Improving AI literacy needed to improve uptake of technology, director says
More than two in three small and medium enterprises (SMEs) in New Zealand have no plans to adopt AI despite reported benefits on productivity and the economy, according to reports.
Data from the New Zealand Institute of Economic Research, as cited by Spark, revealed that 68% of SMEs have no plans to evaluate or invest in AI technology.
Among the barriers cited by SMEs on AI adoption are a lack of understanding and perceived absence of value.
The findings come in the wake of reported benefits from AI and advanced digital technologies, according to joint research from the NZIER and Spark.
It found that a 20% uplift in the use of advanced digital technologies would result in the following:
- Increase in industry output by 0.7% to 1.3%
- Increase in output of between $14.5 billion and $26 billion over 10 years
- Increase in GDP by a range of 1.15% to 2.08% per annum
"This in turn would generate compounding benefits for New Zealand society as a whole, as well as kickstart a bold ambition to 'move one technology generation forward,'" the report read.
Improving AI literacy
Greg Clark, Spark Consumer and SME Director, underscored the importance of improving AI literacy in the business sector to encourage them to adopt the technology.
"AI has huge potential to improve productivity, ways of working, and the outcomes we deliver for our customers. To lift productivity in New Zealand, we need to improve AI literacy across the business sector," Clark said in a statement.
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Spark will be offering a week-long AI Foundations course in November to support 2,000 business professionals to become AI literate in the next 12 months, according to the director.
"We know that AI can provide significant productivity gains, which is why it's so important that we bring New Zealand SMEs on the AI journey," he said.
The New Zealand government has also introduced a new AI Activator to encourage more businesses to utilise AI.
"AI is predicted to contribute $76 billion to New Zealand's annual GDP by 2038. It is crucial we support businesses to improve their awareness and uptake of AI," said Science, Innovation, and Technology Minister Judith Collins in a previous statement.