New Zealand has been identified as one of the top-performing developed nations in consumer trust toward digital identification systems and artificial intelligence (AI), according to Checkout.com’s latest Digital Economy Trust Index.
The report evaluated perceptions around digital platform security, transparency, and usability, and linked trust levels to economic growth trends between 2014 and 2024.
The report, which compared 16 countries, placed New Zealand eighth overall but highlighted its leading position among advanced economies for public confidence in digital ID and AI.
China topped the list with a trust rating of 8.6 out of 10, followed by several Middle Eastern nations including the UAE and Saudi Arabia. Japan was the lowest-ranked nation, with significant consumer scepticism toward digital platforms.
Checkout.com COO Jenny Hadlow said digital transactions require a shift in how trust is built.
“In the traditional economy, with physical commerce, trust is built in. You pay with chip and PIN or cash and leave with your products in hand. In the digital economy, trust is earned. Clicking ‘buy’ is part of a journey – with consumers handing over sensitive data, needing to believe in recourse if anything goes wrong, and making leaps of faith with emerging technologies,” she said.
Despite New Zealand’s positive consumer sentiment toward emerging digital tools, the Reserve Bank of New Zealand (RBNZ) has expressed concern over potential risks stemming from the widespread integration of AI in financial and insurance operations.
In its latest Financial Stability Report, the RBNZ outlined that while AI can enhance fraud detection, data modelling, and cyber resilience, it also introduces new systemic risks. These include reliance on third-party AI vendors and increasing technological complexity within institutions.
The central bank advised financial service providers to assess AI-related risks within their existing governance structures, adding that regulatory frameworks would need to evolve in step with technological advancements.
In a parallel trend, businesses across Australia and New Zealand are significantly increasing their investments in generative AI (GenAI).
A study by Snowflake and the Enterprise Strategy Group found that 32% of organisations in the region allocate more than 25% of their tech budgets to GenAI initiatives – higher than the 25% global average.
The report also noted that local firms reported an average 44% return on investment from GenAI deployments, surpassing the global benchmark of 41%. Around 91% of participants in the region said GenAI improved decision-making speed.
However, the rollout has not been without friction. Challenges around hiring AI-skilled staff and managing fragmented data infrastructure were commonly cited as barriers to efficient deployment.
The insurance industry, while increasingly using AI for claims automation and customer service, continues to encounter public concern.
A consumer survey by GlobalData, which included New Zealand respondents, revealed mixed feelings. While many acknowledged improved service speeds, concerns around data use, transparency, and automated decision-making remained prominent.
“Despite the positive perceptions, insurers face challenges in ensuring consumers adopt AI tools. Many consumers find that the technology is not yet sufficiently developed to be adopted at scale, eroding their trust,” said Beatriz Benito, lead insurance analyst at GlobalData.
