More Australian businesses are embracing artificial intelligence (AI) to enhance productivity and decision-making, according to the latest data released by the federal government.
The Australian AI Adoption Tracker, unveiled by Minister for Industry and Innovation and Minister for Science Tim Ayres, shows that 41 per cent of small and medium enterprises (SMEs) are now adopting AI – an increase of five percentage points since the previous quarter.
The data, compiled through monthly surveys of over 400 Australian businesses, provides a snapshot of AI uptake across industries. It shows a growing awareness of the benefits of the technology, with 22 per cent of businesses reporting faster decision-making and 18 per cent citing improved productivity.
Services and retail sectors are currently leading AI adoption across most states and territories. Notably, the share of businesses unaware of how to use AI has dropped to 21 per cent.
The government-developed tracker is part of a broader push to support responsible and effective AI integration in the private sector.
It was created by the National AI Centre within the Department of Industry, Science and Resources, in collaboration with research firm Fifth Quadrant.
Minister Ayres said the government is committed to ensuring Australian businesses are well-positioned to seize opportunities presented by emerging technologies.
“Australia needs to make the most of the opportunities that artificial intelligence and other emerging technologies like robotics and quantum provide,” Minister Ayres said. “If we get the balance right, it will mean higher living standards for all Australians.”
The AI Adoption Tracker is designed to inform the development of the National AI Capability Plan, which aims to strengthen Australia’s competitiveness and grow its AI industry.
This includes the establishment of AI Adopt Centres to help upskill SMEs and initiatives such as a government-backed micro skills course, Introduction to Artificial Intelligence, delivered through TAFE NSW.
Executive Director of the National AI Centre Lee Hickin welcomed the findings, saying they reflect growing momentum in Australia’s AI journey.
“This tracker makes clear the appetite for Australia to be a leader in AI adoption is growing, and I look forward to supporting business and industry on this journey,” Hickin said.
Industry leaders are also seeing tangible benefits. Paul Foster, Chief Executive of George Weston Foods, said AI is delivering real operational value.
“AI is adding real value across our operations at George Weston Foods—from ensuring compliance to forecasting stock needs and supplier demands. It’s helping us respond faster and deliver more reliably for our customers,” Foster said.
To further explore how AI and smart ERP systems are reshaping the manufacturing landscape, SAP, in partnership with Australian Manufacturing, will host a webinar titled “Unleashing the Power of Smart ERP: How AI is Redefining Manufacturing in Australia.”
The session will explore how AI and ERP technologies are helping manufacturers drive growth and stay competitive. Register now to secure your spot.
