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What The Business Show revealed about AI adoption among SMBs

AI featured heavily in discussions at The Business Show, yet the responses collected painted a more nuanced picture of readiness and capability. Small businesses are highly motivated to adopt AI and remain optimistic about what it can deliver. Under that enthusiasm sits a market still clarifying where AI belongs in daily operations and how to adopt it in a structured and safe way.

SMBs feel ahead of the curve, but confidence outpaces capability

42% of respondents believe they are ahead of most businesses in their AI maturity, with 30% saying they are about the same. Confidence levels were also high, with 45% describing themselves as very confident in their ability to adopt AI and another 33% reporting they were somewhat confident.

That confidence is a strong foundation although external research suggests it masks a significant operational gap. Deloitte Access Economics confirms that despite rising ambition, a large proportion of Australian SMBs remain at the most basic level of AI maturity. The hurdle is not motivation. It is the capability, structure and roadmap required to convert interest into measurable outcomes.

Use cases are emerging, but clarity is still forming

When attendees were asked what task AI could take off their plate, only 12 open-text responses were received. These ranged across scheduling, billing, workflow efficiency, client calls, customer satisfaction, idea generation and financial management. The range shows curiosity and willingness to explore but limited clarity on where AI can deliver the most value.

Findings from the Australian Small Business AI Report by BizCover confirm that the barrier for many businesses is not willingness. It is clarity. Owners need more structured guidance to move beyond broad experimentation and pinpoint the specific workflows where AI can create meaningful ROI. The diversity of responses at the event reflects a market ready to experiment without a consistent strategic direction.

Barriers reflect practical operational concerns

When respondents were asked about the biggest barrier to adopting AI, 42% selected cost as their main concern. Another 30% selected security or compliance worries and 24% highlighted lack of knowledge or training. Limited time, resources and uncertainty about where to start were also mentioned.

These concerns mirror national trends. Research from the UTS Human Technology Institute found that SMEs are highly concerned about data protection and privacy risks when trialling new platforms. Their findings also highlight a clear need for better education, skills development and operational support. That insight reinforces a practical truth. Successful AI adoption must be built on clear governance, risk management and expert guidance that helps businesses close internal knowledge gaps.

Motivations are grounded in day-to-day efficiency

When asked why they want to use AI, 55% selected saving time on repetitive tasks and 52% selected reducing costs. Other responses referenced improved decision-making, competitiveness and business growth.

These motivations align with broader national patterns. Research from the CSIRO National AI Centre shows that operational efficiency and time savings are among the primary benefits reported by businesses adopting AI. Efficiency is typically the first step although focusing exclusively on time savings can limit potential gains. The real opportunity lies in using the time freed to improve decisions, strengthen competitiveness and reshape business models for growth.

Perceived readiness is higher than practical readiness

When asked about their readiness to adopt AI, 55% described themselves as actively investing in and scaling AI within their business and 21% said they were watching and waiting. Others described themselves as experimenting, cautious or seeing limited relevance.

When that sentiment is considered alongside the barriers and the limited number of clearly defined use cases, the picture becomes more consistent. Operational readiness remains in early development. The UTS Human Technology Institute identifies this as a common pattern where confidence runs ahead of structure and capability. The Microsoft and Tech Council of Australia AI Pulse Check report supports this view, noting that 46% of companies have not documented their AI strategy and 80% have not defined the roles and responsibilities required to manage AI. Those structural gaps limit the ability to scale AI effectively.

SMBs need a clear, safe and structured starting point

The recurring insight from The Business Show is the need for guided, low-risk adoption pathways. Respondents were curious and motivated yet still forming clarity on where to begin, which tools to choose and how to balance cost, value and risk.

The National AI Centre’s new Guidance for AI Adoption recognises this need by providing frameworks, tools and templates to help businesses manage AI safely and responsibly. The patterns observed at the event reflect this national requirement. SMBs want to realise meaningful efficiency gains and business improvements yet they need structure and support to progress from early interest to confident adoption.

Small businesses across Australia are ready to use AI and remain optimistic about what it can unlock. Many are still identifying where it fits within their operations and which steps will set them up for success. The opportunity now is to guide SMBs from curiosity to practical, cost-sensible and safe adoption.

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In summary

  • AI enthusiasm is strong among SMBs yet clarity around practical adoption is still forming
  • Barriers highlight cost, skills and risk rather than scepticism
  • Motivations are operational and efficiency focused
  • SMBs benefit most from a clear and structured adoption pathway

References

BizCover (2025) The Australian Small Business AI Report 2025, BizCover. Available at: https://www.bizcover.com.au/ai-transforming-australian-small-business-sector/ (Accessed: 26 November 2025).

CSIRO (2025) Australia’s AI Ecosystem: Growth and Opportunities, CSIRO National AI Centre, Canberra. Available at: https://www.csiro.au/-/media/D61/AI-Ecosystem-Momentum-Report/23-00010_DATA61_REPORT_NAIC-AustraliasAIEcosystem_WEB_230220.pdf (Accessed: 26 November 2025).

Deloitte Access Economics (2025) The AI edge for small business, Deloitte Access Economics, Australia. Available at: https://www.deloitte.com/au/en/about/press-room/ai-edge-small-business-increased-smb-ai-adoption-can-add-44-billion-australias-economy-251125.html (Accessed: 26 November 2025).

Microsoft and Tech Council of Australia (2025) AI Pulse Check 2025, Microsoft Australia. Available at: https://www.microsoft.com/en-au/news/2025/04/16/ai-pulse-check-2025-report-reveals-australian-companies-accelerate-ai-adoption-but-significant-strategy-and-governance-gaps-remain/ (Accessed: 26 November 2025).

National AI Centre (2025) Guidance for AI Adoption, Australian Government Department of Industry, Science and Resources. Available at: https://business.gov.au/news/new-guidance-helps-australian-businesses-adopt-ai-safely-and-responsibly (Accessed: 26 November 2025).

UTS Human Technology Institute (2025) In their words: perspectives and experiences of SMEs using AI, Safe Artificial Intelligence Adoption Model (SAAM). Available at: https://www.uts.edu.au/news/2025/02/hti-report-reveals-ai-exceeding-expectations-smes-many-face-range-adoption-barriers-they-need-help-overcome (Accessed: 26 November 2025).