Skip to main content
Submit RFP

      Every organisation, be it the public or private sector, can significantly benefit from embracing AI.

      In just 18 months, the rise of ChatGPT and Generative AI has reshaped our organisations at a breathtaking pace, creating waves of innovations across Aotearoa New Zealand.

      We watch as hospitality industries adopt virtual concierges, retailers automate order fulfilment, AI route optimisation slashes delivery times, and financial services streamline intricate processes to elevate customer response times. These waves of change are converging to bring forth rapid behavioural changes and productivity uplifts through an unprecedented display of AI-driven revolution.

      Interestingly, as of May 2024, a bottom-up AI adoption revolution is sweeping across workplaces, with Microsoft recently reporting that 75% of employees use AI at work to enhance their output1. In addition, employees are not waiting for their employers to provide them with AI tools, they are bringing their own. In a trend that Microsoft refers to as BYOAI, 73% of Boomer employees (58 +) and 85% of Gen Z employees (18 – 28) have used AI tools at work that were not provided by their organisation.

      This surge in employee adoption contrasts sharply with caution displayed by several organisations' leadership, grappling with understanding AI capabilities, risks, practical applications, and uncertainties surrounding the ROI and value proposition of AI. KPMG’s Global Tech Report indicates that the rapid development of AI has led to a sharp decline in leadership confidence in their current AI deployment strategy. In 2022’s report, 40% of businesses said they had reached the “proactive” stage of their strategy for AI deployment; in September 2023, that figure dropped to just 15%2.

      Despite hesitations, leaders are looking to invest heavily in AI, with KPMG’s Global CEO Survey highlighting that 70% of CEOs see Generative AI as their top investment priority3. Leaders want to go for transformation before performance starts declining. However, they need to beware of following the herd – when KPMG asked leaders to explain their thought process behind their technology selections, the most popular reason given for investing in technologies was: to copy competitors. 45% say they are prioritising AI and machine learning because they believe market leaders have already adopted this kind of technology2.

      Rapid bottom-up adoption by employees and customers combined with leadership hesitation but a strong will to invest creates a dichotomy that makes a compelling argument for leaders to step back and define why, how, and when to introduce AI in their organisation.

      Alistair Evans
      Alistair Evans

      Director - Digital

      KPMG in New Zealand

      Steps for getting ready

      Defining your organisation’s unique AI value proposition is a good starting point. Why? For a successful implementation journey, key stakeholders will need to be across the benefits of the initiatives and investments. Establishing the AI value proposition is recognising and realising the transformation AI can induce across core business processes and operational efficiency. 

      Setting your AI plans into motion requires a comprehensive and well-articulated AI introduction strategy. To truly secure a competitive edge and enhance service delivery, organisations need to consider how they could harness AI strategically within their unique context. Taking cue from the three key themes highlighted by KPMG Australia4 can act as a strong starting point: 1. Tackle your biggest problems. 2. Go for transformation. 3. Right now, experimentation and innovation are critical.

      Effective AI implementation and successful data management go hand-in-hand. If your data is not ready for Generative AI, your business is not ready for Generative AI. Consider this: A whopping 93% of businesses concur that without a robust data strategy, they cannot leverage generative AI's full value. However, over half (57%) of these businesses are yet to revise their data5. Many organisations in New Zealand have a reliance on legacy systems, which poses a challenge to innovation. For many, the journey starts with centralising data and transitioning outdated systems to cloud architectures. 

      Equipped with an AI value proposition, a defined strategy, and revamped data systems, organisations are ready to chart the course for their AI journey. A clear roadmap with timelines, milestones, and initiatives owners gives all the organisation’s stakeholders visibility on the journey ahead. When developing the roadmap, remember the motto 'think big, start small, and scale quickly4

      Before, during, and after AI implementation, it is business-critical to quantify the realised benefits and calculate the return on AI investment. KPMG’s Global CEO Survey highlighted that 52% are expecting to see a return on their investment in three to five years3. However, measuring benefits is often easier said than done, and close to impossible if not taken into consideration early in the process. For a successful AI introduction journey, key KPIs and measuring mechanisms need to be established in conjunction with the initial AI roll-out.

      1. https://news.microsoft.com/annual-wti-2024/

      2. https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/09/kpmg-global-tech-report.pdf 

      3. https://kpmg.com/xx/en/home/insights/2023/09/kpmg-global-ceo-outlook-survey.html

      4. https://kpmg.com/au/en/home/insights/2024/03/exploring-role-generative-ai-in-banking.html

      5. https://sloanreview.mit.edu/article/five-key-trends-in-ai-and-data-science-for-2024/

      Accelerating the value of AI with confidence.
      Read more

      We are committed to guiding organisations through the complex AI ecosystem, crafting long-term strategies, undertaking required digital transformation, and supporting experimentation with new technologies. Our sector-specific insights enable us to support your AI journey with confidence.

      Are you ready to lead your organisation into a bold, AI-driven future?