AI adoption among Australian SMEs to surge by 2026, survey finds

A recent survey by Small Business Loans Australia has found that a significant portion of small and medium-sized enterprises (SMEs) in Australia are either already utilising artificial intelligence (AI) or plan to do so by 2026. According to the survey, 25% of all SMEs are currently using AI, and 60% will adopt AI within the next two years.

The survey, which gathered responses from 205 directors and decision-makers across various business sizes—micro (1-10 employees), small (11-50 employees), and medium (51-200 employees)—revealed that New South Wales (NSW) leads in AI adoption. In NSW, 67% of SMEs are already employing or planning to use AI by 2026.

The data further showed that medium-sized businesses are at the forefront of AI adoption, with an overwhelming 90% planning to incorporate AI by 2026. Presently, 37% of these businesses have already integrated AI, and an additional 53% are preparing to do so. On the contrary, micro businesses are slower to adopt AI, with only 18% currently using it and another 23% planning to integrate AI by 2026.

Alon Rajic, Founder and Managing Director of Small Business Loans Australia, pointed out, "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."

The survey identified AI-powered reporting and chat boxes with email replies as the most embraced AI tools among SMEs. AI-powered customer and data analysis tools topped the list, with more than a quarter (27%) of all SMEs currently using or planning to use such tools. AI-powered reporting tools came in second, at 25%, with AI chat boxes and customer email replies ranking third at 24%.

NSW SMEs are particularly inclined towards AI-powered customer or data analysis tools, with 36% of businesses in the state currently using or planning to use such technology. Furthermore, 53% of small businesses have adopted or plan to adopt AI chat boxes and email replies, while 50% of medium-sized businesses use AI productivity tools.

The survey also highlighted geographical differences in AI adoption. South Australia, currently lagging in AI usage (19%), is poised to catch up, with 38% planning to integrate AI tools by 2026. In contrast, Western Australia boasts the highest current integration rate at 40%, but only 13% plan to adopt AI in the future, suggesting a regional resistance to expanding AI use. Queensland has the lowest current AI usage, with just 17% of businesses using AI tools; however, 37% plan to integrate AI within the next two years.

Rajic commented on the international trend, noting, "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 survey demonstrates that Australian businesses are seeing value in using AI for tasks that are labour-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."