New Zealand tech sector positioned for global expansion amid record confidence levels
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, which surveyed 1,200 decision-makers from tech organisations worldwide, including executives from the Asia Pacific region, highlights key opportunities in Artificial Intelligence (AI) and a cautious optimism across the industry.
Nick Valentine, a partner at DLA Piper in Auckland, and Head of the Technology and Data team, notes, "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 challenges related to data privacy, security, and regulatory compliance.
Key findings:
AI as a growth driver: 63% of global respondents identify AI as the most critical area for growth.
Cybersecurity and ESG: Despite confidence in managing digital threats, over half of the organisations surveyed are lacking robust digital security measures, and 76% are without a comprehensive ESG framework. This highlights an urgent need for improved cybersecurity and sustainability strategies.
5G and infrastructure: 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.
The report also explores regional divergences, noting that Asia Pacific respondents, including those from New Zealand, are less optimistic about overcoming economic headwinds than 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."
For more information or to discuss the findings in detail, contact Nick Valentine at DLA Piper.
DLA Piper is a global law firm providing a wide range of legal services to clients around the world. Our Technology sector group offers comprehensive advice on all aspects of the technology industry, from early-stage financing to regulatory issues and mergers and acquisitions.
