The National AI Centre (NAIC) is monitoring how small and medium enterprises (SME) use and view AI to understand what support they need.
NAIC is working with market research firm Fifth Quadrant to track adoption and perception of AI among SMEs across Australia. It’s part of NAIC’s mission to promote AI adoption and capability in SMEs, grow Australia’s AI industry and improve responsible AI practices.
This article summarises the key findings for July to September 2024.
There is a significant divide in AI readiness among Australian small and medium businesses. 35% of SMEs are adopting AI. However, 23% are not aware of how to use the technology and 42% are not planning to adopt AI in their business.
AI adoption rates over this quarter increased, peaking in September:
AI adoption varies significantly across industries. The health, education and manufacturing sectors saw the highest uptake at 45%. By contrast, only 6% of businesses in agriculture used AI based solutions.
This highlights the need for tailored, sector-specific strategies to boost AI literacy and adoption, especially in less tech-savvy industries.
Businesses already adopting AI favoured:
Businesses looking to introduce AI in their business favoured:
Industry sectors adopted some AI applications at higher rates:
SMEs using AI in their work recognise its competitive edge and potential. However, they face barriers to adoption including:
While businesses feel confident about managing regulatory compliance, there is room for improvement in cybersecurity readiness and responsible AI implementation.
Fifth Quadrant carries out research through surveys, with at least 400 completed surveys each month. Respondents are business owners or financial decision-makers from Australian SMEs with up to 500 employees.
Accredited research panels ensure a consistent sample representing the national population across states and territories. The data is weighted by industry, state and number of employees to reflect the national distribution of businesses.
The data highlights the growing interest and adoption of AI among Australian SMEs.
While there is significant progress, challenges remain including skills gaps, funding issues and the rapid evolution of AI. Tailored strategies and targeted support are essential to bridge the AI readiness gap and support widespread adoption across all industries.
