Australia’s small businesses at risk of missing out due to limited adoption of AI

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A new report has found the adoption of artificial intelligence is accelerating across Australian businesses, but a growing divide is emerging between the largest organisations and their smaller and not-for-profit counterparts.

The 2025 AI Deployment and Governance Survey by the Governance Institute of Australia found uneven adoption, gaps in governance, insufficient training, and uncertainty about measuring AI’s return on investment as significant barriers preventing some organisations from harnessing AI’s potential.

A striking 93 per cent of respondents to the survey said they were unable to effectively measure return on investment for AI initiatives, while 88 per cent reported difficulties integrating AI with existing systems.

Governance Institute of Australia Chair, Pauline Vamos said the findings should serve as a stark warning about the possible impact to Australia’s economy.

“Limited AI adoption by smaller enterprises poses a tangible risk to the nation’s economic competitiveness and productivity given they account for 98 per cent of Australia’s business community,” Ms Vamos said.

“Organisations of all sizes should prioritise AI literacy, invest in training, and develop robust governance frameworks to harness AI’s potential safely and effectively.”

Key findings include:

  • Nearly 90% of survey respondents report AI use in their organisation.
  • Lack of training is hindering the effectiveness of AI deployment.
  • Almost half of respondents have received no AI training.
  • About two-thirds of organisations have yet to develop AI training programs.
  • Lack of knowledge and poor digital literacy are the biggest barriers to effective AI rollout.

“AI is spreading into all facets of business, trickling down from international software companies and being widely used across most organisations whether leaders realise it or not,” Ms Vamos said.

“While government support is crucial, business itself must take responsibility for bridging the AI divide.”

The survey forms part of a new report, sponsored by the National Artificial Intelligence Centre, PKF and Diligent, which features in-depth case studies and practical guidance from a range of organisations about their AI journeys, best practices and the role of government initiatives, including the Voluntary AI Safety Standard, in driving responsible AI use.

You can read the full report here.

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