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Abstract

The study explores how digital infrastructure development, AI adoption, and government digital policies have integrated into business performance and innovation capability in New Zealand. The study utilizes survey data from business managers, and analyzes relationships among these key variables through AMOS structural equation modelling (SEM). It is identified that digital infrastructure has a strong positive association with businesses performance and businesses innovation capabilities by increasing operational efficiency and market competitiveness. AI is linked to driving business through automation, predictive analytics and strategic decision-making, which translates to better business outcomes. Also, the government digital policies are imperative in creating a favorable environment for digital transformation so that businesses can get access to the technological resources that they need.