Australian businesses boost AI adoption by 5 per cent

More Australian businesses are embracing artificial intelligence to enhance productivity, with 41 per cent of small and medium enterprises now adopting the technology.

Industry and Innovation Minister Tim Ayres (pictured) released the latest AI Adoption Tracker data on Tuesday, showing a 5 per cent increase in SME adoption from the previous quarter.

The interactive data platform surveys more than 400 Australian businesses monthly to track how they use AI and its impact on operations.

The tracker revealed 22 per cent of businesses reported improvements in decision-making speed, while 18 per cent highlighted optimised productivity as key benefits.

Services and retail businesses recorded the highest adoption rates, with most states and territories showing increases. The proportion of businesses unaware of how to use AI fell to 21 per cent.

“Australia needs to make the most of the opportunities that artificial intelligence and other emerging technologies like robotics and quantum provide,” Ayres said.

“If we get the balance right, it will mean higher living standards for all Australians.”

The findings support development of a National AI Capability Plan designed to build Australia’s competitive advantages and grow the industry.

The plan will expand existing business support including AI Adopt centres to upskill SMEs and initiatives by the National AI Centre, such as the “Introduction to Artificial Intelligence” micro skill course delivered through TAFE NSW.

National AI Centre executive director Lee Hickin said the tracker demonstrated growing appetite for Australia to lead AI adoption.

George Weston Foods chief executive Paul Foster said AI was adding value across operations from ensuring compliance to forecasting stock needs and supplier demands.

Picture: credit Australian Labor Party