grown digital capability to ensure Aotearoa can capture the significant economic opportunity presented by artificial intelligence and emerging technologies. 

New Zealand’s technology sector is already the country’s second-largest export earner, generating more than $17 billion annually. TUANZ says sustaining and growing that contribution will depend on addressing widening skills gaps and strengthening the pipeline from education to employment. ,  As part of its 2026 Position Papers programme, TUANZ has today released its Education to Employment policy statement. The paper sets out a pathway to build a more skilled and inclusive digital workforce, with a focus on developing talent domestically rather than relying on offshore supply. 

“We have strong foundations, including high levels of digital adoption and early uptake of AI,” says Craig Young, CEO of TUANZ. “However, demand for advanced digital skills continues to outpace supply. Without a more deliberate approach to building capability, we risk limiting the economic and productivity gains available to New Zealand.” 

The paper highlights the need to view capability as a lifelong pathway, from early education through to workforce participation, and outlines four priority actions for  Government and industry:

  • Mandate Technology Upskilling in the Core Curriculum: Elevate digital literacy to the same status as reading and mathematics, embedding essential digital skills from primary through secondary school to ensure every student is “digital-ready”.
  • Incentivise “Home-Grown” Capability and Digital Apprenticeships: Expand industry-led reskilling programmes by providing tax credits or subsidies to businesses that invest in internal academies to train junior talent, particularly in regional areas and “deep tech” fields.
  • Encourage Diverse Pathways: Take the lead in developing career pathways that dismantle cultural barriers and actively encourage Māori, Pasifika, and Wahine into tech education and roles, ensuring our digital workforce represents our population.
  • Close the SME Digitalisation Gap: Provide government-backed financial incentives to lower the barrier to entry for Small and Medium Enterprises (SMEs) – the backbone of our economy – so they can improve their digital skills and cyber security defences.

“The transition from education to meaningful digital employment is a critical lever for  New Zealand’s long-term prosperity,” Young says. “Targeted investment in local capability will strengthen productivity, support economic resilience, and ensure more New Zealanders can participate in the opportunities ahead.”

To read the full position statement click here.

ENDS

Building on Strong Foundations: TUANZ calls for cross-party tech strategy to unlock Aotearoa’s digital future

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FOR IMMEDIATE RELEASE

16 June 2026

Building on Strong Foundations: TUANZ calls for cross-party tech strategy to unlock Aotearoa’s digital future

Aotearoa New Zealand has the talent, capability  and infrastructure to be a leading digital nation. But realising this potential will require a clear, long-term technology strategy that endures beyond electoral cycles, says the Tech Users Association of New Zealand (TUANZ).

Today, TUANZ begins releasing its 2026 Position Papers – Unlocking Aotearoa’s Digital Potential – setting out a practical roadmap to lift New Zealand’ back into the top tier of digital economies. 

TUANZ Chief Executive Craig Young says the opportunity is significant, but the current approach is holding the country back. 

“Technology can make New Zealand a better place – growing our economy, strengthening our communities and improving everyday life,” says Young.

“We have strong foundations, from world-class connectivity to a more renewable energy system. But to translate this into global leadership requires a more coordinated and long-term approach.”

Young says the key issue is not capability, but consistency. “Investment in technology and digital transformation doesn’t operate on three-year political cycles, and neither should our national approach. Without long-term certainty, we risk underinvesting and falling behind.”

Over the coming weeks, TUANZ will release detailed policy papers focused on five priority areas critical to New Zealand’s digital future: 

  • Education to Employment: building the skills for a digital future.
  • Trust and Safety: creating a secure, resilient digital environment.
  • Transparent Data Use: strengthening trust through clarity and control.
  • Responsible Generative AI: enabling safe, trusted adoption of emerging technologies.
  • Access and Inclusion: ensuring equitable connectivity and opportunity.

“Our members are clear: what’s needed now is certainty, coordination, and commitment,” says Young. “We are calling on political leaders to work across party lines to deliver a long-term digital strategy that matches the scale of the opportunity.”

TUANZ will continue to represent the voice of digital users, advocating for outcomes that ensure every New Zealander can participate in, and benefit from, a thriving digital future.

Message from the tech frontlines: Stop your blabbing, get to building

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This is an opinion post from Craig Young, TUANZ CEO, published in The Sunday Star Times on 3 May 2026.

We all know that technology has the power to make Aotearoa New Zealand a better place. When we get it right, digital innovation boosts our local businesses, connects our communities, and makes our everyday lives easier and more productive. We’ve got some amazing foundations to be proud of—like the world-class communications networks connecting our homes and our mostly renewable energy grid. But right now, we are sitting at a crossroads.

For the past six years at TUANZ (Tech Users NZ), we’ve taken the pulse of the nation’s technology leaders. To pull together our latest report, Aotearoa’s Digital Priorities 2026, I personally sat down and interviewed dozens of the country’s top digital leaders, from major corporate CIOs to leading tech experts. The aim of this report is simple: to find out what is working, what is holding us back, and what we need to focus on to ensure no New Zealander misses out on the digital future.

What I heard from these leaders was an inspiring belief in what we can achieve, but it was mixed with a heavy dose of frustration. While our global peers are racing ahead, we are at risk of drifting. When I asked these experts about the government’s recent leadership in technology, the responses were pretty blunt—many called it a “talk fest” that looks good on paper but lacks real execution.

With an election year upon us, it is time to turn our digital ambitions into national action. Our tech leaders have laid out five very clear things they want the incoming Government to tackle to get us back into the top tier of digital nations:

Set firm rules to keep us safe online. Right now, our cyber security landscape is a bit too much “carrot” and not enough “stick”. With the rise of AI-driven scams and deepfakes, businesses and everyday Kiwis are exposed. Leaders are asking the government to step up as a shield, looking for mandatory, non-negotiable cyber security standards and a central system to vet international tech vendors so our data stays safe.

Teach digital skills and keep our local talent. We are losing too many of our bright young minds overseas. At the same time, AI is starting to automate the basic, entry-level office jobs that we traditionally used to train our junior staff. To fix this, the government needs to lead a massive push for digital literacy, embedding AI and tech skills into everything from our primary schools to adult learning programs. We have to build a workforce that is ready for tomorrow.

Modernise government tech and create a digital identity. Our leaders are highly frustrated by how fragmented the government’s own technology systems are. We need to aggressively consolidate these separate systems to make things run smoother. Most importantly, it is time to finally implement a secure, national digital identity framework. Having a safe, centralised digital ID will help prevent fraud and make doing business as well as accessing public services so much easier for everyone.

Create a long-term plan that survives elections. Technology doesn’t work on a three-year political cycle. If businesses are going to invest millions into new ideas, they need certainty. Our leaders are desperately calling for a cohesive, bipartisan national tech strategy, especially around artificial intelligence and data, that all sides of politics agree on and stick to.

Invest in the hard infrastructure so no one is left behind. Finally, we can’t have a digital revolution without the physical power to run it. The government needs to continue to invest in our core infrastructure, like ensuring our energy grids can actually power the massive global data centres being built here. This is about making sure that as technology advances, all our communities, both urban and rural, have the foundation they need to thrive.

The message from the tech frontlines is overwhelmingly positive about our potential, but clear about the need for action. We have the tools, the talent, and the infrastructure to be a world-leading digital economy. Now, we just need the national leadership to make it happen.

TUANZ launches 2026 Digital Priorities Report, warning of growing innovation gap for New Zealand

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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.

(You can read the full report here)

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.”

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.”

(You can read the full report here)

Securing Aotearoa’s digital lifeblood – our critical infrastructure – from cyber attack.

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At TUANZ, we recently submitted our formal response to the government’s 2026 Enhancing the Cyber Security of New Zealand’s Critical Infrastructure System discussion document regarding the enhancement of our critical infrastructure.

The Big Picture: Why This Matters Now

Digital connectivity is no longer just a convenience; it is the “lifeblood” of our economy and society. However, we have entered a new era of sophisticated, AI-driven threats and large-scale social engineering. For our infrastructure to be truly resilient, we believe the government must shift from a reactive “user beware” strategy to one of proactive leadership.

Our submission highlights three core themes that we believe are essential for a safer digital Aotearoa:

  • Closing the Cyber Equity Gap: There is a dangerous divide in resilience between large corporations and SMEs. We are advocating for a framework that protects all users, not just those with the deepest pockets.
  • Moving Beyond Voluntary Guidance: Fragmented and voluntary initiatives are no longer enough. To achieve true national security, we need enforceable standards and coordinated strategy.
  • Reducing the Burden on the User: It is unrealistic to expect individual vigilance to stop structurally embedded threats. We believe the state should ensure a safe digital environment just as it provides physical safety through roads and policing.

Bridging the Gaps

While we support the government’s direction, we also pointed out what is currently missing; specifically the need for a “Lifespan Human Firewall”. Cyber resilience isn’t just about technical patches; it’s about empowering people where they live and work through education and community support.

We also raised concerns about transparency. If a user’s data is compromised by a critical provider, that user has a right to be notified directly, rather than the information remaining solely with government agencies.

New Zealand’s prosperity depends on a digital environment where trust and safety are guaranteed, not optional. As your independent advocate, TUANZ remains committed to working alongside the government to ensure this new framework serves the interests of every technology user in Aotearoa.

You can read our full submission here.

The hidden cost of scaling AI

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A guest blog post from Shannon Harris, Managing director of HP New Zealand

Artificial intelligence is moving rapidly from experimentation into everyday use. What began as pilots and proofs of concept is now embedded in how people write, analyse information, collaborate and make decisions at work. For many organisations, the conversation has shifted from whether to adopt AI, to how it can be scaled in a way that is effective and sustainable over time.

The more useful AI becomes, the harder it is to control the cost of running it. As AI becomes woven into daily operations, the challenge for leaders is no longer access to capability, but whether it can be run at scale without compromising performance, security or control. This is where AI moves from being a technology discussion to an economic one.

When scale changes the equation

Much of today’s AI relies on the cloud, with costs tied directly to usage. Every interaction, whether it is a prompt, a document summary or an automated workflow, consumes processing power. Individually, these interactions feel small and inexpensive. But when multiplied across hundreds or thousands of employees, those costs can grow quickly and unpredictably.

This is not a flaw in the technology, but a reflection of how valuable and widely used it has become.

There is a well-established principle in economics known as the Jevons Paradox, which says that when something becomes more efficient and easier to use, overall consumption tends to increase rather than decrease. In other words, the challenge shifts from what AI can do, to what it costs to run at scale.

As models improve and access becomes more seamless, usage accelerates. Even as the cost per interaction falls, total spend continues to rise. More efficient AI, in practice, does not automatically translate into cheaper outcomes.

At the same time, expectations of AI are changing. It is no longer viewed as an occasional tool, but as something that should be immediate, responsive and always available. When AI becomes part of everyday work, delays feel more noticeable, trust matters more, and tolerance for friction drops quickly. Systems that rely entirely on sending data back and forth to the cloud start to feel the strain, particularly as AI moves from experimentation to everyday reliance.

The future of AI at the Edge

This is why we are beginning to see a shift towards intelligence running closer to where work actually happens. Advances in hardware, software optimisation and model design mean that AI capabilities once reserved for data centres can now operate directly on modern devices. This is often referred to as AI at the Edge, but the idea itself is simple: put intelligence where it is used most.

The implications for businesses are significant. Running AI on-device reduces reliance on recurring cloud compute for high-frequency tasks, while improving responsiveness through real-time processing. It also strengthens privacy and security by keeping sensitive data local, which is increasingly important in regulated environments. Perhaps most importantly, it makes AI more economically sustainable as usage grows, allowing organisations to scale capability without a corresponding surge in ongoing costs.

This shift is not about replacing the cloud, but about designing a hybrid future where intelligence runs in the right place for the right task. Some workloads will continue to benefit from centralised cloud processing, while others are better suited to being handled locally. Designing for that balance requires a different mindset from leaders.

AI strategy needs to factor in long-term cost, scalability and trust from the outset. The organisations that succeed will be those that ask not only what AI can do, but how often it will be used, by whom, and at what cost over time. They will consider not just the power of a model, but how it fits into everyday work without introducing friction, risk or unsustainable expense.

At HP, we are seeing this shift clearly in our conversations with customers and partners. AI is becoming part of the fabric of work, and that means it needs to be efficient, secure and built to last. Bringing more intelligence onto the device is a critical part of making that possible, particularly as organisations look to embed AI more deeply across their workforce.

The next phase of AI will be shaped by smarter deployment decisions, and leadership that understands how the economics of AI matter as much as innovation itself.

Investing in Your Digital Future: New Education Offerings from TUANZ

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At TUANZ, our “Education to Employment” mission is simple: ensuring every New Zealander can thrive in a digitally connected world. To help our members stay ahead of the curve, we are officially launching our first suite of curated education offerings.

We have partnered with the Skills Development Group to provide members with access to expert-led training designed for measurable business uplift. Whether you are looking to master AI or sharpen leadership skills, these courses are built to bridge the gap between education and the workforce.

Exclusive Member Benefits

To support your growth, we’ve negotiated exclusive discounts for the TUANZ community:

  • 10% off individual courses with code: TUANZ10

  • 20% off bookings of 3+ people with code: TUANZ20

Curated for You

While the full catalogue is extensive, we’ve highlighted several key areas to get you started:

  • AI & Ethics: Practical frameworks for leaders and teams to implement AI confidently.

  • Leadership & Self-Development: Building emotional intelligence, critical thinking, and agile leadership.

  • Specialist Skills: Focused training in Finance Fundamentals and Sales Performance.

This is just the start of our journey to provide you with the tools needed for a digital-first economy. Explore the full range and register your interest on our dedicated page.

Explore TUANZ Education here