AI tools slash labour time for four out of five firms

Australian businesses are rapidly moving from experimenting with generative AI to using it routinely. A new survey found four in five now use AI tools, and many report significant cuts in labour time.

The research, conducted by comparison platform Small Business Loans Australia, surveyed 200 business owners and decision-makers on AI use, time savings, and expectations for future profitability gains across common business functions.

Across the sample, 80% of businesses reported using AI tools in some form. Respondents cited standalone tools such as ChatGPT and Claude, AI features embedded in software such as Microsoft Copilot, and AI chatbots.

Among AI users, many reported reduced workloads. In the survey, 41% estimated AI saves at least 25% of total labour time; within that group, 17.5% said it saves more than half. A further 29% estimated savings of 11% to 25%.

Uptake and outcomes varied across the country. Western Australia recorded the highest adoption rate, with 91% reporting AI use, while other major states ranged from 74% to 83%.

Reported time savings also differed by state. New South Wales and Western Australia stood out, with 39% of businesses in each state estimating AI saves more than 25% of time.

Where AI Is Used

The research points to administrative and workflow tasks, along with writing and communication, as the main areas where businesses see value. These categories include drafting and editing documents, preparing standard communications, summarising information, and handling routine process steps.

It also asked where respondents want AI to improve next, suggesting demand for more connected use of AI across workflows rather than isolated tools for individual tasks.

Participants estimated the potential profitability uplift from what the survey described as a "perfected" AI capability across five functions: writing and communication, administration and workflow, sales and customer service, decision-making and analytics, and creative work.

Administration and workflow delivered the strongest results. In that category, 77% forecast a profitability lift from "perfected" AI, including 20% who predicted gains of 21% to 30%.

Writing and communication was close behind, with 75% expecting a profitability increase. Within that figure, 15% predicted gains of 21% to 30%.

Confidence was lower in areas requiring more judgement or nuanced interaction. Decision-making and analytics, and sales and customer service, each drew support from 68% of businesses that believed AI could deliver profits in those areas.

Integration Focus

Alon Rajic, founder of Small Business Loans Australia, linked the biggest productivity gains to routine tasks and day-to-day use across operations.

"Businesses still see the biggest opportunity in AI is removing repetitive admin-heavy tasks, communication and moving work forward without constant human intervention. We can see the largest gains are where businesses are using AI across day-to-day operations, rather than as a one-off tool, particularly when it is built into existing software, customer service systems and workflows," Rajic said.

He said the next stage of adoption would depend on how well organisations embed AI into everyday work and connect tools across teams.

"Our findings point to the next phase of AI adoption being less about access to tools and more about embedding it into the way work gets done. The goal is to compound time savings across teams and weeks, and improve implementation quality for sustainable improvements in profitability," Rajic said.

The survey adds to growing evidence that generative AI is shifting from novelty to routine use in small and medium-sized organisations, particularly where it fits into existing software and repeatable processes. Further changes are expected as vendors expand built-in AI features and businesses standardise internal workflows around them.