New Zealand's tech sector shows resilience amid global challenges

The latest findings from DLA Piper's 2024 Tech Index Report reveal that New Zealand's tech sector remains resilient and poised for growth despite global geopolitical and regulatory challenges. The report surveyed 1,200 decision-makers from tech organisations worldwide, including executives from the Asia Pacific region, highlighting key opportunities in Artificial Intelligence (AI) and cautious optimism across the industry.

Nick Valentine, a partner at DLA Piper in Auckland and Head of the Technology and Data team, stated, "New Zealand's tech ecosystem is evolving rapidly, with AI and cybersecurity playing increasingly critical roles. While challenges remain, including gaps in AI expertise and the need for stronger digital security, the sector's focus on innovation and sustainability presents significant growth potential."

The 2024 Tech Index Report shows a three-point increase in the global tech confidence score to 71, reflecting growing optimism. Two-thirds of organisations expect revenue growth in the coming year, with nearly 40% anticipating increases exceeding 6%. In New Zealand, this optimism is mirrored by a strong focus on AI as a pillar of future success despite data privacy, security, and regulatory compliance challenges.

The report identifies several key findings. Firstly, 63% of global respondents see AI as the most critical area for growth, yet CEOs are not driving AI adoption. Concerning cybersecurity and Environmental, Social, and Governance (ESG) frameworks, despite confidence in managing digital threats, over half of the organisations surveyed lack robust digital security measures, and 76% lack a comprehensive ESG framework. This signals an urgent need for improved cybersecurity and sustainability strategies.

Confidence in 5G technology is growing, with 83% of decision-makers expressing trust in national security measures. However, there is a call for tighter regulatory controls and increased investment in domestic suppliers to strengthen infrastructure security. In terms of data monetisation, while 98% see opportunities in this area, only 38% employ data scientists to harness these opportunities properly.

The report also explores regional divergences, noting that Asia Pacific respondents, including those from New Zealand, are less optimistic about overcoming economic headwinds than their North American counterparts.

Valentine concludes, "As we navigate these challenges, New Zealand's tech sector has the opportunity to lead in AI and sustainability, driving growth not just locally but also as a key player in the global market."

The findings from DLA Piper's 2024 Tech Index Report underscore New Zealand's tech sector's resilience and potential for growth, even amid global uncertainties. With a strong focus on AI, cybersecurity, and sustainability, the sector remains well-positioned to capitalise on emerging opportunities while addressing key challenges related to expertise, digital security, and regulatory frameworks.