Harnessing New Zealand’s AI Future
2024 IOD LEADERSHIP CONFERENCE OUTTAKE
At the 2024 Institute of Directors’ Leadership Conference, Tiffany Bloomquist, head of Amazon Web Services (AWS) in New Zealand, highlighted the significant investment AWS is making here – a $7.5 billion data centre region that is set to create more than 1,000 jobs and add $10.8 billion to the national GDP.
Yet, as Bloomquist made clear, the real opportunity lies not just in this infrastructure but in how New Zealand organisations and their leaders choose to engage with AI. The recent IoD one-day forum on Governing AI reinforced this and provided a foundation to help directors make good choices.
The need for strategic engagement with AI
Bloomquist’s message was one of both opportunity and caution. “No one knows where this path is going to take us . . . we have a very long journey in front of us,” she pointed out. However, the uncertainty surrounding AI’s future shouldn’t deter directors from engaging with AI. Instead, it calls for directors to deepen their understanding of its potential impact and take a proactive approach.
Bloomquist stressed the importance of building a culture of innovation that encourages experimentation and calculated risk-taking. “Push experimentation to the edge,” she advised, noting that AI can be a powerful tool if used strategically. She warned against adopting AI for its own sake, urging directors to ensure their strategy is driven by the organisation’s objectives, not by the allure of new technology.
“How do you build an AI strategy to align to your business goals and not the other way around? Make sure you’re thinking backwards about what you want to achieve and not just checking a box with AI.”
AI is not a one-size-fits-all solution. Its adoption should be carefully tailored to the specific needs and goals of the organisation.
Bloomquist talked about how Amazon’s culture of innovation starts with their mission and core values, but also their 16 leadership principles that are lived day in, day out.
A way forward for New Zealand
The Government, through its recently released Cabinet paper on AI, has emphasised the importance of seizing this moment. It recognises AI as a critical driver of future economic growth and is committed to supporting its responsible development and adoption.
The paper outlines the Government’s role in shaping the regulatory environment and guiding AI development in a way that protects the public interest, while allowing businesses to innovate and explore responsibly. The paper refers to the existing regulatory framework and suggests that updates may be needed as AI technology evolves.
Complementing the Government’s approach is the AI Blueprint for Aotearoa, recently published by the AI Forum of New Zealand. This blueprint provides a detailed plan for AI adoption, stressing the need for coordinated efforts across the public and private sectors. It recognises that AI can drive significant economic growth, but this potential can only be realised if businesses have the necessary skills, knowledge and governance structures in place.
Building AI talent
The Cabinet paper also highlights the critical need for AI talent, noting that while the demand for these skills is growing rapidly, the supply is not keeping pace.
Bloomquist acknowledged this challenge in her Leadership Conference presentation, emphasising that continuous learning and upskilling are essential for organisations looking to leverage AI effectively.
“Your people want this,” she said, referencing data showing a strong desire among workers across all generations to develop AI skills. For directors, this means that investing in AI talent is not just about your organisation hiring new people – it’s about developing the skills of your existing workforce and ensuring your organisation is prepared to thrive in a world shaped by AI.
A director’s guide to AI board governance
Recognising the complexities of AI, the IoD has developed a guide on AI governance at the board level. This guide is designed to help directors navigate the challenges and opportunities that AI presents, ensuring that their organisations can harness AI responsibly and effectively. Additionally, the IoD will soon introduce a course on AI specifically tailored for directors. This course will provide the essential knowledge and tools needed by directors and boards to make well-informed decisions.
Want to hear more and get insights like these? Keep an eye out for updates on the IoD’s 2025 Annual Leadership Conference– more information coming soon.