Data and AI governance: building trust in a digital future

In a global 2025 study, 61% of New Zealand respondents reported their organisation uses AI. Globally, this figure is 77%. As organisations accelerate their AI adoption, the importance of sound data practices and strong data and AI governance has never been greater.

In the same 2025 study (Trust, attitudes and use of artificial intelligence), New Zealanders reported the lowest levels of excitement about AI and the lowest perceived adequacy of AI regulation in the world.

The Government has acknowledged that New Zealand is falling behind other small, advanced economies and, in 2025, launched the Public Service AI Framework to encourage greater use of AI in public services. This initiative forms part of New Zealand’s Strategy for Artificial Intelligence to accelerate private sector AI adoption and innovation.  

A core consideration of the strategy is the critical need for strong governance of data and AI. To move faster and smarter, to innovate responsibly and with confidence, and to ensure the trust of New Zealanders, organisations must maintain a focus on their governance frameworks for managing data and AI use.

Prioritise data and AI governance

Organisations are collecting more data than ever before. Data begets more data, creating an endless loop. Directors should ensure robust governance practices are in place to ensure data is accurate, secure and usable – creating a foundation for effective decision-making and innovation.

Having a framework in place enables organisations to deploy AI models that are unbiased, transparent and accountable. Ensuring sound data and AI management helps avoid reputational damage, regulatory exposure and a loss of stakeholder trust.

For New Zealand businesses, while regulation is still emerging, the opportunity to act is now. Governance of data and AI should be built into your assurance practices, providing a self-imposed safeguard to align your AI outputs with government frameworks, ethical values and expectations, while preparing for regulatory mandates. Frameworks that embed transparency, fairness and accountability are essential.

Many organisations delay strengthening their governance practices, heightening the risk of data inconsistencies, or inappropriate AI outcomes. By the time problems surface, they can be costly and complex to fix.

Key principles for good governance

To build a governance framework that enables growth rather than constraining it, organisations should focus on:

• • Clarity of ownership: clearly defined accountability for data and AI use across the organisation
  • Ethical frameworks: principles to guide responsible use, particularly where customer data or AI-driven decisions are involved
  • Transparency and explainability: ensuring AI outputs can be understood and validated
  • Continuous monitoring: governance is not a one-off exercise – it requires ongoing oversight as technologies and risks evolve
  • Integration with strategy: governance should be embedded into assurance processes, not treated as an afterthought

A framework for trusted AI 

KPMG’s Trusted AI framework provides a strategic lens for organisations to harness artificial intelligence with confidence. At its core, Trusted AI means embedding trust, transparency and accountability into every stage of the AI journey. By aligning technology with ethical standards and human oversight, organisations can drive innovation while safeguarding reputation and stakeholder trust.

Many of the key themes in Trusted AI align with governance best practice, and can be extended to:

• • • Fairness: designing and deploying AI to reduce bias and promote equitable outcomes
    • Reliability: building robust, secure and resilient AI systems
    • Human-centricity: keeping people at the centre of AI development and deployment, with human judgement guiding key decisions

For New Zealand organisations, adopting Trusted AI principles early provides a competitive advantage. It demonstrates leadership, builds confidence with customers and partners, and ensures readiness for evolving regulation.

The challenges ahead

KPMG’s global research shows only 46% of people globally are willing to trust AI systems – and in New Zealand, that figure drops to 34%. The study highlights that trust improves significantly when organisations demonstrate transparency, accountability and human oversight in AI deployment. That is a clear signal people will back technology when they believe it’s being used responsibly.

Getting data and AI governance right can be challenging. It requires investment in tools, people and processes. It also demands a cultural shift, viewing governance as an enabler of trust and innovation, not just a compliance burden. Organisations that embed strong governance will be better placed to unlock the benefits of AI – and better prepared if things go wrong.

For leaders in New Zealand, this is where the focus needs to be. Governance is the mechanism that grants permission to leverage AI’s benefits. It is how you earn the social licence to use AI and gain its value.

KPMG supports organisations to build governance frameworks that are practical, future-ready and aligned to strategy. In a world where data and AI are central to success, governance is the bridge between risk and opportunity. Without it, organisations risk opening a Pandora’s box. With it, they can step confidently into a digital future.

Tony Evans

Tony Evans is a Partner at KPMG New Zealand. He specialises in complex technology initiatives and technology-led innovation. He has extensive experience in New Zealand and globally, including public sector, transport, financial services and primary industries.