Artificial Intelligence (AI) is no longer a futuristic concept – it’s already reshaping how small businesses in New Zealand operate, market, and scale. From product photography to customer engagement, Kiwi entrepreneurs are proving that those who lean in early are gaining a competitive edge.
Levelling the Playing Field
AI is helping NZ small businesses punch above their weight. Tools that once required big budgets or specialist teams are now within reach for everyone. Whether it’s content creation, design, or automation, AI is giving local businesses the ability to act faster and smarter.
Richard Conway, founder of Pure SEO, explained the mindset shift:
“The choice we face as marketers, is to fear the change and bury our heads in the sand, or… see the change as a massive opportunity to embrace, evolve and adapt to change and lead our partners on the journey.” Stuff
For Conway, the turning point was personal: when both his 75-year-old mother and 13-year-old son started using ChatGPT within months of its launch, he realised AI was no longer niche but mainstream.
Marketing That Works Harder
AI is transforming marketing in NZ small businesses across the full funnel — from strategy to execution. The impact goes far beyond visuals.
Caroline Rainsford, Google New Zealand Country Director, recently challenged marketers at Digital Day Out 2025 to act now:
“AI-powered advertising is here today, reshaping every facet of the industry. And marketers who invest in adopting AI-powered advertising tools now will reap the greatest rewards.” NZ Marketing
She highlighted that AI enables businesses to:
- Predict consumer behaviour rather than just react to it, using real-time insights.
- Tap into multimodal search and shopping, from voice and video to image-based tools like Google Lens (now handling 20 billion searches a month globally).
- Deliver seamless experiences across “streaming, scrolling, searching and shopping,” where consumers expect personalised and frictionless interactions.
Global data backs up the opportunity. A joint Google–BCG study found that marketers leading in AI adoption reported 84% greater revenue growth than their peers.
At a practical level, Kiwi businesses are already applying these ideas. Auckland’s Matter Studio is using generative AI to reimagine product photography. Instead of costly on-location shoots, they generate backgrounds and merge them seamlessly with studio images:
“For exporters, it’s amazing. No scene is impossible, which gives brands the ability to create highly targeted imagery.” Stuff
Together, these examples show that AI is making marketing not just cheaper, but smarter, sharper, and more competitive, and enabling NZ small businesses to deliver personalised campaigns, harness predictive insights, and engage customers in the moments that matter most.
Boosting Productivity and Cutting Costs
Beyond marketing, AI is improving efficiency in everyday workflows. Graeme Blake, CEO of Blutui, highlights how AI is speeding up project delivery:
“What would take half a day to build a form and get it all connected… literally takes a few seconds. What do you do with that half a day? You’re more productive and can spend more time researching or powering through the project.” NZ Marketing
This illustrates AI’s power to free up resources letting small businesses reinvest time into growth activities rather than admin.
Risks and Roadblocks
While opportunities are vast, experts caution against diving in blindly. Nyssa Waters, CEO of Being AI, has pointed out the need for frameworks:
“New Zealand needs some form of policy guidelines in place to be able to allow small to medium-sized businesses to start using AI with frameworks.” NZ Marketing
Similarly, Danu Abeysuriya of Rush notes the ethical dimension:
“Technology has created a lot of society’s problems and it has the potential to solve a lot of them as well. What actually matters is how you wield it.” NZ Marketing
For small businesses, this means balancing innovation with trust, governance, and customer transparency.
Looking Ahead: Competing in the AI Era
The pace of change is staggering. As Waters noted:
“Google as we know it won’t be the same in 12 months’ time… Every business will have agents working for them, searching and serving up information.” NZ Marketing
The next few years will reward NZ businesses that:
- Invest in AI literacy across teams.
- Start with practical use cases (marketing, automation, customer insights).
- Build governance structures to use AI responsibly.
NZ Insights
The AI Forum of New Zealand recently released its second AI in Action: Productivity Report, showing just how quickly adoption is accelerating across Aotearoa.
- 82% of NZ organisations now report using AI (a 15% jump in six months).
- 93% say AI has made workers more efficient, while 71% report operational cost savings.
- 56% cite a positive financial impact, with AI reducing wasted time and freeing resources.
- Job displacement remains low at 7%, though 40% say they now need fewer new hires.
- 81% of businesses are investing in training, signalling that upskilling is being taken seriously.
As Executive Director Madeline Newman notes:
“Harnessing AI effectively remains crucial to addressing New Zealand’s productivity challenges and ensuring global competitiveness.” — AI Forum of NZ
Conclusion
For New Zealand small businesses, AI represents both a challenge and an extraordinary opportunity. As Richard Conway advises:
“The best piece of advice would be to get your hands dirty and try things. Play with them, test and iterate.” Stuff
AI won’t replace the creativity, intuition, and grit that Kiwi entrepreneurs are known for — but it will amplify them. The businesses that adapt today will be the ones leading the market tomorrow.
Learn with NZIE
At NZIE, we’re not just teaching digital marketing — we’re actively using AI tools across all our courses. From social media to analytics, our students get hands-on experience with the same technologies reshaping the business landscape. If you want to future-proof your skills and learn how to apply AI in marketing in practice, enrol now.
