Exclusive: New research reveals 19% of Australian SMEs are using AI

A recent study by MYOB has revealed that ‘only’ 19% of Australian SMEs are currently utilising AI in their operations. However, an additional 21% plan to integrate AI into their businesses at some point.

While this may seem low, it’s worth noting that this works out to be one in five SMEs, which equates to roughly 500,000 businesses in Australia.

The research — made up of 1,012 SME owners and operators — found that AI adoption in these businesses has been a relatively recent trend. Unsurprisingly, 90% of them only started within the last year. This lines up with the release of OpenAI in November 2022, which kicked off a global surge in generative AI interest and adoption in particular.

Since then, most major players in the international tech space have rushed to get involved — or upped their advertising.

So to have that many Australian SMEs already aboard the AI train in such a short period of time is quite significant.

According to the respondents, the effect of this technology is notable, with 88% reporting time-saving benefits and 81% observing increased productivity. LinkedIn data also revealed that SMEs were saving “hundreds” of hours in productivity by embracing AI earlier this year.

The survey also revealed that the most popular areas of AI application in SMEs have been social media and marketing post creation (49%), copywriting for marketing materials and press releases (34%), technical document composition (25%), and market and trend analysis (25%).

Emma Fawcett, MYOB’s general manager for SMEs, highlights the role of free and accessible generative AI tools, like ChatGPT, in introducing small business owners to AI capabilities.

“The research indicates that SMEs know AI has the potential to help them, and those that have adopted it can see improvements in productivity and timesaving. However, there are still barriers to overcome, including feeling that they don’t know enough about AI or have concerns about the costs associated with implementing new systems,” Fawcett said.

And this is certainly a fair concern. While big tech companies are offering free AI tools and services, paid extras are becoming increasingly normalised.

On top of that, industry experts are already warning SMEs about AI bill shock as time goes on — similar to what happened with Cloud services.

Interestingly, 44% of respondents believe AI will significantly impact their industries in the next five years, underscoring the need for SMEs to familiarise themselves with available AI tools to enhance business efficiency.

The study also sheds light on the potential for AI to reduce overhead tasks, which currently consume more than eight hours weekly for 11% of respondents. If these tasks were automated, 44% of business owners would focus on growth, 31% would opt for rest, and 24% would innovate or develop new products and services.

“I’d encourage all small business owners to look at what’s available in their industry, talk to other business owners about how they’re using AI, and don’t be afraid to take the plunge. It doesn’t have to be a significant time or cash investment, but it’s worthwhile knowing what’s on offer and how it can help,” Fawcett said.

We’d also recommend keeping an eye on developments in the regulation space. As we reported in our latest AI column, Neural Notes, Australia’s biggest regulators have joined forces in this space. And that’s important for SMEs utilising AI because they need to know that their assets are protected and that they’re not infringing on anybody else’s.