The real opportunity is reinvention, not replacement

Key takeaways

• AI is creating a large-scale redesign of work across industries, with the biggest impact being job transformation rather than job displacement.
• Organisations generating the greatest value from AI are using it to reinvent how work gets done, not simply automate existing processes.
• New Zealand's opportunity is to become one of the world's smartest adopters of AI, applying emerging technologies to drive productivity and innovation.
• Success will depend as much on people as technology, with human capabilities such as judgement, creativity and leadership becoming increasingly valuable.

AI transformation goes far beyond technology. It involves governance, leadership, operating models, organisational culture and the ability to adapt quickly in an environment where the technology is evolving at extraordinary speed. In other words, AI is poised to fundamentally reshape work itself.

This is evident in PwC’s latest AI Jobs Barometer, which shows AI hiring in New Zealand has rebounded sharply, with AI-related job ads rising from approximately 3,900 in 2024 to 9,600 in 2025. AI skills are now required in 2.7% of all job postings nationwide, and we know this is just the start.

A large-scale rewriting of work across industries is underway, with AI augmenting tasks, accelerating decision-making and changing the skills organisations need to succeed. 

Globally, PwC's AI Jobs Barometer describes this as a ‘Great Divergence’ in the labour market. Rather than simply replacing jobs, AI is reshaping them in different ways. In some occupations, AI is automating routine work and increasing the value of human expertise, judgement and creativity. In others, it is lowering the barriers to performing complex tasks and changing the mix of skills required. The result is not a single future of work, but multiple pathways through which AI is transforming jobs and careers.

For many organisations, the first phase of AI adoption has focused on efficiency by automating repetitive tasks, improving workflows and helping employees work faster. 

These gains are real, and they are just the beginning. The organisations achieving the greatest returns from AI are not simply layering AI onto existing processes. As we discovered in PwC’s AI performance study ROI from AI study, they are rethinking how work gets done altogether. The most AI-mature companies generate AI-driven revenues more than seven times higher than their peers because they treat AI as a reinvention engine, not just a productivity tool. 

This requires a shift in mindset.

This trend is not unique to New Zealand. Globally, PwC's research shows that tasks requiring human capabilities such as empathy, judgement and creativity are being added to AI-exposed roles at more than twice the rate of less AI-exposed occupations. As AI capabilities improve, organisations are increasingly placing value on the distinctly human qualities that technology cannot easily replicate.

As organisations redesign workflows to unlock the full potential of AI, improve productivity and drive topline growth, it is also time to have a much broader conversation about the workforce itself. These decisions cannot sit solely with technology or operations leaders. People and culture professionals need a seat at the table as organisations rethink roles, capabilities, career pathways and workforce structures in an AI-enabled future.

The organisations that will succeed will be those that treat workforce strategy as central to AI strategy, recognising that technology transformation and people transformation must happen together.

One of the more interesting findings in the AI Jobs Barometer is that New Zealand looks different from many other countries in the study.

Financial services, health and the public sector all saw declines in AI hiring share in the most recent years, a trend that runs counter to most global markets.

At the same time, manufacturing emerged as a surprise leader, with an AI wage premium of around 62%, significantly ahead of other sectors.

This challenges the assumption that AI value creation sits primarily within technology and finance. In reality, AI has applications wherever there are processes, workflows and large volumes of information, such as in factories, healthcare systems, customer service environments or government agencies. 

Structurally, New Zealand’s AI economy is also heavily weighted toward ‘AI user’ roles rather than ‘AI developer’ roles. According to the AI Jobs Barometer more than 99% of AI roles in several sectors are focused on applying and integrating AI tools, rather than building foundational models.

That matters because it highlights where New Zealand’s competitive advantage may lie.

We are unlikely to compete globally on large-scale AI infrastructure or foundation model development. Where New Zealand can excel is in adopting emerging technologies quickly, applying them creatively and translating them into practical business outcomes.

From agriculture and advanced manufacturing to health and digital services, New Zealand has a strong track record of innovation built on agility and ingenuity. AI presents an opportunity to accelerate those strengths.

The AI Jobs Barometer also highlights a deeper transformation underway in the labour market.

High-exposure occupations have added an average of 78 new skills per role since 2019. This tells us that the biggest impact of AI may not be job displacement, but job redesign.

As AI takes on more administrative and repetitive tasks, human work will increasingly shift toward problem solving, judgement, creativity, collaboration and relationship management. The value of adaptability and continuous learning will continue to grow.

For business leaders, there is a growing need to rethink workforce strategy. Organisations will need to focus not only on technology, but also on upskilling, leadership capability and change readiness.

Traditional long-term transformation models are becoming less effective in a world where AI capabilities evolve every few months. The organisations most likely to succeed will be those that can move iteratively, by testing, learning and adapting rapidly as opportunities emerge.

New Zealand is still in the early stages of its AI journey. Many organisations recognise AI’s potential but are still determining how to capture meaningful return on investment. PwC’s recent CEO Survey found that while 64% of New Zealand business leaders believe their culture is ready for AI, 78% report little or no impact from AI so far.

That gap between readiness and realised value is where the real opportunity now lies.

The next phase of AI adoption will not belong to organisations that simply experiment with isolated use cases. It will belong to those willing to rethink how they operate, how they make decisions and how they deliver value to customers and citizens.

For New Zealand, the goal should not be to outspend larger economies in building AI infrastructure. It should be to become one of the world’s smartest adopters of AI. Applying these technologies to drive productivity, unlock innovation and create better outcomes across both the public and private sectors.

The organisations that move early, build capability and embrace reinvention will be best placed to lead in that future.