As Microsoft’s Global AI Tour arrives in Auckland on 21 April, the following blog post was published by Jane Livesey, President, Microsoft Australia & New Zealand
When I stepped into the role of President for Microsoft Australia and New Zealand, I knew I was joining at a pivotal moment. But it wasn’t until I began meeting with Kiwi customers, partners, and policymakers that the scale of the opportunity truly came into focus. From the boardrooms of major enterprises to the paddocks of rural innovators, it is clear that Aotearoa is ready to lead in the age of AI.
This is not a distant future. AI is already transforming how New Zealanders work, learn, and serve their communities. The organisations that act boldly and responsibly today will shape the country’s economic and social trajectory for decades to come.
A snapshot of impact: Microsoft’s economic contribution to New Zealand
Today, I’m proud to share the findings of a new Economic and Social Impact Report for New Zealand, developed independently by EY-Parthenon. The numbers speak volumes:
- In FY25, Microsoft contributed a total of NZ$9.4 billion to New Zealand’s economy.
- Our technologies enabled NZ$3.4 billion in productivity gains across the workforce.
- We directly supported 4,600 full-time equivalent jobs and sustained a further 49,700 through our partner and customer ecosystem.
These are not just statistics. They represent real people, real businesses, and real outcomes. From our datacentre investments to our partner network of more than 1,800 organisations across Aotearoa, Microsoft’s impact is deeply woven into the fabric of New Zealand’s digital economy. For example, Microsoft-only partner Arinco NZ has doubled its revenue in the last 12 months, expected to hit over NZ$6 million for in the 2026 financial year.
A nation on the front foot with AI
New Zealand is already a global leader in AI adoption. According to Microsoft’s Global AI Diffusion index, by the end of 2025, the country ranked seventh when it comes to adoption of AI tools in some form – a remarkable figure that places the country ahead of many peers.
Independent modelling suggests that AI could unlock up to NZ$102 billion in annual economic value by 2038. That is a transformative opportunity; one that depends on how quickly and confidently organisations embrace AI, invest in capability, and reimagine how they operate. We are already seeing the benefits. Microsoft 365 Copilot is saving users up to nine hours a month on routine tasks. Teams is helping workers reclaim up to eight hours a week. Azure AI is enabling data and engineering teams to do more, boosting productivity by up to 60 percent.
But this is only the beginning, and there is much more work needed for businesses and governments to build the right strategies and cultural shifts to adopt AI safely and securely. We’ve moved beyond the first wave of AI for productivity into a second wave focused on reinvention, new business models, new ways of working, and agentic AI operating alongside humans. As Kiwi businesses race to harness the enormous potential of AI, to me the story isn’t about showing what AI can do; it’s about showing how organisations are fundamentally changing because of it.
Building the digital backbone: our NZ North Datacentre Region
AI innovation needs strong foundations. That is why Microsoft invested in New Zealand’s first hyperscale cloud region, NZ North, which opened in Auckland in 2024. With three availability zones and 100 percent carbon-free electricity, this region provides local data residency, enhanced security, low-latency access to global cloud and AI services, and the resilience required to support national-scale transformation.
This investment reflects our belief that local control and global innovation can coexist. True digital sovereignty in the AI era means having the ability to govern and protect national data and infrastructure, while still accessing the best of Microsoft’s global technology and threat intelligence. Our approach gives customers the ability to manage their data through in-country cloud regions and tools, while benefiting from the scale and innovation of the global cloud.
Innovation in action: Kiwi organisations leading the way
Some of the most inspiring stories I have encountered come from right here in Aotearoa. New Zealand is among our leading markets globally for Microsoft 365 Copilot adoption, with 15 of the top 20 NZX companies, all four of the top banks, and 32 Government agencies using it today. Moreover, among customers who purchased Copilot in its first quarter of availability in New Zealand, Copilot seat counts have expanded by more than 760 percent.
PGG Wrightson, a cornerstone of New Zealand’s agriculture sector, worked with Microsoft partner Inde to develop SkyCount, a drone and AI-powered livestock auditing solution built on Azure and Power Apps. A single drone operator can now complete stock audits in minutes with 97 percent accuracy, replacing what was traditionally a labour-intensive, multi-day process.
Just this month, Westpac New Zealand became the first bank in Australasia to launch the Contact Centre as a Service capability, already seeing up to 30 per cent reductions in call times.
And in the healthcare space, Whakarongorau Aotearoa, which runs critical government-funded telehealth services, partnered with Microsoft to meet surging demand. It’s rolling out a new Welcome service to support Kiwi waiting to connect to human care. Built on Microsoft Azure AI, the Welcome tool is designed to provide immediate, non-clinical support from the moment someone reaches out. At Health New Zealand | Te Whatu Ora, the Hauora Māori Services team has taken a unique approach to implementing Microsoft 365 Copilot to ensure any use of AI reflects Māori values and aligns with expectations around data and security. Now fondly referred to as BroPilot, it has also become a valuable tool to advise on what Māori tikanga applies to certain healthcare scenarios.
Developing locally: our regional engineering hub
Another thing that sets Microsoft apart in New Zealand is the depth of our local commitment. We don’t simply sell technology into this market; we build it here. Microsoft’s Australia and New Zealand region is home to a nearly 1,000-strong engineering hub across both countries, making it one of our largest engineering and development centres anywhere in the world. What’s more, is we currently have dozens of open engineering roles across the region, testament to Microsoft’s commitment to building high quality tech careers down under.
This team works on cutting-edge cloud, AI and security solutions tailored to the needs of New Zealand organisations like Fonterra, for whom we developed Co‑op GPT, a secure, AI‑powered assistant built on Azure OpenAI to unlock insights from across the co‑op’s knowledge base. Having engineers of this calibre on the ground means we can respond faster to local requirements, co-create solutions with customers, and contribute meaningfully to New Zealand’s growing technology talent pool.
Empowering every New Zealander to thrive
We know that digital transformation must be inclusive. That is why we are investing in partnerships that help all New Zealanders build the skills they need to succeed in the AI era.
Today, Microsoft announced we’re doubling our commitment to AI and digital upskilling in Aotearoa, to provide a further 200,000 Kiwis with support to learn workforce-ready AI skills by 2028. We are working with organisations like Wintec and NZIST to deliver hands-on training, micro-credentials, and creative technology programmes, including initiatives tailored for Māori learners and kura kaupapa Māori. Our partnership with Stuff and Straker has helped support te reo Māori translations of news stories at scale, helping more people read their news in te reo Māori every day using the latest generative AI tools overseen by human language experts. This is about ensuring that the benefits of technology are shared widely and equitably.
We see the power of technology in the non-profit sector as well. Globally, Microsoft 365-supported AI solutions for non-profits have been estimated to lift fundraising by up to 20 percent and boost operational efficiency by 25 percent. Closer to home, Salvation Army New Zealand equipped 400 frontline staff with Surface devices through Microsoft partner Cyclone. This strengthened workforce mobility and zero-trust security, helping staff deliver services securely and effectively across communities.
A call to action: let’s lead together
New Zealand is uniquely positioned to lead in the next wave of digital innovation. The foundations are strong, the appetite is clear, and the opportunity is immense.
But true impact requires leadership; leadership that is courageous, curious, customer-centred and ready to rethink long-held assumptions. And it will take deep partnership, across industry, technology, government, and communities. Now is the time to develop your AI strategy, invest in your people, and build the capabilities that will define your future.
At Microsoft, we are here to help. With the technology, infrastructure, partnerships, and values to support your journey, we are committed to working alongside you.
Let us shape a digital future that reflects the best of Aotearoa — innovative, inclusive, resilient, and ready for what comes next.