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Just 7 per cent of Australian small- to medium-sized enterprises (SMEs) consider AI a top investment priority, as highlighted in ScotPac’s SME Growth Index Report.
This is contrary to data from late 2024 and early 2025, which was anticipating a massive uptake in AI investment among small businesses.
A NAB survey from early in the year revealed that 41 per cent of SMEs planned to increase tech adoption throughout 2025 and a third planned to use more AI and invest more into cyber security.
The lagging adoption highlights a disconnect between the ambitious plans and the financial capability of small businesses.
ScotPac revealed that one in three SMEs said they have no plans to invest in new tools or technologies. This figure rises to nearly two-thirds among businesses with declining revenue.
There is a strong appetite for Aussie SMEs to grow, but many are being held back by cost pressures, said ScotPac CEO Jon Sutton.
Despite this, 9.5 per cent said they consider automation tools a key investment opportunity. While automation isn’t inherently AI, many processes leverage AI to boost efficiency.
Those who are in a strong financial position aren’t remaining complacent and are focusing on retention and expansion.
The top investment priorities for SMEs were revealed, with a focus on tech remaining strong.
Sales and business development tools are the top considerations with nearly a quarter (23 per cent) directing their innovation spending to these areas.
Following was improved business forecasting tools, with 22 per cent of SMEs investing in these systems.
Another 16 per cent considered cloud CRM systems and embedded financing platforms a top priority.
Sutton said the role of lenders and brokers is crucial amid the desire to invest in new technologies.
“Brokers who understand their clients’ needs and stay up to date with relevant finance products are well placed to support this renewed appetite for innovation,” said Sutton.
“Our specialist teams are also on standby to assist any business owner or operator thinking about investing in tools to promote greater productivity.”
[Related: 2025 to be the ‘year of tech’ for SMEs]
