A recent survey conducted by Small Business Loans Australia has unveiled a significant trend among small and medium-sized enterprises (SMEs) in Australia towards the adoption of artificial intelligence (AI). The survey, which involved 205 directors and decision-makers from businesses of varying sizes—micro (1-10 employees), small (11-50 employees), and medium (51-200 employees)—highlighted a growing inclination towards AI integration. It found that 25% of SMEs are currently employing AI technologies, with an additional 60% planning to do so by 2026.
New South Wales (NSW) emerged as the leading state in AI adoption. The survey revealed that 67% of SMEs in NSW are either already using AI or plan to integrate it by 2026. This positions NSW as a significant hub for AI-driven business practices within Australia.
The survey further distinguished medium-sized businesses as the most proactive in AI adoption. A remarkable 90% of these enterprises are expected to incorporate AI by 2026, with 37% already utilizing such technologies and an additional 53% preparing for implementation. In contrast, micro businesses show a slower rate of adoption, with only 18% currently using AI and another 23% planning to do so within the next two years.
Alon Rajic, Founder and Managing Director of Small Business Loans Australia, highlighted the clear trend towards AI among Australian businesses. “These figures paint a clear picture of where Australian businesses are leaning on AI. Across the board, time-consuming data analysis or automatic reply tools are favoured above all in this fast-growing tech realm,” Rajic noted.
The survey identified specific AI tools that SMEs are most inclined to adopt. AI-powered customer and data analysis tools were the most popular, with 27% of all SMEs currently using or planning to use them. AI-powered reporting tools followed closely at 25%, while AI chat boxes and customer email replies were favored by 24% of the respondents. These tools are seen as critical in enhancing productivity and efficiency within businesses.
NSW businesses showed a particular preference for AI-powered customer or data analysis tools, with 36% of SMEs in the state currently using or planning to use such technology. Additionally, 53% of small businesses in NSW have adopted or plan to adopt AI chat boxes and email replies, while 50% of medium-sized businesses are employing AI productivity tools.
The survey also shed light on regional variations in AI adoption across Australia. South Australia, currently lagging with only 19% AI usage, is expected to see significant growth, with 38% of businesses planning to integrate AI tools by 2026. Conversely, Western Australia, which has the highest current integration rate at 40%, shows a lower future adoption rate of 13%, indicating regional resistance to further expansion of AI use. Queensland reported the lowest current AI usage, with just 17% of businesses employing AI tools; however, 37% plan to integrate AI within the next two years.
Rajic commented on the broader international trend, observing, “We are seeing a colossal rise of companies using financial reporting AI clocked over the past year. It is surprising that more micro businesses aren’t embracing the trend, given the economic strain on many businesses, particularly smaller operators.”
The findings of the survey underscore the value Australian businesses see in leveraging AI for tasks that are both labor-intensive and prone to human error. Rajic added, “This tells us that customer relationships and a considered, human touch are paramount to Australia’s smallest businesses. But as AI offerings expand and their cost and time-saving benefits become clearer, we expect this trend to change.”
Overall, the survey illustrates a clear trajectory towards increased AI adoption among Australian SMEs, driven by the need for enhanced efficiency and productivity. As AI technology continues to evolve and demonstrate its benefits, it is anticipated that even the most reluctant businesses will begin to embrace these innovations. This trend not only reflects the changing landscape of business operations in Australia but also aligns with global movements towards more technologically integrated business practices.
