Australian ICT SMEs lead in AI adoption amid acute skills gap
Australian small ICT businesses are rapidly adopting artificial intelligence amid a significant shortage of skilled workers required to support growth in the sector.
According to BizCover's ICT Small Business AI Report 2025, 83% of small information and communications technology firms are already utilising AI, with nine in ten either using or planning to adopt it within the next two years. The report is based on insights from 110 ICT businesses and is part of a wider study covering 965 Australian small businesses across various industries.
Uptake and efficiency
Small ICT businesses are embracing AI at one of the highest rates across all sectors, with 60% of respondents expecting the technology to deliver major improvements in efficiency. This marks ICT firms as the most optimistic about AI-enabled efficiency gains among the industries surveyed.
"Within the tech team at BizCover, we're already using AI to help streamline processes, boost efficiency levels and improve customer service," said Brad Hoyle, Operational Excellence Manager at BizCover. "Smaller ICT businesses are using it for similar purposes."
The survey's findings reveal a clear industry trend to invest in capabilities that enhance business performance and enable streamlined customer support.
AI's role in the workplace
The report indicates that ICT professionals predominantly see AI as a means of assisting with tasks rather than replacing entire jobs. While 56% of respondents believe some tasks could be replaced by AI, only 18% think full roles are at risk of redundancy due to AI adoption.
Roles identified as most likely to undergo change due to AI include technical writers, internal IT support or helpdesk technicians, customer support staff, software developers and data analysts.
"ICT professionals see AI as a tool that enhances productivity by handling repetitive or clearly defined tasks," said Hoyle, "while complex, strategic work remains firmly in human hands."
Escalating skills demand
The report also highlights a growing demand for skills in coding, cybersecurity, data analytics and communication. Seventy-one percent of ICT businesses expect AI to increase the need for new skills in the next three to five years. However, 87% report that it is already difficult to hire workers who possess both the technical and soft skills required in the evolving landscape.
"ICT leaders know that technical skills are only part of the puzzle," said Hoyle. "Soft skills like communication, creativity and emotional intelligence are also important considerations for businesses when navigating the future of AI."
Over half of respondents (54%) believe that AI could diminish human capability in content creation, with 42% predicting a decline in interpersonal and social skills as AI becomes more integrated into business processes.
Positive attitudes despite challenges
Despite concerns about finding and developing the right talent, the ICT sector's overall outlook regarding AI remains positive. Three-quarters of ICT professionals feel positive about the impact of AI on their careers, while only 8% express negative sentiments.
"The ICT sector's optimism about AI highlights its readiness to embrace technological change and leverage AI to enhance both technical and soft skills," said Hoyle.
The full ICT sector-specific analysis is built from the experiences of 110 small ICT businesses, using responses collected during April 2025. The larger BizCover survey compares insights from seven different industries, with additional sector-focused reports also available in consulting, accounting, retail, marketing, health and architecture.
