"She is just a typical 14-year-old, really bubbly. She sort of doesn't really know what is about to hit her with life and all that [laughs]."
The West Australian is not alone in her praise.
Compatriot Sarah Kemp, who has finished runner-up twice at the event and 10th last year, was also not surprised to see the young Korean-born Kiwi regarded as the favourite.
"I guess it's to be expected," said the 26-year-old. "She is pretty amazing.
"One of the days I played with her she shot a seven under so it was good to watch. When I was 14, I was playing off a handicap of 25 so she's doing pretty special things. It will be nice to see how her career pans out."
Smith had simple advice for Ko as she looked to improve her game to be ready to join the professional ranks. "Follow your heart," said the LET player.
"Go with how it feels. She told me that she wanted to go to college, which surprised me. I thought she'd turn pro in a couple of years because she has so much amateur experience but that is the route she wants to take - Michelle Wie has taken that route and it worked for her - just go with whatever works for you as a person and enjoy it."
The Open begins at the Pegasus Golf Club with Ko paired with two-time runner up Sarah Kemp and LET player Becky Brewerton (Wales).
There are 109 players from 25 countries in the field for the 54-hole championship.
The winners of the previous three New Zealand Open events have come from the European tour with Gwladys Nocera (France) winning in 2009, the great Laura Davies (England) in 2010 and Smith last year.
There is a cut for the top 50 professionals plus ties after 36 holes, to fight for the €200,000 ($315,000) prizemoney over the final round on Sunday.