AI that actually works for you

Pictured above: Lou Compagnone.

Datacom’s Director of AI, Lou Compagnone, shares practical advice on where Kiwi businesses are getting AI right, what to watch out for, and how to build momentum from inside the business out.

When it comes to artificial intelligence (AI), Lou Compagnone has a front-row seat to how New Zealand businesses are engaging with the technology – and where they’re getting it right, or wrong. As Director of AI at Datacom, she works across the business and with clients, helping organisations put the right AI strategies, tools and guardrails in place.

“I often work directly with leadership teams to identify really good use cases for AI and to help them think more strategically about how AI might reshape their business,” Lou says. “Not just a few flashy tools here and there, but asking, what could we actually shift from, and to, as a result of AI?”

Datacom has integrated over 90 internal AI productivity tools and transformed its digital engineering services with what Lou calls a “hybrid workforce” of AI agents and humans. These agents help modernise legacy websites, streamline processes, and support faster, more efficient development.

“What that means for our clients is greater speed, lower cost, and better quality outcomes,” she says.

The company’s Datapay payroll assistant is another example. “It helps payroll professionals answer complex queries – say, about maternity pay – and references actual payroll legislation. There’s a number alongside the answer showing the source, which builds trust.”

But Lou cautions against rushing into AI without proper foundations. “I always say, ‘go slow to go fast’. If you launch a tool like Copilot before checking your data governance or training staff, you risk what I call organ rejection. The technology doesn’t land – and you don’t see the benefits.”

Even medium-sized businesses should have a policy, she says – not just for usage, but development too. “These are low- and no-code tools now. Anyone can build with them, so the rules need to be clear. And the good news is, you can even use AI to help write your policy.”

A growing concern is the rise of “shadow IT” – employees using public AI tools without oversight. “I’ve seen cases where people are putting enterprise data into ChatGPT. So businesses are being forced to respond – not because leadership is driving it, but because staff are already experimenting.”

That urgency is backed by data from Datacom’s State of AI Index 2024 report, showing local AI adoption has jumped from 48 to 66 percent in just a year. “Boards are pushing for it, staff are using it, and the tech is far more accessible than even five years ago. That’s what’s driving the momentum.”

So where’s the best place to start? Lou recommends internal use – what she calls “backstage AI”.

“It’s safer. If you give your team the tools to work more efficiently behind the scenes, it almost always leads to better customer outcomes. Better knowledge tools for staff mean better service.”

Datacom’s work ranges from government agencies to the Melbourne International Comedy Festival, where a conversational AI tool helped users find shows based on quirky criteria – like good options for a second date.

But no matter the application, the key to success is involving your people. “Let them co-design the solutions. They know where trust, empathy and judgement are needed – and which tedious tasks they’d love to hand off to an AI intern.”

Ultimately, she says, businesses need to treat AI as a long-term transformation, not a bolt-on solution. “The ones that thrive will be those thinking strategically. They’ve got the right foundations, a centre of enablement, and leadership with strong AI literacy.”

And for those still waiting to get started?

“Start experimenting. Play with the tools, safely. Build your awareness. Then step back and ask: Where are the real problems? That’s where AI can help.”

Because, as Lou puts it, the future isn’t about replacing people – it’s about what humans and AI can create together.

For more on how Datacom can help your business succeed with AI, email the team on [email protected].