A new Parliamentary committee report has warned that many international businesses are struggling to achieve a meaningful return on investment from artificial intelligence, even as New Zealand and Singapore position themselves as leaders in AI adoption. The report highlights that large global companies have reported limited success, with many proof-of-concept projects failing despite continued heavy investment in the technology. It notes that while AI is expected to play a key role in boosting productivity and economic growth, its real-world commercial benefits remain uncertain. Despite these concerns, New Zealand firms and policymakers remain optimistic. The Government is encouraging AI adoption as part of its economic strategy, while local companies argue it can still deliver productivity gains, particularly in sectors like engineering and software development. However, experts caution that the evidence is mixed, with some studies showing minimal or even negative returns. The report suggests that success may depend on targeted use cases, stronger skills development, and clearer regulatory guidance to ensure responsible and effective AI deployment.
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