Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

New Zealand’s boardrooms are split on the outlook for projected staff numbers, with the Mood of the Boardroom survey revealing a near three-way divide over whether headcount will increase, remain steady or decrease in the year ahead.

Asked if they expect to make changes to staff numbers over the next 12 months, 30% of respondents say they anticipate increasing staff numbers, while 33% expect to cut back. A further 35% forecast no change, with the remaining 2% unsure.

The mixed sentiment underscores a business environment where leaders are juggling cost pressures, technological disruption, and the demands of growth.

One executive in the tourism industry was blunt: “We have and continue to reduce staff numbers as we take costs out.”

A logistics boss notes, “We are rolling off a period of intense capital project delivery.”

Technology is a recurring theme in workforce projection. Several CEOs pointed to automation and AI reshaping the size and shape of their workforce.

“Technology advancements could well result in fewer jobs in some areas (corporate), whereas as assets and the balance sheet grows, and there is more development and construction going on, the workforce is likely to increase,” says one experienced chairperson.

Others spoke of balancing efficiency with future capability.

“We’ll continue to adjust resources to match demand and ensure the business stays efficient — focusing on keeping essential roles while scaling back where necessary,” says Anne Gaze, of Campus Link Foundation.

Some businesses remain in contraction mode. The CEO of an engineering firm says: “Due to the industry slowdown, our business has had to make difficult decisions around staff right-sizing … Looking forward, it is more about focusing on what skills and capabilities are required in the future.”

There are also generational concerns.

“We have dropped significantly in the last two years but hope to be able to start recruiting graduates again, subject to projects progressing in the economy,” one executive in the construction sector says, warning younger staff have been “hit the hardest” as clients resist paying for inexperienced talent.

For others, their infrastructure pipeline is expected to drive demand: “The significant infrastructure development programme underway will continue to gain momentum in the year ahead and associated staffing growth will reflect that,” says Auckland Airport chief executive Carrie Hurihanganui.

Mixed opinion on access to skilled talent
Business leaders are mixed on whether attracting and retaining skilled talent has become easier or harder in the last year, but the overall sentiment leans toward it being a moderately challenging issue.

On a scale of 1 to 5, where 1 equals very difficult and 5 equals very easy, the average score was 2.95/5.

For some, access to skilled labour has eased in the past year, with a softer economy and higher unemployment increasing the pool of available candidates.

Several note they are receiving record numbers of applications, describing the current climate as an “employer’s market”.

Executive director of the Retirement Villages Association, Michelle Palmer, says: “We’ve seen a huge number of applications for roles in the past six months — unprecedented numbers — a sign of the times in the current unemployment environment.”

An education provider observes that “redundancies have released a lot of competent people into the market”, but says retaining top performers remains difficult.

Yet many stress that the challenge is far from solved, particularly in specialised fields.

Advanced technology, R&D, digital, AI, engineering, and data analytics are all cited as areas where skills are scarce.

The lure of higher wages in Australia and beyond features prominently, with multiple executives highlighting a “flight to Australia” across professions including law, health, and infrastructure.

One leader describes it as “alarming”, while another says young lawyers are now departing earlier in their careers than ever before.

Cordis managing director Craig Bonnor adds that “talent retention of Kiwis in the early to mid-career phase is the most challenging”.

At the same time, pressure is coming from within New Zealand. Downer NZ chief executive Murray Robertson warns that “the entry of international firms into the New Zealand market for major projects is placing additional pressure on local businesses to retain key talent.”
Pipeline certainty in infrastructure also looms large. An engineering leader cautions that “without certainty in the pipeline, we won’t attract the skilled workforce required”.

Regional differences are also apparent. Institute of Directors CEO Kirsten (KP) Patterson says Wellington is increasingly at risk of losing its brightest talent, “as they are losing confidence that they can successfully raise careers and families in a vibrant capital city”.

Immigration settings drew mixed views. Some report improvements under the current government, making it easier to recruit nurses and caregivers, while others say changes had done little to ease shortages in critical, high-demand sectors.

As one technology leader puts it: “For AI skills, things are very, very difficult. But for other roles, it is typically not a concern.”

While New Zealand’s lifestyle and reputation for innovation continue to draw talent, executives stress that retention depends on competitive pay, career development, and building purpose-driven organisations.

As Harcourts managing director Bryan Thomson sums up: “The business world relies on talent acquisition and retention.

“Now as always, this is the number one challenge for every leader.”

New NZIBF director outlines exporters’ response to tariffs

New NZIBF director outlines exporters’ response to tariffs

The New Zealand International Business Forum (NZIBF) has entered a new chapter of leadership, with Felicity Roxburgh stepping in as executive director at a time of heightened geopolitical uncertainty.

Roxburgh brings almost 20 years’ experience in trade and foreign policy. She has served in senior roles at the Ministry of Foreign Affairs and Trade, with postings in Hong Kong, New York and in the Pacific. Most recently, she was New Zealand’s Consul-General in New Caledonia, and before that led the business programme at the Asia New Zealand Foundation. She succeeds Stephen Jacobi who helped establish NZIBF in 2007.
Roxburgh had little time to ease into the role. Just weeks after joining the Forum she was fronting 15 media interviews on the United States’ sudden 15% tariff on New Zealand goods.

“There is a large appetite to understand what is happening in clear, simple terms and the impact on our exporters,” she says. “People knew the tariffs were going to impact us, but they didn’t know how or why.”

One of her top priorities is ensuring the fast-moving responses of business are better understood.

“Companies are responding to tariffs, supply chain disruption and investment uncertainty in real time”. Whether through scenario planning, diversifying into new markets or passing on costs to importers and consumers, she says these real-time adjustments are often invisible in high-level policy discussions, yet they are vital for resilience and competitiveness.

She is also focused on the future of New Zealand’s free trade agenda. Roxburgh points out that while New Zealand benefits from a dense “elaborate spaghetti network of free trade agreements”, gaps remain. “India and the US are the big missing pieces,” she says, noting that the government is putting huge investment into growing the India relationship and negotiating an FTA.

“At the same time, behind-the-border barriers — non-tariff costs — hit our exporters up to $10 billion a year. It’s a huge challenge.”

She also sees real opportunity in major trade blocs deepening collaboration. “If the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union were to do something together — and with us being a member of the CPTPP — it would be around 30% of the global trade. That’s one to watch.”

For Roxburgh, NZIBF’s role in the current climate is clear: to amplify exporters’ experience and work with the Government to push forward on market access.

“What does a business response look like to geopolitical uncertainty? Scenario planning, diversification, pricing changes, working with partners. These are practical steps companies are taking, and that’s the story we need to tell.”

ICBC NZ CEO Bin Liu sees exciting opportunities to finance New Zealand’s infrastructure transformation, writes Tim McCready

ICBC NZ CEO Bin Liu sees exciting opportunities to finance New Zealand’s infrastructure transformation, writes Tim McCready

New Zealand is entering a critical new phase of infrastructure development. Decades of underinvestment, rapid urban growth, and the increasing impacts of climate change have converged to create both a challenge and an opportunity.

ICBC New Zealand, a subsidiary of the world’s largest bank by total assets and capital, sees compelling potential for Chinese capital to support this transformation. With more than 11 years of local operations, the bank draws on global experience and deep funding capability to deliver tailored, ESG-aligned financing solutions for New Zealand.

Speaking at the recent China Business Summit in Auckland, Bin Liu, CEO of ICBC New Zealand reflected on the state of the market.

“I have three key takeaways from the past year,” he said. “First, we are finally seeing more infrastructure projects moving — and at a bigger scale than before.

Agribusiness and Trade: Drones transform NZ farms from above

Agribusiness and Trade: Drones transform NZ farms from above

  • Drone use is growing in NZ, with around 60 members now in the Agricultural Drone Association.
  • Drones fill a practical niche between ground-based equipment and helicopters.
  • The association is working with the Civil Aviation Authority to improve the certification process.

This year’s Fieldays included a new addition that drew steady crowds – the Fieldays Drone Zone. Run in partnership with the Agricultural Drone Association, it offered many their first look at how drones are revolutionising farm management practices, including spraying and targeted fertiliser spreading.

“The Drone Zone was incredibly popular – we had nine people on site and we needed all of them,” says Craig Simpson, president of the Agricultural Drone Association and founder of Aerolab, New Zealand’s largest supplier of commercial agricultural drones.

“A lot of people don’t know that drones are an option,” says Simpson. “Seeing one flying, they quickly realise they are big machines that can carry a significant spray pack, and gain a better understanding of how they work.”

The use of drones is reshaping how work gets done on New Zealand farms, with significant growth over the last few years. There are now hundreds of large agricultural drones operating across the country – up from around 20 or 30 three years ago. Simpson says Aerolab’s sales have doubled in the past year alone.

“Ag drones have been in the background for a couple of years,” he says. “But we have recently hit a sweet spot where they are able to carry enough liquid and fly long enough to make them genuinely effective. That’s when the market really took off.”

Drones fill a practical niche between ground-based equipment and helicopters, and their rise is changing how agricultural contractors operate. They can open up access to land that might previously have been too steep or too wet for traditional agricultural machinery, or that require immediate attention and more precision.

“If you’ve got 100 hectares to do, a helicopter is always going to be the best choice,” he says. “And if you’ve got lots of ground, it is dry, not steep, and you have got plenty of room to move vehicles, then a tractor or a truck is going to be better.

New Zealand’s geography makes drones particularly well-suited.

“We farm intensively and make the most out of small holdings,” says Simpson. “We’ve got a lot of arable land but not a huge amount of it is flat. Even with beef and sheep, we run stock on quite steep country. A drone is a real nice fit.”

This is opening up new possibilities. “Some farmers never dealt with gorse on steep blocks because the only option was spraying with a backpack. A helicopter wasn’t economical. Now a drone contractor can do the job at a reasonable rate.”

Urgency has also become a significant factor in the technology’s uptake. Simpson points to Wairarapa, which has had to deal with heavy rain this year.

“There is a point at which you can’t use a vehicle. In the past you might ring a helicopter provider and be told there is a four-week wait. Meanwhile, the fungus gets a foothold.

“A drone provider might be the same price, but they can be there the next day. You can deal with the problem faster and ultimately use less chemicals.”

Safety is another driver of demand.

“Why drive a quad bike or a vehicle across a steep hillside when you can instead fly over it with a drone and keep everyone safe?” says Simpson.

Given the compliance requirements, most agricultural drone users aren’t farmers themselves, but agricultural contractors.

“Since an ag drone is over 25 kilos, you need a certificate with the Civil Aviation Authority (CAA),” says Simpson. “You’re also required to deal with the Environmental Protection Authority for chemicals, WorkSafe for health and safety, as well as local councils for regulations – that’s a lot for one person in a ute with a drone.”

The Agricultural Drone Association has grown to around 60 members – even more since Fieldays – and will play a crucial role in advocating for New Zealand’s agricultural drone operators and enhancing skills and knowledge within the industry.

“The association is aimed at drone users,” says Simpson. “They needed a community, and it means that we can speak to regulators with a collective voice.”

He says the CAA has been a constructive partner. Certification wait times have fallen from 18 months to about eight.

“That is a real improvement – but it is still a barrier. If the industry keeps growing, that bottleneck could get worse.

“We’d like to see the regulator continue working closely with industry so we can maintain momentum. This is a great farming technology, and it’s important we don’t let red tape slow down its potential.”

Simpson says that with their speed, precision, and ability to tackle challenging terrain, agricultural drones are on their way to becoming a familiar sight on New Zealand farms – not just a novelty attraction at Fieldays.

Agribusiness and Trade: Sustainable food innovator seeks inspiration from NZ

Ray Poh from one of Singapore’s leading vertical farms talks with Tim McCready about what he can learn from New Zealand’s agriculture sector.

Artisan Green, founded in 2018 by Ray Poh, is a high-tech, indoor farm that uses stacked growing systems, precision automation and plant science to produce pesticide-free leafy greens in the densely populated city-state.

Poh didn’t start out in agriculture. After years working in the casino industry in Macau, he returned to Singapore looking for a new challenge that was meaningful and sustainable.

That led him to vertical farming, a sector combining climate-controlled growing environments with data and automation. With no prior experience, he began experimenting on a small indoor site with practical knowledge gained through site visits and workshops in Japan and Australia, and volunteering at other farms.

Now, Artisan Green is the country’s top producer of baby spinach as well as other leafy greens and herbs.

In land-scarce Singapore, space is precious. But so is food security.

Singapore imports more than 90% of what it eats, however, as part of its “30 by 30″ goal to produce 30% of its nutritional needs locally by 2030, the Government tenders parcels of land for agriculture. Artisan Green won its plot by demonstrating the commercial viability and technical sophistication of its operation.

From its original 300 square metre facility, the company is preparing to move into a new two-hectare site in Singapore’s designated agriculture zone. The expansion includes a 5500sq m vertical farm, along with significant outdoor greenhouse space and a 4000sq m facility to support post-harvest operations.

This will lift production from one tonne a month to 30 tonnes per month in the initial phase. The second phase will see this increase to 90 tonnes per month.

Poh says the larger scale will allow Artisan Green to bring prices down and make the locally grown produce more competitive.

“Our aim is to price between overseas imports and imported organic produce,” he says. “People support us even though we’re more expensive than imports because we’re local, and our customers – especially younger families – want to avoid exposing their children to pesticides.”

In partnership with Siemens, Artisan Green has digitised its crop recipes: water and nutrient profiles, lighting cycles and temperature settings, allowing consistent yields without relying on a large team of plant scientists.

“We encapsulate the entire growing cycle into our recipes,” he says, “which means that anyone using this platform in the future will not have to be a plant scientist to operate it.”

Poh explains that the intellectual property developed will help make future expansion easier. With the science centralised and scalable, Artisan Green can replicate its model overseas using local workers, without having to bring in expensive technical talent.

He likens it to McDonald’s. “You don’t have chefs in McDonald’s. You just need operators, while all the R&D is done in the central kitchen.”

Poh was in New Zealand last month as part of the Asia New Zealand Foundation’s ASEAN Young Business Leaders Initiative programme.

The delegation of 11 agribusiness entrepreneurs visited businesses around the country and attended Fieldays to learn about New Zealand’s agricultural sector, build local connections, and explore future business opportunities.

Poh says that for a city-based grower like him, seeing how New Zealand brings together science, industry and government in the agribusiness sector has been eye-opening.

“Agriculture is in New Zealand’s blood,” he says. “It’s not just individual farmers doing their own thing, you can see how industry and government work together to advance the sector.”

He points to New Zealand’s plant science research and downstream operations, including packhouses, marketing, and distribution networks, as areas that Singapore still needs to develop.

Too often, he says, small farms in Singapore fail not because they can’t grow food, but because they can’t get it to customers efficiently. It’s one reason why Poh started his own distribution company, which now handles produce from other local farms as well.

There are lessons New Zealand might take from Singapore too, particularly the value of investing in science to develop high-value crops that can command a premium.

“We can’t grow things like baby spinach outdoors in Singapore. It’s too hot. So we grow it indoors. But to make that work, you need margins, and you need to grow something premium,” Poh says.

And you need to know your science.

“A lot of people think AI or automation is going to revolutionise agriculture. But you can’t eat software,” he says.

“So you need to know your basics in plant science first, then automate from there.”

Poh sees both countries as coming at the same problem from different angles. New Zealand has deep-rooted farming knowledge and strong science institutions. Singapore brings innovation in urban food production.

If the future of food is global, then the best ideas will likely grow in both places.

China Business Summit 2025: Nick Mowbray and Zuru

Nick Mowbray took us inside the “Just in Time” building revolution that Zuru Tech has sparked to disrupt the manufacture of homes and commercial buildings for international markets. Zuru Tech’s flagship product, DreamCatcher, is the world’s first BIM software directly connected to automated production systems, enabling users to design, price, and manufacture buildings with unprecedented efficiency and precision.

It’s the latest chapter in the Zuru story, which began over two decades ago in Guangzhou with a toy company founded by the Mowbray siblings, now a global powerhouse in innovation and scale.

Moderator: Tim McCready, Summit MC

—
The 2025 China Business Summit was held on 18 July 2025 at Cordis, Auckland.
Brought to you by NZ INC. and Auckland Business Chamber.

 

AI levelling the investment field

Artificial intelligence is fast becoming one of the most powerful forces reshaping global finance.

At the annual Asian Financial Forum held earlier this year in Hong Kong, leading industry voices painted a picture of a very near financial future driven by artificial intelligence (AI), where algorithms are rapidly surpassing humans not just in speed, but in the capacity to analyse, synthesise and act on data.

“Generative AI is the single most disruptive technology that we have ever experienced in human history,” said Sinovation Ventures chair and AI expert Dr Kai-Fu Lee.

“We now have AI thinking better and faster than people most of the time for most tasks.”

Lee argued that this shift is not limited to trading desks or research teams, but that every department in a financial firm should be incorporating AI tools.

He pointed out that the number-centric nature of finance makes it especially conducive to fast, scalable deployment of AI.

“You can’t use AI to make a car instantly, but in the financial industry you are not shipping physical goods, you’re dealing with numbers.”

Lee, formerly the head of Google China, isn’t talking about a hypothetical future.

He cited an AI-enhanced market index fund backed by his venture capital (VC) firm, which allows only AI to buy and sell stocks – humans are excluded from the process entirely. He said the fund outperforms the market index by around 30% each year.

High-Flyer Capital Management, a Chinese hedge fund founded in 2016, gained attention for using machine learning to identify mispriced stocks and time trades.

Its funds have returned 151% in total (or around 13% annualised) since 2017 – a standout performance amid a volatile China market. Regulatory changes in 2024 forced the closure of its market-neutral funds, but High-Flyer’s successes continue to influence a new wave of AI-led investment innovation.

Lee described the global AI race as a tale of two superpowers: the US, leading on groundbreaking research through its culture of innovation and strength in fundamental science, and China, excelling in the practical implementation of user-facing applications.

“WeChat is better than WhatsApp. TikTok is better than Instagram,” he noted. “Chinese teams have figured out how to find product–market fit globally.”

China’s fintech firms, in particular, have been early adopters of large language model (LLMs) like DeepSeek, which received attention earlier this year for claiming performance comparable to OpenAI’s GPT-4 at a significantly lower training cost.

Lee’s message to a room full of finance professionals was direct: if your firm is not integrating AI into research, trading and operations today, it is already falling behind.

“AI should be doing most of the writing. AI should be doing most of the reading. I use AI to read all my news … to ask what the top news are today, or what are three stocks I should buy or sell,” he said.

AI removes one of the most common pitfalls for investors: emotion. Tools now allow for real-time sentiment tracking and automated triggers based on logic and data.

But not every role will disappear. Lee sees long-term investing, M&A (mergers and acquisitions) and relationship-based advice remaining human-led. What’s at risk are roles driven by short-term analysis and repeatable decision-making.

“Computer trading replaced floor traders. AI trading will replace a lot of traders today,” he says.

“So now would be a good time for people in the financial industry to upgrade their skills. Otherwise, their job will simply be replaced.”

He suggested financial services firms consider appointing a chief AI officer: someone who understands the technology deeply and can lead transformation across departments, from legal and HR to asset management.

Democratising financial access
AI has already been embedded across the capital markets landscape, with large and small financial institutions using AI not just to assist human analysts, but to automate decision-making at scale. It is powering everything from trade execution and risk modelling to real-time sentiment tracking, portfolio optimisation and fraud detection.

But Lee says this is only just the beginning.

Until recently, building sophisticated AI models required hundreds of millions of dollars in computing power. Now, models are being trained for a fraction of that cost, enabling a much broader range of financial firms to implement AI technologies.

“AI will be made available to everyone – the world will be able to build applications on top,” said Lee.

For everyday investors, this level of access may prove to be one of the most transformative aspects of AI in finance. Previously, obtaining high-quality investment advice and in-depth data analysis meant relying on costly human advisers or institutional-grade tools that were beyond the reach of most individuals.

With AI-powered market analysis assistants emerging to bridge that gap, users will be able to query the markets in plain language, analyse stock trends in real time and receive suggestions tailored to their investment preferences.

Ultimately, it is expected that these assistants will offer tailored guidance to an individual’s specific profile, factoring in things like risk tolerance and income level, but also personal values and unique financial goals.

In some markets, AI regulators have already approved AI platforms for public use. But as these tools begin offering recommendations that resemble traditional financial advice, they raise important regulatory questions around licensing, disclosure, complaint processes and duty-of-care obligations.

Financial regulators around the world are looking at how to address these issues. With the right policy and regulatory frameworks in place, AI could help democratise investing, making smart, data-driven decisions accessible to all, not just the already wealthy.

– Tim McCready was a guest of the Asian Financial Forum

 

Capital Markets: WNT Ventures launches fourth fund, targets deep tech growth (NZ Herald)

Capital Markets: WNT Ventures launches fourth fund, targets deep tech growth (NZ Herald)

WNT Ventures has become one of New Zealand’s most enduring early-stage deep-tech investors.

Ten years since its launch, the firm has begun deploying capital from its fourth fund, a rare milestone in New Zealand’s venture capital (VC) landscape.

“We’re very excited about our fourth fund,” says Maria Jose Alvarez, WNT Ventures’ managing partner. “Only two other funds are at a fourth vintage or more – Movac and Icehouse. That puts us among the few who’ve seen the full life cycle of a fund.”

WNT’s track record backs that longevity. Its first fund delivered a net annual return of around 20%, with all investor capital returned and more upside expected. Fund 2 is tracking even higher at 25%. Launched last month, WNT’s latest fund is targeting $35-$40 million, building on its commitment to backing early-stage deep tech ventures. Its bigger size will allow for larger investments and more meaningful follow-on support.

“Looking back at our first fund, our very first investment was $150k into a company. At the time, it was a big deal – it helped them go from a benchtop lab to something slightly larger,” Alvarez says. “Today, our typical investment is between $1.2 million and $1.5 million; $150k just doesn’t move the needle anymore.”

Alvarez notes that while New Zealand start-ups have traditionally been capital-efficient, WNT is now better positioned to provide meaningful backing at an early stage and to double down on the companies that are performing strongly, with follow-on investment. The increased capital also allows WNT to more consistently support capital-intensive phases, such as pilot plants or prototyping, often critical for commercialising scientific IP.

Experience through cycles
WNT’s decade of activity means it has seen the market at both its peaks and troughs. That context is proving valuable in the current economic climate.

“We’ve lived through economic hardship before,” Alvarez says. “What matters now is helping our founders navigate it – encouraging capital discipline and building businesses that can withstand pressure.”

That discipline has earned WNT lasting credibility with its investors.

“We’ve been consistently returning capital for seven years, regardless of the economy,” says Alvarez. “But now more than ever, founders need to understand what’s expected. If you’re raising capital, you need to hit your milestones – otherwise the whole system comes under pressure.”

Strategic focus and trends
WNT remains broadly generalist in its tech investments, though Alvarez says the fund has clear boundaries.

“We avoid drug development, basic diagnostics and now – given the hype – the benchmark for AI [artificial intelligence] investment is much higher,” she says. “That said, we’ve backed companies with core AI capabilities before, in 2019 and 2021, because they were ahead of the curve.”

Alvarez sees waves of innovation shaping New Zealand’s start-up ecosystem. “A few years ago, everyone seemed to be working on sensors. Now the big focus is decarbonisation: things like biomanufacturing, precision fermentation, synthetic biology and manufacturing.”

These sectors are addressing urgent commercial challenges, including supply chain resilience and cost efficiency, while also delivering major emissions-reduction potential.

But Alvarez cautions against chasing buzzwords. “Last year there was hype around climate. Now, ‘climate tech’ is thrown around left, right and centre. But climate as a label will only get you so far. You still need to solve a real problem.”

WNT’s new fund has already made its first investment, into Captivate Technologies, which develops carbon-capture technology.

“The company already has a lot of commercial and pilot agreements in place, which for early stage deep tech is quite rare. So we were really excited about seeing the clarity in the value proposition.”

She says WNT is particularly interested in companies operating in overlooked but essential sectors.

“I like some of the innovation we’re seeing in ‘boring’ areas like instrumentation and manufacturing. These are consistent sectors with real, persistent pain points, which are always sought after, regardless of economic conditions.”

Although not actively investing in AI, Alvarez says the technology has become a critical internal tool for both founders and investors.

“It’s always in the background, helping assess competitors, test positioning, identify market opportunities. When used well, it sharpens thinking across the board.”

Attracting better talent
While capital is critical, Alvarez says talent remains one of the biggest constraints to growth.

“The main problem isn’t building companies, it’s having the talent to support and scale them. Recruiting experienced technical teams and seasoned management is becoming increasingly difficult.”

This is where she sees an opportunity for the Government to step up. “It’s great to see initiatives like the Active Investor Plus visa – that has been outstanding for us in terms of attracting capital and global connections,” Alvarez says.

“Our third fund launched during Covid, so we didn’t raise offshore at the time. But since then we’ve built strong relationships in the US, Germany, and Hong Kong. These markets have proven to be really valuable for us.”

But Alvarez says more could be done to make New Zealand’s innovation ecosystem sustainable.

“We need a more integrated approach, starting from early education and continuing through university and PhD pathways. At the same time, we also need to support entrepreneurs who might not fit the traditional VC model,” she says.

As WNT enters its second decade, Alvarez says the firm’s focus remains unchanged: finding the right team, working on the right problem, at the right time.

“New Zealand has all the ingredients to build globally competitive deep-tech companies,” she says. “With aligned capital, talent, and support, we can go from clever ideas to real, scalable impact.”

Capital Markets: Putting up the guardrails: the need for accountability (NZ Herald)

Putting up the guardrails: the need for accountability

Tim McCready

Artificial intelligence is rapidly re-shaping the future of finance, and New Zealand’s regulators are taking notice.

With its potential to cut costs, boost efficiency, and spark innovation, AI is increasingly critical to the financial services sector.

The New Zealand Financial Markets Authority (FMA) is making it clear it encourages innovation and believes New Zealanders should have access to the same technological advancements as those in other countries. At the same time, it wants to help facilitate the responsible adoption of AI, working with firms to ensure they have the appropriate oversight to mitigate risks and provide quality service to customers.

“The FMA recognises the transformative potential of AI in finance, and our focus will always be to ensure that adoption is safe and ultimately benefits both consumers and markets”, says FMA’s executive director of strategy and design, Daniel Trinder.

The FMA’s latest research on AI, released last year, shows the New Zealand financial services sector is rapidly gearing up for an AI-powered future. Thirteen firms responded to the FMA’s survey, with representatives across asset management, banking, financial advice, and insurance.

The findings show a clear consensus: AI is a pivotal technology with enormous promise. All respondents said they have either integrated generative AI into their operations or plan to do so soon, driven by a desire for better customer outcomes, improved operational efficiency, and enhanced fraud detection. But companies are still cautious. Firms are taking a measured, risk-assessment-driven approach to deployment, with a strong emphasis on responsible and controlled deployment.

From the FMA’s perspective, there are three categories of risk for industry and regulators to consider – market manipulation, systemic risk, and consumer protection and ethical concerns.

There is concern about AI amplifying herding behaviour, which could increase correlations across markets and make them more susceptible to sudden shocks. Poorly tuned models trained on biased or incomplete data can also pose real dangers, delivering flawed predictions and skewing decision-making. And with AI tools becoming widely embedded and complex, there is an increased exposure to sophisticated cyber threats.

One of the most significant threats is AI-generated fraud. The use of generative AI to create fake content or impersonate individuals (known as “deepfakes”) is a real concern in New Zealand. A recent example saw an AI-generated video of Prime Minister Christopher Luxon circulated as part of a scam targeting pensioners.

To date, the FMA has not opted to introduce standalone AI regulation. Instead, it is relying on existing legal frameworks, while signaling that governance and accountability will be the core expectations placed on financial services firms.

Trinder spoke on this topic at the annual EU-Asia Pacific Forum on Financial Regulation in Vietnam earlier this year.

“Clarifying our expectations will permit greater adoption of AI and other emerging technologies, but also in a way that minimises risks,” he said.

“This would help ensure good governance which is paramount for safe AI adoption. Governance is not a panacea on its own, but without good governance arrangements that keep pace with the application of AI, the risks increase substantially.”

What’s clear is that boards and senior management of financial institutions won’t be able to delegate their AI responsibilities.

Trinder says there is a requirement for accountability across the entire AI lifecycle, including possibly specifying the role of human intervention to minimise harmful outcomes from the adoption of AI.

The FMA is collaborating with industry on guardrails for AI-generated financial advice and tools. It has conducted an industry round table to discuss the current and future applications of AI in financial services with key market players.

The challenge will be to unlock the benefits of AI while ensuring New Zealanders remain protected.

As the technology develops, so too will the expectations around risk, disclosure, and accountability.

That balancing act is only just getting started.

Hong Kong & Investment conversation with Anna Thomas, Summer Times (RNZ)

Listen here

I enjoyed joining Anna Thomas on RNZ’s Summer Times show this morning to chat about my recent visit to Hong Kong for the Asian Financial Forum (AFF). Our discussion covered:

📈Cautious optimism in the financial sector: Despite the uncertainty looming over markets caused by the Trump administration, there’s a prevailing sense of confidence in global markets.

🌏Markets to watch: Southeast Asia and the Middle East stood out at the Forum as hotspots for growth and investment opportunities.

🤖AI’s impact on finance: Artificial intelligence is transforming the financial sector, from predicting trends and outperforming humans, to making financial services more accessible to everyday investors.

🛍️Changing shopping trends: Many Hong Kong locals now head to mainland China for shopping, dining and even dental work – thanks to the convenience of high-speed trains and the allure of lower prices and wider options across the border.

🦢The (non-work) highlight: Of course: food! Including a comparison of budget vs. high-end roast goose. (Spoiler: the budget spot came out on top!)