New Zealand’s small businesses are set to receive stronger AI-powered support as the Government announces new funding to help business owners unlock growth opportunities, improve efficiency, and access smarter decision-making tools.
Minister for Small Business and Manufacturing Cameron Brewer announced the funding as part of the Government’s effort to give small businesses practical support that can help them grow, compete, and succeed. The initiative focuses on making modern digital tools more accessible to smaller firms, allowing them to benefit from data-driven insights that are often more readily available to larger companies.
Small businesses play a major role in New Zealand’s economy. The country has around 600,000 small businesses, representing 97 per cent of all Kiwi companies and employing about 680,000 people. By investing in AI-powered business support, the Government aims to strengthen this important part of the economy and help more firms identify new pathways for growth.
The funding will support two key initiatives. Business South will receive support to expand its AcceleratorNZ programme to an additional 500 businesses, while Business Mentors New Zealand will use the funding to develop and roll out AI tools that improve the support provided by its mentors.
AcceleratorNZ uses artificial intelligence to analyse a business’s own data and identify its strongest growth opportunities. The programme then provides the business owner with a practical action plan that can be used immediately. This approach is designed to help small firms better understand their operations, make informed decisions, and focus on areas with the greatest potential for improvement.
The programme has already supported more than 100 businesses and has demonstrated its value as a practical diagnostic tool. With the new Government funding, more than 500 additional businesses are expected to benefit from AI-powered diagnostics over the next year. This expansion will help more small business owners access insights that can support planning, productivity, and long-term growth.
Business Mentors New Zealand, which connects around 1,500 small and medium-sized businesses each year with experienced mentors, will also receive support through the funding. The organisation will develop its AI Digital Mentor tool to better match mentors with the businesses that need their expertise.
The AI Digital Mentor tool is intended to strengthen, rather than replace, human mentoring. By improving the way businesses are matched with mentors, the tool can help ensure that business owners receive more relevant guidance and support. This keeps the personal connection at the centre of mentoring while using technology to make the service more effective.
The initiative reflects the Government’s wider focus on helping small businesses adopt digital tools that can improve performance. AI can support businesses by identifying patterns, highlighting opportunities, reducing inefficiencies, and helping owners make better use of their existing data. For many small businesses, access to this type of support could make a significant difference in how they plan and grow.
By backing AcceleratorNZ and Business Mentors New Zealand, the Government is supporting practical solutions that small business owners can apply directly to their operations. The focus is not on replacing business judgment with technology, but on giving owners and mentors better tools to make informed decisions.
The announcement also highlights the growing role of artificial intelligence in business development. As digital transformation continues across industries, small firms need access to affordable and practical tools that help them remain competitive. Government-backed AI support can help reduce the gap between large businesses with advanced digital resources and smaller firms with limited capacity.
For New Zealand’s small business sector, this funding could help create new growth opportunities by improving access to business diagnostics, mentoring support, and data-driven planning. It also reinforces the importance of combining technology with human expertise to deliver meaningful support for entrepreneurs and business owners.
The Government’s investment shows a commitment to helping small businesses build resilience and prepare for the future. By making AI-powered support more accessible, New Zealand is giving small firms a better chance to improve productivity, strengthen competitiveness, and contribute more effectively to the national economy.
