New Zealand firms turn to AI for productivity gains

New Zealand organisations are shifting from AI experimentation to operational deployment in communications and customer engagement, according to Digital Island, which links the change to a push for measurable productivity gains.

The next stage of AI adoption, it argues, will focus less on standalone tools and more on embedding software into the day-to-day workflows of staff handling customer and internal communications.

That view comes as New Zealand businesses face persistent pressure to lift output with limited resources. Digital Island cited MBIE data showing the country's labour productivity is estimated to be up to 40% below many OECD peers, adding urgency to efforts to reduce inefficiency rather than simply increase workloads.

The Auckland-based cloud communications provider said many organisations still rely on a patchwork of legacy phone systems, separate communications products and customer engagement platforms. In its view, that fragmented set-up creates extra manual work for staff and a less consistent experience for customers moving between channels.

Digital Island recently announced a partnership with RingCentral, which it said would help customers modernise communications and customer engagement on a single platform. It is positioning the tie-up as a response to businesses seeking to adopt AI without adding another separate layer of technology.

Workflow focus

Digital Island's case rests on a practical argument about where time is lost. Staff often move between multiple applications, search for previous customer interactions, and write up notes after calls or web chats. Across a working week, those tasks can consume hours.

According to the company, those routines make communications systems one of the clearest areas for AI deployment because software can summarise calls, automate note-taking and present a fuller view of a customer's earlier interactions.

"We're seeing organisations move beyond AI experimentation and ask where they can generate measurable business outcomes," said Leon Sheehan, chief executive officer of Digital Island.

"One of the biggest sources of productivity loss remains fragmented communications and customer engagement systems. However, the biggest opportunity isn't deploying more technology. It's about deploying the right technology that embeds AI into operational workflows and everyday interactions," Sheehan said.

His comments reflect a broader shift in the market as boards and management teams look for evidence that AI spending can improve day-to-day operations. After an initial wave of trials and point solutions, suppliers are now under pressure to show where time savings, service improvements or lower administrative burdens can be measured more directly.

One example, Digital Island said, is a customer service agent taking dozens of calls each day and then spending substantial time recording each interaction. Automated summaries and notes can reduce that administrative load while producing more consistent records.

Another use case is cross-channel customer contact. If a customer begins with web chat and later moves to phone or email, a unified system can present a single history to the employee handling the enquiry, reducing the need for customers to repeat information.

"When AI is integrated into the way employees communicate, collaborate and engage with customers, organisations can improve productivity, enhance service levels and gain insights that support better decision-making, without disrupting how people already work," Sheehan said.

Single platform

Businesses can lower administrative overhead by using AI-generated summaries, notes and follow-up actions, while also improving responsiveness through quicker access to customer histories, Digital Island said. Replacing disconnected tools with one platform can also simplify operations and make AI features easier to introduce into routine work.

RingCentral is a major supplier in unified communications as a service, or UCaaS, a market centred on combining voice, messaging, meetings and contact centre functions in cloud-based products. Digital Island said the platform includes more than 500 prebuilt integrations with business applications, including Salesforce, Microsoft Dynamics 365, HubSpot and Zendesk.

The company also highlighted RingCentral App Connect, which it said allows integration with a wide range of commercial or internally developed customer relationship management systems. That matters for businesses reluctant to replace core software but wanting to connect communications data more closely to sales and service records.

"To help solve this challenge for Kiwi businesses, we sought a world-class solution that could unify communications and customer engagement," said Leon Sheehan, chief executive officer of Digital Island.

"RingCentral is consistently recognised as a global leader in UCaaS and offers one of the industry's most extensive integration ecosystems, with more than 500 prebuilt integrations into business applications. These include leading CRM platforms such as Salesforce, Microsoft Dynamics 365, HubSpot and Zendesk, while RingCentral App Connect enables businesses to integrate RingCentral with virtually any commercial or homegrown CRM, helping eliminate disconnected experiences, streamline workflows and improve productivity," Sheehan said.

Founded in 2004, Digital Island is a New Zealand-owned provider of cloud communications and customer experience products and services. Its portfolio includes cloud collaboration, contact centre, customer experience consulting and telecommunications services for organisations across the country.

Digital Island expects communications and customer engagement platforms to become one of the main routes through which organisations seek a tangible return from AI spending as they move from trials to operational use.