Businesses in New Zealand are increasingly recognising the transformative potential of artificial intelligence (AI) tools in boosting marketing and sales effectiveness, particularly for small and medium enterprises (SMEs) looking to compete with larger organisations. While larger firms have embraced AI in sales and marketing at rates nearing 70%, many SMEs have remained cautious, potentially missing out on significant revenue growth and operational efficiencies. Research indicates that marketing teams leveraging AI typically experience a 5-15% revenue uplift, alongside streamlined campaign execution and enhanced customer personalisation.
The gap in AI adoption between larger companies and SMEs is narrowing, with about 82% of New Zealand SMEs now experimenting with AI, surpassing global and regional averages. This surge is driven by AI’s ability to optimise marketing campaigns, automate customer service, and deliver personalised recommendations, which collectively improve efficiency and customer engagement. According to a Salesforce survey, 95% of SMBs using AI have reported increased revenue, underscoring the technology's broad financial benefits for smaller businesses.
Despite this momentum, many New Zealand SMEs still face challenges in governance and workforce readiness related to AI deployment. While enthusiasm and adoption rates are high, concerns about AI reliability, security, and data privacy persist. Industry experts emphasise the need for robust AI governance frameworks to manage associated risks and build trust with customers. Current data suggests that fewer than 10% of organisations have developed mature governance structures around AI, indicating an area requiring urgent attention to ensure sustainable and responsible AI use.
Technological infrastructure improvements, such as widespread fibre broadband and cloud services, have paved the way for SMEs to implement AI solutions more easily. Integrated platforms like DxM Marketing AI, which consolidate multiple disconnected marketing tools , including email, social ads, bookings, and customer reviews , into a single cloud-based system, are particularly beneficial. These platforms reduce overheads, improve data insight, and enhance control over marketing efforts. Notably, trades and service businesses have seen promising results; industry studies reveal that 35-45% of calls outside regular hours go unanswered, with up to 80% never receiving follow-up, leading to substantial revenue loss. AI-driven communication triggers now enable these companies to reduce customer enquiry response times from an average of 11 hours to under 30 minutes, drastically reducing missed leads and lost income.
The reported benefits among organisations adopting AI marketing platforms are significant , including a 38% increase in qualified inbound enquiries within three months, a 24% reduction in cost per lead on paid channels, and daily time savings of over three hours through automation of follow-up and AI-generated responses. The financial impacts align with wider findings from the AI Forum of New Zealand, which highlights a surge to 82% in organisational AI use, 93% reporting productivity gains, and 71% noting operational cost savings. Importantly, AI adoption appears to complement rather than displace the workforce, with only 7% reporting job replacements due to AI.
Business leaders view AI as an amplifier of human capability rather than a replacement. Mathew Collins, Managing Director of DigitalxMarketing, emphasises that AI frees owners and teams from repetitive tasks, allowing them to focus on building trust and closing deals. He encourages businesses to identify strategic opportunities to deploy "AI Agents" that enhance customer relationships and growth potential.
Furthermore, the impending release of New Zealand’s first national AI strategy is expected to provide clearer government direction and priorities for AI adoption. This policy initiative, combined with technological readiness and integrated AI systems, creates a conducive environment for SMEs to harness AI's full potential in marketing and beyond.
While New Zealand’s SMEs are making strides in AI adoption, ongoing efforts in governance, skills development, and strategic implementation remain crucial. With proper frameworks in place, AI can be a key enabler for SMEs to increase competitiveness, drive revenue growth, and improve operational efficiency in a rapidly evolving business landscape.
📌 Reference Map:
- [1] (IT Brief) - Paragraphs 1, 3, 4, 5, 6, 7, 8
- [2] (Salesforce) - Paragraphs 2, 3
- [3] (NZ Business) - Paragraph 3
- [4] (AI Forum NZ) - Paragraph 6
- [5][6][7] (Salesforce) - Paragraph 2
Source: Noah Wire Services