Māori firms turn to AI and innovation despite cost pressures
Māori business confidence has strengthened over the past year as firms shift from navigating a tough economy to planning for future growth, according to BNZ’s latest sentiment survey.
The 2025 BNZ Māori Business Sentiment Survey shows a clear lift in outlook, with 38% of respondents expecting general business conditions to improve in the next 12 months, up from 26% in 2024. The share expecting conditions to worsen has fallen from 38% to 28%.
Whetu Rangi (pictured), BNZ head of Māori business, says the results may signal a turning point.
“The past year has been challenging for all New Zealand businesses, but these findings suggest an optimism within the Māori economy, with businesses telling us they’re looking past the immediate headwinds and actively planning for future growth,” Rangi said in a media release.
The improved sentiment comes as regulators also focus more closely on Māori participation in financial services. The Financial Markets Authority (FMA) has released new Kaupapa Māori research to better understand Māori consumers’ and providers’ experiences and how te ao Māori values can be embedded in financial products and regulation.
Technology and AI seen as key growth drivers
Technology has emerged as a major opportunity, with 68% of respondents expecting to increase their technology adoption in the next 12 months, up from 58% in 2024.
Rangi says technology – and particularly artificial intelligence (AI) – is being viewed as central to lifting productivity, especially for Māori collectives that are lean on resource and want to improve their productivity.
“Business owners and managers are telling us they want to use these tools to reduce the admin load, ” he said. “This allows their teams to focus on higher value added work, and quicker decision making on activities central to their business success.”
However, many businesses are seeking guidance on how to adopt these tools safely and appropriately, especially around data protection and alignment with tikanga Māori.
“A view that came through in our survey is that cultural integrity is a distinct competitive advantage, with a number of participants noting that their values are often what differentiates them in the market,” Rangi said.
Costs still rising, but appetite for opportunity grows
Despite the improved sentiment, Māori businesses are still grappling with real pressures.
Eighty‑one per cent of respondents expect costs to increase further, while 49% anticipate higher regulatory compliance requirements, reinforcing the push toward operational efficiencies through technology.
Economic conditions remain the top challenge for 75% of respondents, yet the data also point to a strong drive to find new avenues for growth.
Beyond technology, some businesses see commercial upside in leveraging relationships and co‑investment to capture value at scale. Others emphasised the importance of building stronger governance capability to move beyond day‑to‑day operations, secure investment and compete for larger opportunities and contracts.
Positioning to lead the next phase of recovery
Rangi says Māori business sentiment is broadly aligned with the improving macroeconomic backdrop as inflation stabilises and interest rates ease.
“The timing of this technology adoption is important,” the BNZ leader said. “As the wider New Zealand economy begins to turn a corner, Māori businesses are doing the hard work now, looking to invest in efficiency and capability so they are ready to lead the charge when the economic recovery accelerates.”
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