AI Goes Mainstream: Four in Five Aussie Small Businesses Now Onboard

A growing number of small businesses in Australia are rapidly embracing artificial intelligence, with new research showing 80% are either already using AI or plan to within two years. According to the Australian Small Business AI Report 2025 by BizCover, AI has moved from a nice-to-have to a strategic imperative.

Key findings include:

• 62% say AI is important to daily operations, with 35% calling it “very important” or “essential”

• 46% would consider using AI instead of hiring or outsourcing

• Half (49%) worry AI could harm creative skills like writing and design

• However, 60% of small business owners see AI as a growth opportunity, only 12% feel their skills are at risk

In a national survey of 965 small business owners, 62% said AI is already important to their daily operations, while over a third (35%) described it as “very important” or “essential”.

“The narrative has shifted,” says Sharon Kenny, Head of Marketing at BizCover. “AI is no longer viewed as futuristic or niche—it’s becoming an everyday part of doing business, from marketing agencies to medical clinics.”

Service-based businesses are leading the way, with consulting, digital services and marketing firms using AI to streamline repetitive tasks, generate content, and enhance customer insights. But the wave is spreading—healthcare providers, retailers and trades are also onboarding AI to reduce admin and drive operational efficiency.

Importantly, business owners are not rushing to replace humans with algorithms. Only 13% think AI could fully replace both job roles and tasks, although nearly half (46%) said they would consider using AI instead of hiring or outsourcing in certain scenarios.

“AI is being seen more as a co-pilot than a replacement,” Kenny notes. “What’s exciting is that SMEs are blending human intuition and judgement with AI’s ability to analyse data, brainstorm, and make predictions.”

Still, concerns persist. Almost half (49%) of respondents are worried about the impact AI could have on creative skills like design and copywriting. And when it comes to adoption barriers, it’s not the cost, but a lack of AI literacy and uncertainty around data privacy that are slowing things down.

With 48% expecting AI to reshape workforce skills over the next five years, demand is growing for capabilities like critical thinking, communication and ethical decision-making—areas where human workers continue to outshine machines.

Despite the anxieties, 60% of business owners view AI as a clear growth opportunity. Only 12% fear their skills are becoming obsolete, and fewer still expect no impact at all.

Australia’s SME sector appears ready to adapt. “The biggest risk isn’t using AI badly—it’s failing to explore it at all,” Kenny says.

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