NAB says 42% of Aussie SMEs use AI to boost productivity

NAB Economics says 42% of Australian small and medium-sized enterprises use artificial intelligence, indicating uptake beyond large companies.

According to the research, a further 14% of SMEs plan to adopt AI, while 44% are not using it. With more than 98% of Australian businesses falling into the small and medium category, adoption among smaller firms is likely to shape how widely AI spreads across the economy.

The data suggest that AI use is concentrated in routine business tasks rather than in specialist applications. Among SMEs already using the technology, the most common areas are marketing and sales (51%), followed by operations and logistics (39%) and customer service (25%).

NAB says this pattern shows small businesses moving from experimenting with AI to embedding it in day-to-day work, driven by time savings, lower administrative workloads and support for decision-making.

Adoption remains uneven across industries. Property Services leads at 69%, followed by Finance and Insurance at 65% and Business Services at 61%.

At the other end of the scale, Retail stands at 22%, Transport and Storage at 21%, and Manufacturing at 35%. The gap points to differing levels of familiarity, use cases and readiness across sectors that make up a large share of the Australian economy.

Pete Steel, Group Executive for Digital, Data & AI at NAB, said the findings showed AI was becoming a practical tool for smaller firms.

"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.

He said broader adoption could have implications beyond individual businesses.

"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."

"The opportunity now is to help many more companies adopt this technology safely and with confidence through something that can feel complex and uncertain. Whether they are bakeries managing orders, wineries forecasting demand or restaurants reducing admin, this technology can deliver real benefits for businesses 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, which offer tailored advice to help businesses achieve productivity benefits."

Case studies

The research was accompanied by examples from small businesses using AI in operational and financial work. Their experiences reflect a recurring theme in the survey findings: owners are looking for practical returns rather than novelty.

Tim Gauci, owner of Design and Diplomacy, said he had moved from scepticism to regular use of AI tools for financial analysis, quotations and onboarding.

"I invested time in understanding what AI is and how to use it properly in the context of my business, so the outputs were actually useful," Gauci said. "If you want more free time, you need to work out how to use it. It doesn't take long."

Andrew Blair, director at Bella Manufacturing, described a similar shift after initially viewing AI as something for highly technical users. He said a practical workshop helped him start with smaller applications and address concerns about privacy and security.

"We're using AI across marketing, sales, operations and logistics," Blair said. "The real value isn't the technology. It's the time it gives back."

Productivity focus

The emphasis on time savings is notable, as it suggests SMEs are evaluating AI in operational terms. For many owner-managed firms, reducing time spent on repetitive work can affect staffing, customer response times, and the time owners can devote to business development or personal commitments.

That also helps explain why administrative work, marketing and decision support have emerged as early use cases. These are functions where small businesses often have limited in-house resources and where relatively simple tools can have an immediate effect on workflows.

The findings come as policymakers and industry groups continue to focus on Australia's productivity performance. If AI use expands from early adopters to a broader base of SMEs, the aggregate impact could be significant, given the sector's size in terms of employment and business numbers.

Still, the figures show a substantial share of the market remains untouched by the technology. Nearly half of SMEs are not using AI, suggesting concerns about complexity, trust, skills and implementation continue to hold back adoption.

For banks, advisers and public sector programs, that leaves a sizeable audience for practical guidance on where AI can be applied and how to manage privacy and security risks. For small business owners, the survey points to a simpler calculation: whether the technology saves enough time to justify the effort of learning to use it.

"The real value isn't the technology. It's the time it gives back," Blair said.