AI orchestration, music to business ears

The AI race in business is no longer about developing ever-more sophisticated models. Today’s AI is already advanced enough to automate tasks and support decision-making.

Instead, the race is on to embed AI into systems that continuously improve themselves by learning from every interaction, increasing efficiency, and enhancing decision-making across business functions.

This is called AI orchestration, which involves the integration of AI agents with other models, tools and data sources to automate and manage larger AI systems. IBM’s website compares this process to a traffic light system, which dynamically adjusts to traffic flow, coordinating signal changes across a city to keep vehicles moving efficiently.

Companies that master AI orchestration won’t just react to change; they will define how their industries operate. Those that don’t will be left struggling to keep up.

Consider Fonterra, New Zealand’s largest exporter, which operates in one of the most logistically complex industries in the country. Peak milk production occurs in late October, but March to May is the busiest export season when shipments surge 20 percent above the annual average. A single disruption – from the weather, regulatory changes, or market fluctuations – can cost millions.

Instead of reacting to problems as they arise, Fonterra’s systems anticipate and adapt. Predictive analytics refine demand forecasts. Automated compliance checks accelerate documentation. AI-enhanced pricing models adjust dynamically to market conditions.

These AI-driven decisions don’t happen in isolation. Logistics, pricing, and compliance feed into one another, ensuring that the system adjusts in real time as variables shift. Instead of scrambling to solve problems, Fonterra shapes its supply chain before disruptions occur.

This isn’t just automation. It’s AI orchestration.

In our previous Newsroom article, we argued that AI is reshaping competition. The firms that control AI infrastructure, dictate access, and influence AI-driven decision-making will set the rules for entire industries.

But the real challenge is not just adopting AI, it’s orchestrating it. That means ensuring AI systems, automation, and data work together to compound competitive advantage.

AI orchestration: The new competitive edge

Many businesses still treat AI as a tool for efficiency by automating isolated tasks, but the companies pulling ahead are those weaving AI into every layer of decision-making so that insights from one part of the business refine strategies in another.

When AI is embedded across operations, it doesn’t just improve efficiency. It creates self-reinforcing systems that make businesses smarter, faster, and more resilient.

AI orchestration is not as simple as implementing new software. It requires investment in the right technology, skilled talent, and an integrated approach that aligns AI capabilities with core business functions. While implementation can be financially challenging, the cost of inaction is far greater.

Why AI orchestration will determine industry leaders

As AI becomes widely used, the real differentiator will be who orchestrates AI most effectively across their entire organisation.

Businesses that fail to orchestrate AI effectively will fall behind competitors who do and will be forced to compete on someone else’s terms.

For example, retailers that don’t integrate AI into their supply chains won’t keep up with e-commerce platforms that predict demand shifts before they happen. Financial institutions that don’t orchestrate AI across risk modelling and compliance will follow those that do.

This is already happening. AI-driven platforms are setting the rules for pricing, logistics, and supply chains. Businesses that don’t control their AI systems pay higher costs, accept reduced margins, and lose flexibility in strategic decisions.

NZ companies leading the shift from adoption to orchestration
Fonterra isn’t the only company in New Zealand to be moving beyond AI adoption toward orchestration.

Air New Zealand is embedding AI across its operations, optimising in-flight catering, airport efficiency, and long-term sustainability. The company has used AI-powered image recognition to analyse 30,000 meal trays to reduce waste and refine offerings to match passenger preferences.

The airline is also testing next-generation self-service kiosks that process multiple check-in steps simultaneously, cutting wait times. AI is even shaping its future fleet strategy, including electric aircraft for cargo transport.

Toyota Finance New Zealand is another example of a company that is advancing toward AI orchestration. It has automated fleet leasing, customer onboarding, and loan approvals using robotic process automation. AI-driven insights reduce processing times, improve compliance, and mitigate financial risk. AI also monitors vehicle servicing, ensuring leased cars are maintained on schedule, reducing liability exposure.

These companies aren’t just adopting AI in isolated functions. They are building AI-driven ecosystems where, eventually, every decision can be informed by connected, real-time intelligence.

New Zealand businesses can’t afford to treat AI as an experiment or a future consideration. The shift is happening now, and the companies that act today will shape the competitive landscape for years to come.