AI adoption surges among Australian SMEs

New research published by Intuit suggests artificial intelligence is moving rapidly from an experimental technology to a core operational tool for small and mid-sized businesses (SMEs) in Australia. The findings indicate that AI adoption is increasingly associated with productivity gains, revenue growth and, notably, employment expansion rather than widespread workforce displacement.

The study analysed anonymised administrative data from more than 5.3 million QuickBooks businesses alongside survey responses from over 34,000 SMEs across Australia, the United States, the United Kingdom and Canada. The results highlight both the accelerating pace of AI adoption and the growing role of AI-enabled tools within everyday business operations.

In Australia, regular AI use among SMEs rose sharply from 40% in July 2024 to 69% in January 2026, while daily usage increased from 9% to 28% during the same period. The figures place Australia broadly in line with other major English-speaking markets, including the UK and Canada, though the speed of adoption has been particularly notable.

More significantly, the research challenges concerns that AI adoption will automatically lead to large-scale job losses. Among Australian businesses already using AI, 19% reported employment growth linked to AI implementation, compared with only 6% that said staffing levels had declined. Similar trends were observed across other surveyed markets.

The study also found that 79% of Australian AI users reported productivity improvements, up substantially from 37% in mid-2024. Around 43% said AI had contributed to higher revenues, while roughly a quarter reported lower operating costs.

AI adoption has become especially prominent in functions such as accounting, administration, customer communication and marketing. Around 12% of Australian businesses surveyed said AI now forms a core part of their operational model, suggesting that many SMEs have progressed beyond limited trials and are embedding AI into routine workflows.

However, barriers to wider adoption remain significant. Privacy and security concerns were cited by 39% of Australian respondents, higher than in the US, UK and Canada. Limited understanding of AI capabilities and fears of incorrect implementation also emerged as major concerns.

Suzy Nicoletti, Regional Vice President for APAC at Intuit, said the issue was increasingly about confidence rather than access. She noted that productivity and revenue gains among businesses that had integrated AI effectively were substantial, but many smaller firms remained hesitant because of uncertainty around security, practical implementation and lack of trusted guidance.

The findings also contribute to a broader policy discussion around digital adoption support for SMEs. While Australia has introduced measures such as the permanent AUD $20,000 instant asset write-off and investment in the Consumer Data Right framework, direct incentives for AI adoption remain limited.

Andrew McKellar, Chief Executive Officer of the Australian Chamber of Commerce and Industry, said the data reinforced how important productivity-enhancing technologies had become for smaller businesses facing rising operational costs and time pressures.

The report suggests AI is increasingly being viewed not simply as a technology upgrade, but as a competitive necessity for SMEs seeking operational efficiency, growth and long-term resilience in an increasingly digital business environment.