The Great NZ Tech Confidence Gap — And How to Close It

New Zealand’s technology landscape is booming—but there’s a worrying gap that could derail growth and innovation if left unaddressed. This “Tech Confidence Gap” is rooted not just in technology itself, but in how businesses manage, secure, and strategically use their tech tools.

 “Most NZ leaders think their staff are cyber-ready. The staff disagree — and they’re probably right.”

Recent surveys, including a 2024 Datacom study, reveal a disturbing mismatch: while 71% of Kiwi executives believe their teams are well-equipped to handle cybersecurity threats, only 51% of frontline staff agree. This disconnect exposes businesses to a hidden risk—overconfidence at the leadership level is leaving teams unprepared and vulnerable.

Bridging the Cybersecurity Confidence Gap

• To close this gap, organisations need to:
• Conduct realistic cybersecurity drills and simulations.
• Regularly survey staff anonymously to assess genuine preparedness.
• Provide frequent, targeted cybersecurity training aligned with evolving threats.

 “AI is already inside your business — but most teams have no idea what it’s doing or where it’s sending your data.”

AI adoption, highlighted by tools like ChatGPT and Microsoft Copilot, has surged across New Zealand. However, according to recent commentary from cybersecurity experts like CERT NZ, most companies have inadequate AI governance frameworks in place. This ‘Shadow AI’ phenomenon mirrors the Shadow IT risks of past decades, creating security vulnerabilities and compliance nightmares.

• Implementing AI Governance:
• Define and communicate clear AI usage policies.
• Regularly audit AI tools for data compliance and security.
• Provide staff education around responsible AI use.

 “New Zealand’s digital skills shortage isn’t just a hiring issue — it’s a leadership problem.”

According to NZTech’s “Digital Skills for Tomorrow, Today” the digital skills gap isn’t merely due to a lack of candidates—it’s rooted in how businesses cultivate internal talent. The report underscores the critical need for better internal strategies to grow and retain existing employees’ tech capabilities.

Strategies for Addressing the Digital Skills Shortage:

• Invest in continuous digital skills training for current staff.
• Partner with education providers for tailored training programs.
• Create clear career pathways within tech roles to retain local talent.

“Tech doesn’t fail New Zealand businesses — the way we manage tech does.”

Research from IDC New Zealand points out that while NZ businesses invest heavily in technology, they lag significantly in governance, training, and management structures. Poor management practices—not the tools themselves—are often at the heart of tech failure.

Improving Tech Management:

• Regularly review tech governance frameworks.
• Invest in ongoing, practical training rather than one-off sessions.
• Ensure leadership accountability in tech-related outcomes.

 “If you haven’t run a risk assessment this year, you’re flying blind — and the turbulence is coming.”

Cyberattacks targeting NZ SMEs rose sharply in 2024, according to Netsafe and CERT NZ. Yet, alarmingly, fewer than half of SMEs regularly perform IT risk assessments. Businesses that neglect this crucial step face unexpected disruptions and potentially devastating losses.

Conducting Effective Risk Assessments:

• Perform regular, structured IT risk audits.
• Prioritise identified risks and address them methodically.
• Review and update assessments after significant business or tech changes.

 “We have world-class tech in NZ — but third-world digital governance.”

NZ businesses enthusiastically adopt new technologies but often overlook robust governance structures. Deloitte’s Tech Trends Report highlights the critical need for better digital governance to avoid pitfalls in tech adoption.

Strengthening Digital Governance:

• Establish clear policies around data use and technology implementation.
• Ensure regular compliance checks and governance reviews.
• Appoint dedicated governance leaders within the business.

 “Cyber insurance is the new smoke alarm. You don’t wait for a fire to install one.”

Cyber insurance adoption has increased in New Zealand due to rising threats. However, according to the Insurance Council of NZ, many businesses still view insurance as an afterthought rather than a proactive measure to bolster cybersecurity preparedness.

Proactive Cyber Insurance Measures:

• Regularly review cyber insurance coverage and compliance requirements.
• Use the insurance process to identify and address critical weaknesses.
• Treat cyber insurance as part of a broader cybersecurity strategy, not a standalone solution.

 “You don’t need enterprise-grade tools. You need SME-grade clarity.”

Kiwi SMEs often invest heavily in enterprise-level solutions that exceed their needs, as noted in recent commentary by BusinessDesk. More important than advanced capabilities is clarity about what tech solutions businesses truly require and how to manage them effectively.

Achieving SME-grade Clarity:

• Assess real business needs before adopting new tech.
• Implement simpler, targeted solutions that directly address specific problems.
• Regularly review tech effectiveness and adjust investments accordingly.

Conclusion

The Great NZ Tech Confidence Gap represents a critical risk—and opportunity—for Kiwi businesses. Addressing it requires transparent conversations, targeted strategies, and above all, honest self-assessment. By tackling these challenges head-on, NZ companies can transform their approach to tech management, build stronger security cultures, and close the confidence gap for good.

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