Beyond the hype: Creating a plan for safe and effective AI use in your business

Understanding the shift from experimental tech to core business capability

For many of New Zealand’s small and medium businesses, the challenge is no longer whether to use AI, but how to do so safely, responsibly and in a way that delivers real value. For their business leaders, AI is increasingly a strategic consideration - not a niche innovation topic. 

The question that all business leaders should be asking themselves and their teams, is what does it mean for AI to become a core part of business capability? It’s beyond simply using the chat functionalities of modern AI Assistants – real adoption of AI means that it becomes embedded in your core business practices, with measurable efficiency gains across the business.

This direction is consistent with the Government’s Strategy for Artificial Intelligence, published in July 2025, which committed up to $70 million over seven years to support innovative AI research and applications, develop expertise and strengthen New Zealand’s competitive position. 

More recently, in January 2026, the Government announced the launch of an AI Advisory Pilot designed to support small and medium-sized enterprises to use artificial intelligence safely, responsibly and in ways that deliver genuine value. It will be delivered through the Regional Business Partner Network and is expected to include at least 51 participating businesses, who will have an opportunity to test ideas, build internal capability and better understand the governance considerations that come with wider AI adoption. For the wider business community, it signals a growing focus on how artificial intelligence is being introduced into everyday operations across Aotearoa New Zealand.

 

Balancing opportunity and risk

AI is moving quickly, and many businesses are finding it difficult to keep pace. The 2025 BDO New Zealand Risk Landscape Report highlighted that AI is one of the leading risk factors facing businesses. While more leaders globally see AI as an opportunity rather than a threat, the rapid and ready availability of AI tools is creating blind spots when it comes to governance, data management and risk control.
 

“As AI continues to reshape the business landscape, leaders need confidence that it is being used responsibly, with the right controls in place, and that it’s solving real business problems rather than creating new ones.” – Josh Ambler, BDO Digital National Leader

For boards and executive teams, this creates a dual challenge; enabling innovation while maintaining appropriate controls. Used effectively, AI has the potential to alleviate some of the people and talent pressures currently facing businesses, particularly by improving productivity and efficiency with relatively modest investment. Used poorly, or without appropriate controls, it can expose businesses to data breaches, cyber security incidents, fraud, negligence and quality related claims.

There’s also the importance of having solid, trusted processes in place as the foundation – using AI to automate a poorly maintained or poorly defined processes is going to do more harm than good.

 

Practical steps in preparing for responsible AI adoption

Looking beyond all the media hype, what are the best practical steps for small and medium business leaders to take in effectively getting started with AI – and gaining meaningful benefit for their business?  Josh recommends these key steps:

1. Set the ground rules. A critical first step is recognising that AI may already be in use across your business. Many employees are experimenting with publicly available tools as part of their day-to-day work. Establishing clear acceptable use policies, setting expectations around data quality and confidentiality. Regularly reviewing these controls is an essential starting point.
2. Define your core business processes. AI will amplify whatever sits underneath it. Before introducing AI, ensure your key business processes are clear, standardised, owned, and well maintained. Undefined or inconsistent processes lead to unreliable automation and risk at scale.
3. Identify key risks & responsibilities. At a leadership level, building a shared understanding of AI principles, risks and responsibilities is equally important. MBIE’s Responsible Artificial Intelligence guidance for businesses, including its quick start resources, provides a useful foundation for boards and executive teams to align on expectations and oversight. 
4. Establish strong data governance and trust. Responsible AI depends on trustworthy data. Define data ownership, quality standards, access controls, and retention rules. Be explicit about what data can and cannot be used with AI tools, particularly where personal, sensitive, or commercially confidential information is involved.
5. Solve meaningful pain points. Importantly, businesses should focus on business problems rather than technology for its own sake. The most effective AI use cases tend to emerge where there is a clear operational pain point, rather than where tools are adopted simply because they are available.
6. Draw on data insights. Are you making the most of all the data your business creates and collects? AI could help you with automated, scheduled reporting, and help you identify business insights that support your long-term goals.   
7. Assess the opportunities in using agents. AI agents can streamline business processes and autonomously complete certain tasks on your behalf. Learn more about Agentic AI here. 
8. Be open to solutions that don’t involve AI. Often in the process of solving a business problem with AI, we come up with better solutions that don’t require any AI. Remember that AI is one additional tool available to you – not the only one.

 

Looking ahead

The AI Advisory Pilot is a useful signal of where expectations around AI are heading at a national level. Artificial intelligence is becoming a standard consideration for business leaders, not a niche innovation topic.
 

“Businesses that take time now to build capability, clarify governance and understand their risk exposure will be better positioned to adopt AI safely, confidently and at scale as its use becomes more widespread.” – Josh Ambler, BDO Digital National Leader

 

How BDO can help

The BDO Digital advisory team go beyond simply implementing technology. We work with you to gain a deep understanding of your business needs before designing and implementing tailored solutions. Whether you’re experiencing rapid growth, need to modernise your systems, or are rethinking your approach to information management, we can help you identify where digital and AI enabled solutions can deliver the greatest value.  

In the context of AI adoption, this includes supporting businesses to establish appropriate governance frameworks, assess risk exposure, and prioritise use cases that balance innovation with trust and control.