Insights
Am I falling behind if I haven't started with AI?
By the numbers, no. The Australian Bureau of Statistics found 12% of businesses used AI in 2024-25, and about 11% of small and micro businesses. The National AI Centre's survey counts 43% of SMEs at some level of adoption, including one-off use. More than half have yet to adopt AI meaningfully.
Why do the two numbers differ?
The two surveys ask different questions of different samples. The ABS asked nearly 7,000 businesses of all sizes between October 2025 and February 2026 whether they used AI in their workplace. The National AI Centre's SME AI Pulse surveys at least 400 SME owners every month and asks them to describe their own stage of adoption.
| Measure | ABS Business Characteristics Survey 2024-25 | National AI Centre SME AI Pulse, Dec 2025 to Feb 2026 |
|---|---|---|
| Who | Nearly 7,000 businesses, all sizes | At least 400 SME owners and decision-makers per monthly wave |
| Question | Does the business use AI in its workplace | Self-described stage of AI adoption, including limited use |
| Result | 12% of all businesses. About 11% of small and micro. 22% of medium. 35% of large | 43% of SMEs for the quarter. 44% in February 2026 |
| Published | 25 June 2026 | 7 May 2026 |
The ABS notes its question does not measure intensity of use. The National AI Centre counts limited, one-off use. Neither number tells you how much value businesses get.
Which industries lead?
Adoption varies by industry in both surveys. The ABS reported the highest adoption in information, media and telecommunications at 38%. Professional, scientific and technical services and financial and insurance services each reached 24%. The National AI Centre found health and education and services sectors above 50% of SMEs adopting. Construction and agriculture were below 30%.
If you run a professional services firm, your sector sits at the higher end of ABS adoption. At 24%, three in four businesses in your sector still did not report AI use in 2024-25.
What holds businesses back?
Trust, relevance and not knowing where to start are the three barriers the National AI Centre reports. Around 65% of non-adopting businesses cited distrust in AI decision-making or a strong preference to keep human control. 54% said AI is not relevant to their business. 19% said they do not know how to use AI, up 2 points on the previous quarter.
If one of these describes you, you are in the majority of non-adopters. The National AI Centre describes the 19% who do not know where to start as businesses that are not opposed to AI and lack a clear entry point.
What are adopters doing with it?
Adopters start with low-risk, productivity tasks. Among businesses using or planning to use AI, content generation and data analytics each reach 54%. Cybersecurity and threat detection reaches 48%. The National AI Centre notes these share a common thread: they are productivity-oriented and relatively low-risk to experiment with.
Among businesses using AI, the most common safeguard is checking outputs before they affect customers. Approximately half have that in place. Transparency with customers about AI use lags.
What would falling behind look like?
The measured gain from AI is modest on average, so a late start costs less than headlines suggest. A Danish study of 25,000 workers found average self-reported time savings of 2.8% of work hours. See how many hours AI saves for the full evidence.
Use these three checks to judge your own position, because a national average cannot do that. They come from Clockwise's operating experience and are not drawn from a dataset.
- Repeat text work. Do you or your staff spend hours each week on drafting, summarising or reformatting the same kinds of documents?
- Client expectations. Have clients asked about turnaround times or AI use in your work?
- Unmanaged use. Is anyone in your business already using AI tools without agreed rules? See the free government AI policy template.
If you answered yes to any, start small. If you answered no to all three, a later start carries little cost.
What to do next
Pick one task and test it for 30 minutes a week. See what to do with AI in 30 minutes a week and which task to start with. The Clockwise Intensive is one focused hour with Megan, one-on-one on Google Meet, on where AI fits in your business and which process to hand over first. It costs $550 AUD.
Book the Clockwise Intensive →
Frequently asked questions
What percentage of Australian small businesses use AI?
The Australian Bureau of Statistics reported about 11% of small and micro businesses used AI in 2024-25 and 12% of all businesses. The National AI Centre's SME survey reported 43% of SMEs at some level of adoption for December 2025 to February 2026. The surveys use different definitions and samples.
Why do small businesses not use AI?
The National AI Centre found around 65% of non-adopting SMEs cite distrust in AI decision-making or a preference for human control. 54% say AI is not relevant to their business, and 19% do not know how to use it.
About the author
Megan Hogan is the founder of Clockwise and works as a fractional COO inside small to medium businesses. She spent seven years at Optus and has led customer experience transformation and AI-enabled contact centre implementation.
Editorial standards
Statistics come from the Australian Bureau of Statistics and the National AI Centre, each dated. The three checks above are Clockwise's own method and are labelled as such. This article is general information.
Sources and dates
All checked 29 October 2026.
- Australian Bureau of Statistics, Business adoption of Artificial Intelligence accelerates in 2024-25 (media release). 25 June 2026. https://www.abs.gov.au/media-centre/media-releases/business-adoption-artificial-intelligence-accelerates-2024-25
- Australian Bureau of Statistics, Characteristics of Australian Business, 2024-25. Released 25 June 2026. https://www.abs.gov.au/statistics/industry/technology-and-innovation/characteristics-australian-business/2024-25
- National AI Centre, AI adoption insights: December 2025 to February 2026. 7 May 2026. https://www.ai.gov.au/news-and-insights/blog/ai-adoption-insights-december-2025-february-2026
- Humlum and Vestergaard, Large Language Models, Small Labor Market Effects. Becker Friedman Institute Working Paper 2025-56, May 2025. https://bfi.uchicago.edu/wp-content/uploads/2025/04/BFI_WP_2025-56-3.pdf