AI uptake surges among SMEs

New data from National Australia Bank (NAB) Economics shows artificial intelligence adoption is accelerating across the SME sector, with 42 per cent of businesses already using AI and a further 14 per cent planning to adopt the technology.

The findings point to a shift in Australia’s AI story, with uptake moving beyond early adopters into the broader small business community, which accounts for more than 98 per cent of all businesses nationwide.

However, the research also highlights that 44 per cent of SMEs are yet to implement AI, underscoring what NAB described as a significant opportunity to build capability and support wider adoption to drive productivity and economic growth.

NAB group executive for digital, data, and AI, Pete Steel, said the data showed a transition from experimentation to practical use cases among business owners.

“We’re seeing a clear shift from curiosity to practical use, with more businesses using AI to save time, reduce admin burdens and make better decisions,” Steel said.

“Unlocking this adoption at scale across the economy has real potential to help Australia increase productivity and lift our global competitiveness.

“Australians have long demonstrated themselves as early adopters of technology and this research shows that mindset in action, they’re embracing AI, not scared of it.”

Among SMEs already using AI, the most common applications are in marketing and sales (51 per cent), followed by operations and logistics (39 per cent) and customer service (25 per cent), reflecting a focus on practical, efficiency-driven use cases.

Adoption varies significantly across industries, with property services (69 per cent), finance and insurance (65 per cent), and business services (61 per cent) leading uptake.

In contrast, retail (22 per cent), transport and storage (21 per cent), and manufacturing (35 per cent) lag behind.

Steel added: “The opportunity now is to help many more companies through something that feels complex and uncertain – to adopt this technology safely and with confidence.

“Whether they are bakeries managing orders, wineries forecasting demand or restaurants reducing admin, this technology can help deliver real benefits for themselves and the broader Australian economy.

“It’s encouraging to see the Government supporting this growing appetite through offerings like the National AI Centre ‘AI Adopt’ and ‘Digital Solutions’ programs that offer tailored advice for businesses to help them achieve productivity benefits.”

[Related: Business confidence collapses despite resilient conditions]

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