Australia risks widening the gap between small and large businesses in the adoption of artificial intelligence unless more targeted support is provided to help small businesses use the technology safely and effectively, the Council of Small Business Organisations Australia (COSBOA) has warned.
The call follows Treasury advice warning that Australia could miss out on the economic benefits of AI unless businesses move beyond basic adoption and make more substantial changes to their operations.
In a news release, COSBOA said Australia’s 2.7 million small businesses should be central to efforts to increase meaningful AI adoption, with greater support needed to build awareness of practical applications and improve AI literacy and capability.
Research by the National AI Centre found that 43 per cent of Australian SMEs had adopted AI to some degree, while COSBOA’s own research found that 14 per cent of small businesses had integrated AI into their business operations or services.
COSBOA chief executive Skye Cappuccio said small business owners faced different challenges from larger organisations when adopting new technologies.
“Small business owners are adaptable and entrepreneurial. The problem isn’t a lack of willingness to innovate. It’s that they are incredibly time-poor and often don’t know where to start,” Cappuccio said.
“Many are already experimenting with AI for things like social media and marketing, but that is very different from embedding it into business processes in ways that genuinely save time, reduce administrative burden and improve productivity.”
Cappuccio said governments had invested in programs supporting small business AI adoption, but argued that a more coordinated effort was needed to increase uptake at scale.
“For many small business owners, AI still doesn’t feel relevant to their business. Others lack confidence in their ability to use it or are unsure whether they can use it safely,” she said.
“That is why small businesses need practical advice and guidance they can trust. That support needs to be relevant to their industry and their business, and genuinely designed to help them, rather than sell them a particular product.”
COSBOA said immediate priorities should include improving awareness of AI’s potential applications across industries and strengthening the capability of small businesses to use the technology to improve efficiency.
“Large businesses are already investing heavily. They can hire specialist skills, develop their own AI tools and agents, train their staff and measure the productivity gains,” Cappuccio said.
“Small businesses cannot be expected to make that transition in the same way or at the same pace without an initial hand to adapt.”
She said the next phase of the Federal Government’s National AI Plan should focus on supporting small businesses to expand their use of AI.
“If we get this right, AI can help small businesses become more productive and competitive. If we get it wrong, we risk creating an even greater divide between large and small businesses,” Cappuccio said.
“The Government’s own National AI Plan promised that the next phase of work would focus on helping small businesses scale their use of AI. We want to see that phase delivered, and funded, with awareness and AI literacy at its centre.”
COSBOA has also previously called for policies that encourage digital adoption among small businesses and for a light-touch regulatory approach to avoid creating additional barriers to the uptake of emerging technologies.
