Only 5% of Australian Small Businesses Use AI Widely, New Report Finds

Published 2026-11-08

A new report from the Tech Council, published on October 22, 2026, shows that only 5% of Australian small and medium-sized enterprises (SMEs) use artificial intelligence (AI) on a broad scale. The findings suggest that most small businesses in Australia have not yet adopted the technology in a significant way, even though it is becoming more common around the world.

The report also looks at the possible benefits of AI for small businesses. According to the Tech Council's modelling, businesses that make greater use of AI could gain an average opportunity of A$136,000 each year. The figure is an estimate based on the council's calculations, not a measured result, so it shows what could be possible rather than what has already happened.

The gap between the potential benefits and the current level of use raises questions about how small businesses can be supported. Many SMEs may face barriers such as cost, limited time, or a lack of skills and knowledge about AI tools. The report does not describe specific government programs or policy changes, but its findings may be useful for business owners, advisers and policymakers who want to understand how technology is being used across the Australian economy.

Overall, the report presents a clear picture: AI is widely discussed, but its broad use among Australian small businesses remains limited. Further research and updates will show whether adoption grows in the coming years.

Sources: Quasa.io

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