MIL Email Publisher (NZ)

Safe passage of merchant shipping and freedom of navigation is more relevant today than at any time since the Second World War, says New Zealand Defence Force Maritime Component Commander, Commodore Shane Arndell.

Commodore Arndell was addressing the participants of Exercise Bell Buoy, a recent 10-day desktop exercise at Devonport Naval Base, involving naval and government representatives from 10 countries.

Exercise Bell Buoy fosters a Maritime Trade Operations capability among members of the Pacific and Indian Oceans Shipping Working Group, where Maritime Trade Operators (MTOs) – usually Navy Reservists – support the freedom of navigation of shipping when domestic and international threats to maritime security occur.

In a contested environment, MTOs could be called upon to provide sailing information, conduct briefings to ship masters and manage high-risk areas at sea, including re-routing of merchant shipping.

World tensions are prompting navies to look at Maritime Trade Operations and Naval Cooperation and Guidance for Shipping (NCAGS) in a new light, Commodore Arndell said.

“The deteriorating strategic environment in the Indo-Pacific, and indeed the world, is requiring us to be more alert of the potential for impacts to our vital shipping links to international markets,” he said.

“If any time was ‘your time’, it is now.”

With 99 per cent of New Zealand’s imports and exports travelling by sea, it has never been more important to ensure sea lanes are secure, Commodore Arndell said.

Countries participating in Ex Bell Buoy were Australia, Canada, Ecuador, France, Philippines, Republic of Korea, Singapore, the United Kingdom and the United States.

The MTO participants exercised a joint response to a scenario involving maritime security threats to merchant shipping in the Indo-Pacific.

Sub Lieutenant Amos Kamo, a Maritime Trade Operations reservist with Auckland-based unit HMNZS Ngapona, says the Middle East conflict has really brought home the importance of their trade.

“Everything that is playing out over there, is everything we have trained for,” he said.

“People have become a lot more interested in what we do, and they can see the relevance of it.

“The real highlight for us is spending time with other countries, getting to know other people and getting a great sense of how they take their military doctrine and effect it. You see a lot of competency and confidence and it’s really cool to absorb it.”

Lead planner for Ex Bell Buoy, Lieutenant Commander Kris Herbison, says he was encouraged by the professionalism and collaborative spirit among the nations attending.

“Bell Buoy reinforces that maritime security is a shared responsibility, and the relationships strengthened here directly enhance the resilience of the wider Indo-Pacific maritime domain.”

Commander Glenn Woolfrey, Royal Canadian Navy, says their attendance underscores Canada’s commitment to strengthen interoperability with partners and grow their readiness to support NCAGS.

Captain Cannon Neslen, U.S. Pacific Fleet NCAGS Director, says the global merchant shipping industry is facing “unprecedented” security challenges.

“It highlights the importance of the MTO teams communicating with key shipping and country stakeholders in understanding the array of commercial and military risks.

“Bell Buoy was very successful in reinforcing understanding of NATO NCAGS doctrine, command and control, and assessing the impact of MTO effects. We look forward to continued partnerships with future exercises.”

When artificial intelligence (AI) comes up in Australian enterprise IT discussions, the focus tends to centre on generative tools, intelligent copilots, and innovation at the edges of the business. However, some of the most concrete and measurable uses of AI are emerging deep in enterprise operational workflows, such as corporate travel management.

According to Jonathan Beeby, managing director, SAP Concur Australia and New Zealand business travel in Australia is gaining real momentum. “SAP Concur data shows that flight bookings in Australia increased almost 10% in 2025 compared to 2024. March 2025 achieved the highest velocity, with corporate bookings surging more than 44% compared to March 2024, reflecting a sharp rebound in corporate travel demand,” he said.

As travel activity continues to accelerate in 2026, Australian organisations are rethinking how travel decisions are controlled and authorised. This shift isn’t just about updating corporate travel policies. It’s about making smarter decisions earlier, moving intelligence upstream of expenditure rather than downstream of it.

Consequently, pre-travel authorisation powered by AI is quietly becoming one of the most pragmatic AI applications in enterprise finance, according to SAP Concur.

Jonathan Beeby, managing director, SAP Concur Australia and New Zealand said, “Travel and expense management is no longer about post audits but preventative control. In traditional travel and expense programs, compliance was largely reactive: employees book trips, later file expenses, and finance teams audit them against policy afterwards. That approach can identify where policy was breached, but it offers little in the way of early prevention, and cost visibility and management.

“In Australia, that shift toward proactive governance is gaining momentum. Business travel surged over the past year as organisations resume commercial travel and business events post-pandemic. Demand for control over discretionary spend is tightening as finance leaders seek earlier visibility, and internal audit teams push for stronger evidence of upfront approval. Modern travellers also expect digital workflows that are intuitive and fast. These combined pressures are driving enterprise adoption of intelligent pre-travel authorisation, where AI and automation inform decisions before bookings are confirmed.”  

Pre-travel authorisation workflows require employees to submit structured trip requests, including rationale, cost estimates, and any policy exceptions. AI and agents are transforming the process.

In contemporary enterprise platforms, AI and agents are being deployed to automatically suggest or pre-fill estimated travel costs based on historical spend patterns; flag out-of-policy items in real time; and tailor approval routing according to risk categories, spend thresholds, and employee profiles.

Jonathan Beeby said, “Intelligent automation interprets context and provides richer guidance at the point of request rather than relying solely on rigid, static business rules. This helps organisations scale governance controls without multiplying manual checks, giving finance teams early insight, and travellers clearer guidance toward compliant choices.

“One of the most compelling benefits of AI-driven travel requests is the quality of data created. Rather than free-text explanations submitted after travel, structured requests capture why the business travel is necessary, anticipated costs, and which manager approved the itinerary and under what conditions. This produces a defensible, machine-readable audit trail that shows approvals, edits, and exceptions over time; a powerful asset as Australian organisations face greater oversight from boards and internal audit functions.”

Solutions such as the Concur Request capability maintain a detailed audit trail showing approvals, changes and exceptions over time and automatically raise flags for review, providing advance spend visibility for Australian finance leaders.

One of the standout advantages of embedding AI in pre-travel authorisation is that it shifts travel data from being a lagging indicator to a leading signal of future expenditure. By consolidating authorised travel commitments ahead of time, finance teams gain a clearer view of upcoming costs long before they hit the general ledger.

This early insight supports better forecasting and proactive budget management, which is particularly valuable in Australia’s geographically dispersed market where aviation and accommodation pricing can vary significantly by region. This proactive intelligence helps CFOs understand emerging travel trends and cost pressures without having to manually wrangle spreadsheets or disparate systems.

Jonathan Beeby said, “The common concern around pre-travel authorisation is the risk of creating process friction that delays routine travel. Smart AI workflows are central to addressing this. They can reduce repetitive data entry and minimise back-and-forth between travellers and approvers, so that low-risk or recurring trips can move quickly through the system, while higher-risk requests trigger additional scrutiny.

“This typically means fewer rejected expense claims for employees, fewer surprises after trips have been taken, and a smoother overall experience; a valuable differentiation in Australia’s increasingly competitive talent market.”  

Pre-travel authorisation is a standout AI example because of its practical utility. This isn’t research code or speculative innovation, it’s an operational capability delivering measurable outcomes including reduced risk, stronger compliance, better data, and faster decisions. Embedding intelligence into day-to-day workflows can demonstrate how AI can be applied sensibly to deliver tangible business value.

As corporate travel continues to rebound, more Australian organisations are recognising that the most impactful place to apply intelligence is before spending is committed, at the moment of intent. AI-driven pre-travel authorisation is emerging as a clear example of how enterprise technology can strengthen governance not by adding layers of control, but by embedding smart decision support where it matters most.

New labour market figures show the job market remains under pressure, with spare capacity staying elevated and wage growth subdued.

The latest Statistics New Zealand data shows the unemployment rate fell slightly to 5.3% from 5.4% in the March quarter. The participation rate fell to 70.4%, while the size of the labour force grew 0.5% compared to the March quarter of 2025. The underutilisation rate, which includes Kiwi who are unemployed or want more work, remained at 13% (12.9% if we look at the decimal points).

Alexandra Turcu, Kiwibank Economist, says there is still an uncomfortable amount of slack in the labour market: “Businesses are understandably cautious in the current environment, and that’s showing up in slower hiring and very limited movement in pay increases.”

Wage growth remains weak

Wage growth remained low in the March quarter, with most pay rises staying in the 1-2% range.

“This is a tough period for both households and businesses. Costs have been rising for several years, and recent fuel pressures have added another layer of strain. Many businesses are facing higher operating costs at the same time households are already feeling stretched.”

“In that environment, there’s limited room for pay increases, even as the cost of living remains high,” says Turcu.

Underemployment remains elevated

Underutilisation remains high, driven by a mix of unemployment and underemployment.

“When people hear ‘underemployment’, they often think it means a lack of hours, but that’s not always the case. Many underemployed workers are working close to full-time hours.”

“The difference is not how long people are working, but how much they’re earning. That’s why so many working New Zealanders are still looking for more or better-paid work, even though they’re already employed.”

Productivity continues to lag

Data continues to show New Zealand lags other developed economies on productivity, measured by how much value is produced for each hour worked.

“Productivity matters because it’s what ultimately supports income growth over time. If more people are concentrated in lower-paid roles, it limits how much wages can lift across the economy, even when people are employed.”

Turcu says that while this labour market data itself is unlikely to influence the next Reserve Bank decision, it continues to shape the inflation outlook: “With demand already weak, higher prices are unlikely to translate into stronger wage growth. The economy is slowing on its own, which means there is little justification for pushing interest rates higher right now.”

Kiwibank economists expect labour market conditions to remain soft in the near term, with unemployment and underutilisation staying elevated as the economy continues to adjust.

“This period is tough, but it isn’t permanent. When price pressures ease the economy will be able to rebuild. Stronger productivity and better-paying jobs are what ultimately lift incomes in the labour market. The levers that will give this momentum is long-term stability and growth in business confidence,” Turcu concludes.

About Kiwibank

Kiwibank is a Purpose-led organisation that has modern, Kiwi values at heart and keeps Kiwi money where it belongs – right here in New Zealand. As a Kiwi bank, with more than a million customers, our trusted experts are focused on supporting Kiwi with their home ownership aspirations and backing local business ambitions, so together we can thrive here in Aotearoa and on the world stage. Kiwibank is the #1 bank in Kantar’s 2024 Corporate Reputation Index and the only bank in the top 15. To find out more about Kiwibank visit www.kiwibank.co.nz.

New Zealand's biggest artificial intelligence (AI) industry group says although more of us are using AI every day, trust is not keeping pace with uptake.

The AI Forum New Zealand today published its AI Blueprint for New Zealand1, a significant update on the previous version from 2024.  The work included a review of 28 separate reports which showed AI adoption rates ranging from 40 to 80 percent, depending on survey methodology.  It found corporate and information workers are adopting AI at high rates, while broader population uptake is lower, especially compared to global measures.

“On the surface, this can make the national picture look contradictory. But a closer look shows a consistent story emerging,” says Forum Executive Director Madeline Newman.

“Many New Zealanders now encounter AI in their daily lives, and a growing number are using it at work in practical ways, particularly for routine tasks and information processing.  More intensive or deeply integrated use remains less common, but it is increasing.  Importantly, across almost all studies, individuals and organisations consistently report positive productivity gains including time savings and efficiency gains, even where overall use is still relatively light or informal.

“However, trust has not kept pace with uptake.  Concerns about privacy, security, IP, bias, job impacts, and transparency are persistent, including among people who already use AI tools.  In this sense, New Zealand sits in an uncomfortable position: high-use but low-trust.”

AI Forum Chair Dr Mahsa McCauley says the data suggest the next phase of AI adoption won't be determined by access to technology alone.  It will be shaped by how well organisations, government, and society address trust, skills, and governance alongside continued use.

The Forum's vision is for Aotearoa, by 2030, to be a global leader for innovative, responsible and inclusive AI, and to be globally recognised for harnessing the power of AI for the benefit of all New Zealanders.

McCauley says that to help realise this vision, the Forum is already responding to the Blueprint's findings.

Building on its AI in Action productivity research series from 2024/2025, the Forum plans to combine its own independent research with an industry-wide review of existing reports and questionnaires from major generative AI providers.

“Our intention is to provide an uncluttered source of truth on AI adoption and use in Aotearoa.  We're also forming a new, dedicated workstream addressing social licence.

“Planning for 2030 also means looking beyond AI in isolation and preparing for the next wave.  We need to consider how it intersects with other rapidly advancing technologies, particularly quantum, molecular biology and robotics, and what this convergence means for Aotearoa.”

Newman says that outside of the banking sector, many organisations are unprepared for this shift.

“It's a gap we can't afford to leave unfilled.  It's why post-quantum readiness is an area that the AI Forum will investigate in 2026 in collaboration with Tech New Zealand's communities.”
 
1Link: https://aiforum.org.nz/wp-content/uploads/2026/05/NZT009-AI_Blueprint_Report-v05.pdf

About the AI Forum New Zealand | Te Kāhui Atamai Iahiko o Aotearoa
The AI Forum New Zealand is the country's leading voice for artificial intelligence, bringing together more than 280 members from industry, academia, government, and civil society to shape our AI future. Founded in 2017, the Forum is one of the largest of the 16 communities that make up Tech New Zealand.
Each year the Forum runs dozens of events – including the AI Summit, the AI in Creative Industries Summit, and the nationwide AI Hackathon Festival – makes submissions to government and international agencies, and publishes research reports on AI's impact on productivity.