How many Australian small businesses use AI in 2026?
Latest figures on AI adoption by Australian SMEs in 2026 from the National AI Centre and NAB, what's holding businesses back, and what it means for you.
Short answer: roughly four in ten. The National AI Centre’s tracker found 44% of Australian SMEs reported some level of AI adoption in February 2026, and NAB’s research released in April 2026 found 42% of SMEs already use AI, with another 14% planning to. Adoption is lower in construction, where fewer than 30% of businesses are adopting AI.
The numbers, with sources
National AI Centre (quarterly insights, December 2025 – February 2026) (NAIC): - 44% of SMEs reported some level of AI adoption in February 2026, “the strongest result in several months”. - 43% averaged across the December–February quarter, down slightly from 45% the previous quarter. - Broad adoption, where AI is embedded across multiple parts of the business, reached its highest level in 7 months, while limited one-off use declined.
NAB Economics (released 20 April 2026) (NAB): - 42% of SMEs already use AI. - 14% plan to adopt it. - 44% are not using AI. - Top uses include admin, marketing and decision-making, and the biggest win reported is time back for business or family.
The two surveys ask different questions of different samples, so don’t add them together. They point the same way, though: a bit over four in ten.
Why the rest aren’t using it
The National AI Centre lists three barriers (NAIC):
- Trust. Around 65% of non-adopting businesses cited distrust in AI decision-making or a strong preference to keep human control over their processes.
- Relevance. 54% of non-adopters said AI isn’t relevant to their business. The gap is biggest in Construction and Agriculture, where fewer than 30% of businesses are adopting AI.
- Not knowing where to start. 19% of SMEs said they don’t know how to use AI in their business, up 2% on the previous quarter.
What adopters actually use it for
Among businesses using or planning to use AI, content generation and data analytics lead (54% each), followed by cyber security and threat detection (48%) (NAIC). The Centre notes these are productivity-focused and relatively low-risk uses.
The safeguard gap
About half of SMEs using AI check outputs before they affect customers, which is the most common safeguard. Being open with customers about AI use, and having a way for customers to raise concerns, “lag significantly” (NAIC).
What I take from this (opinion)
- The trust barrier is reasonable. I don’t think you should hand control to AI either. The answer is a setup where AI drafts and you approve, which keeps you in control.
- “Not relevant” usually means “nobody’s shown me”. The National AI Centre says the same thing: businesses need to see themselves in the story of AI adoption (NAIC). For trades, the relevant part is the office, not the tools.
- If you’re in the 19%, you’re not behind for long. Free courses and guides exist. See business.gov.au’s AI page.
What this means if you’re a Gold Coast or Tweed business
My opinion: if roughly four in ten SMEs are using AI in some form, your competitors may be among them, but most aren’t using it deeply yet. The National AI Centre says the shift is toward broader use by businesses that already started (NAIC). For a trade or home services business, that means there’s still time to get the office admin sorted properly rather than rushing. Start with one job, keep a person approving, and build from there.
Also worth knowing: NAB’s research points to the National AI Centre’s “AI Adopt” and “Digital Solutions” programs for tailored advice (NAB).
FAQ
What percentage of Australian small businesses use AI? The National AI Centre found 44% of SMEs reported some AI adoption in February 2026. NAB’s April 2026 research found 42% use AI and 14% plan to.
Why don’t more small businesses use AI? The National AI Centre found the top barrier is trust (about 65% of non-adopters), followed by seeing AI as not relevant (54%) and not knowing where to start (19% of SMEs).
Which industries use AI least? Construction and Agriculture, where fewer than 30% of businesses are adopting AI, according to the National AI Centre.
What do small businesses use AI for most? Content generation and data analytics (54% of adopters each), then cyber security (48%), per the National AI Centre.
Next step
If you want to know which jobs in your business are worth handing to AI, book a free AI audit. It takes 1–2 hours, there’s no obligation, and you walk away with a written plan of 3–5 tasks, whether you work with me or not.
Sources
- https://www.ai.gov.au/news-and-insights/blog/ai-adoption-insights-december-2025-february-2026
- https://www.nab.com.au/news/technology-ai/small-business-in-the-driver-s-seat-of-australia-s-ai-shift
- https://business.gov.au/online-and-digital/artificial-intelligence
