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The Times Australia
Business and Money

SMEs harnessing the power of AI


Amid the rapid rise of artificial intelligence tools, new figures have revealed 60 per cent of all Australian businesses are already using, or planning to integrate, AI into their operations over the next two years. 

 

The figures were revealed in an independent survey commissioned by business loan comparison platform Small Business Loans Australia. The survey questioned 205 directors and decision-makers across micro (1-10 employees), small (11-50 employees) and medium-sized businesses (51-200 employees) to gauge their rate of AI adoption and which tools they rely on.  
 

The full survey results, including breakdowns across the major states, can be found here: https://smallbusinessloansaustralia.com/are-small-to-medium-businesses-harnessing-the-power-of-ai/  

 

The survey revealed 1 in 4 (25%) of Aussie businesses have already embraced the swelling tech trend and adopted AI tools throughout their day-to-day operations 

 

An eyewatering 90 per cent of medium-sized businesses (51-200 employees) will be using AI by 2026. Specifically, the data shows over a third (37%) have adopted AI, with an additional 53 per cent planning to integrate it into their businesses by 2026 

 

Mirco businesses (less than 10 employees) are the most likely to resist the evolving digital landscape, with just 18 per cent saying they’re already using AI and an additional 23 per cent planning to use it by 2026. 

 

Non-creative AI tech reigns supreme among Australian SMEs 

 

Small Business Loans Australia asked respondents which types of AI tool they have embraced or are planning to integrate into their businesses in the next two years. The survey shows AI-powered reporting and chat boxes with email replies are the most embraced AI tools among SMEs. More than a quarter (27%) of all SMEs use or plan to use AI-powered customer or data analysis tools. AI-powered reporting was the second most favoured tool with a quarter (25%) either harnessing it or planning to over the next two years. Chat boxes and customer email replies rank third for all SMEs at 24 per cent.  

 

AI productivity tools are also favoured among SMEs, with 23 per cent using it or preparing to integrate it into day-to-day operations. When it comes to genuine customer engagement – or even copy editing – Aussie businesses are less likely to use AI, with only 15 per cent saying they use or will use AI-powered copy generators and only one in 10 (11%) confessing they use or plan to use a customer relationship manager bot. 

 

When it comes to business sizes, AI tool trends vary, with half (50%) of all medium-sized operations embracing AI productivity tools and 53 per cent of small businesses leaning on AI chat boxes and email replies. Half (49%) of small businesses rely or will rely on AI-powered reporting.  

 

The larger the business, the more likely they are to give creative work to the bots, with 20 per cent of medium-sized businesses admitting to using or planning to use AI copy generators and editors and image generation, and almost a third (27%) cent confessing to using AI for customer relationship management.  

 

Despite widely shunning AI, a small percentage of micro businesses use data crunching or automated-reply AI. Fourteen (14) per cent saying they use or will use AI-powered customer or data analysis tools. 

 

NSW is Australia’s most pro-AI state 

 

Among the major states, NSW SMEs are most in favour of artificial intelligence, with 67 per cent using or planning to incorporate AI by 2026. West Australian businesses are national leaders when it comes to already integrating AI – at 40 per cent. However just 13 per cent of WA businesses aim to bring AI tools into their operations in the future, spelling a widespread tech resistance.  

 

Despite just 19 per cent of South Australians use AI across their businesses, they are planning to massively catch up, with an incredible 38 per cent respondents saying they’ll integrate AI by 2026. 

 

The sunshine state has fallen behind in the current AI usage stakes, with just 17 per cent of Queensland businesses leaning on artificial intelligence tools. Over the next two years, 37 per cent say they plan to bring it in. 

 

Among the states, a high 36 per cent of NSW businesses are leaning on AI-powered customer or data analysis tools with AI chat boxes and email replies for customers also favoured by NSW (at 33%) and WA businesses equally. 

 

Victorian businesses copy generating and editing AI tools the least, with only 6 per cent using or planning to use it in the future. South Australian businesses lead the charge on shirking customer relationship management bots, on the other hand, with only 6 per cent adopting that AI. 

 

Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “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. 

 

“When delving deeper into this trend, it’s easy to see that AI is being heartily embraced in areas where human error can be costly, and manpower can be time consumingAustralian businesses are increasingly seeing the value in utilising AI for those arduous, laborious and menial tasks that don’t require a human touch, creativity or finesse. 

 

“This is a trend we’re seeing internationally too with a colossal rise of companies using financial reporting AI clocked over the past year.1 

 

Alon says the rapid-fire rise of AI usage down under was made all the more remarkable given ChatGPT only launched in 20222, but given the economic strain of many businesses and particularly smaller operators3 it was surprising that more micro businesses weren’t embracing the trend. 

 

“This tells us that customer relationships and a considered, human touch are paramount to Australia’s smallest businesses, but as AI offerings continue to expand and more knowledge about their cost and time saving benefits emerge, we expect this trend to change. With an extraordinary 90 per cent of medium-sized businesses expecting to harness AI by 2026, it stands to reason that smaller SMEs will follow suit.” 

 

The full survey results, including breakdowns across the major states and business sizes, can be found here: https://smallbusinessloansaustralia.com/are-small-to-medium-businesses-harnessing-the-power-of-ai/ 


 

Advice Disclaimer   
This article is intended to provide general information only, and not financial advice. Before acting on any information in this article, you should consider your individual and business circumstances, and seek independent and professional legal, financial, taxation or other advice to help you determine whether these actions are appropriate for your needs.    

 

For more information, visit smallbusinessloansaustralia.com)

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