Xero launches AI bootcamp for Kiwi small businesses

Xero has published research on the use of artificial intelligence among New Zealand small and medium-sized businesses and has launched a free AI bootcamp programme with ASB. The study found that concerns about privacy, trust and time are holding back wider adoption.

The survey of 1,081 New Zealand small and medium-sized business customers found that 45% believe AI could be the biggest opportunity since the internet. At the same time, 40% cited data privacy and security concerns as reasons they were not using AI or using it less often, while 37% cited mistrust in the quality of AI outputs.

Use of the technology is already widespread, though often limited in scope. Some 61% of businesses are proactively using AI, but many remain in the early stages of adoption, focusing on specific tasks rather than broader changes to how they operate.

Among those already using AI, 64% said it had helped them save time, with the average saving equivalent to one working day. The research also found that 55% believe AI allows their teams to focus on creative or higher-value work instead of repetitive tasks, while 45% said it helps them make faster decisions.

Job satisfaction and work-life balance also featured in the findings, with 31% saying AI had improved both. Saving time on routine tasks to focus on higher-value work was the biggest motivator for future AI use, cited by 34% of respondents.

Bootcamp launch

To address the barriers identified in the research, Xero has partnered with ASB to offer a 12-week online AI bootcamp for eligible businesses in New Zealand. The programme, delivered by academyEX, is intended to give business owners practical training in using AI tools safely and responsibly.

The study suggests strong demand for that type of support. Nearly half of respondents (47%) said practical training would help them adopt AI, while 46% wanted access to trusted, vetted tools, and 43% wanted real-world case studies.

"Most small and medium-sized businesses aren't questioning whether AI matters. What they're grappling with is how and where to use it safely and confidently, how to move past the early stages of adoption and unlock more meaningful value," said Bridget Snelling, New Zealand Country Manager at Xero.

She said current use often remains superficial. "Our research shows Kiwi businesses are inquisitive about emerging technologies, with almost two-thirds (61%) of businesses already proactively using AI. But this is often only at a surface level. These bootcamps are about moving beyond experimentation."

On the training programme, she added: "Partnering with ASB means we can connect Kiwi businesses with practical learning experiences to upskill themselves. Through a 12-week online program, business owners can learn how to use AI safely and responsibly in ways that genuinely support their business goals."

ASB linked the initiative to a broader productivity agenda for smaller firms. "While there is strong intent from businesses across Aotearoa to grow, many face constraints in turning that into action, particularly when it comes to embedding AI and adopting new technology.

"Through our partnership with Xero, the AI bootcamp helps businesses build confidence to start using AI in practical ways. As part of ASB's broader Pathway to Productivity program, we can connect businesses with the tools, talent and expert support needed to take action, lift productivity and free up valuable time," said Ben Speedy, Executive General Manager of Business Banking at ASB.

Four groups

Xero's research divided small and medium-sized businesses into four groups based on how they view and use AI. Trailblazers account for 15% of businesses and are the most likely to use AI extensively. Explorers make up the largest share at 44% and tend to use AI for selected tasks, reporting meaningful benefits.

Pragmatists represent 15% and are either starting to explore AI or planning to deploy it within the next year, though with caution. Sceptics account for 26% and do not proactively use AI, with low trust, security concerns, and over-reliance shaping their views.

The findings suggest attitudes to AI are not simply divided between users and non-users. Businesses can see potential gains, but many remain concerned about how the technology affects brand identity, customer relationships and risk.

More than half (55%) said they worry that using AI for customer communications will make their brand feel less human and authentic. A similar proportion said businesses have an ethical responsibility to disclose when they use AI to interact with customers.

James Bergin, Executive GM of Technology Research & Advocacy at Xero, said the results showed a broad range of views. "What we're seeing in this research is a wide spectrum of how business owners perceive and use AI technologies."

"The challenge - and the opportunity - is helping more small and medium-sized businesses move from being interested but hesitant to having the confidence to drive practical, trusted use. Because standing still isn't a neutral choice in a highly competitive global economy."

"Ultimately, many believe in the opportunity AI technology promises to unlock, but need more reassurance and education in how to realise the full potential offered by these newer capabilities."

Calls for rules

The research also points to a policy gap. Among businesses already using AI, 79% said they are learning through self-guided experimentation, suggesting many are adopting the tools without formal support or structured guidance.

When asked what role the government should play, 57% said it should set clear regulations and accountability standards, while 55% said it should enforce strong data protection standards. One in three also said the government should provide education and training resources.

Snelling said those responses were clear. "Business owners know what they need from Government to educate and safeguard them as they experiment with and embrace AI tools."

She added: "We're calling on the Government to factor this into its decision-making around the future of Aotearoa New Zealand's economy - delivering clearer and more consistent regulation around AI, stronger data protection standards, and practical education and training tailored to small and medium-sized businesses."

Despite the concerns, the overall direction remains towards greater uptake. Nearly half of businesses (46%) said they expect to increase their use of AI over the next 12 months, with this share rising to 58% among Explorers and 91% among Trailblazers.

"Businesses believe AI can help them - they just want to be confident they're using it in the right way," Snelling said.