Financial Hardship Slows AI Investment Among Australian SMEs
Recent data reveals a surprising trend: only 7% of Australian small- to medium-sized enterprises (SMEs) rank artificial intelligence (AI) as a top investment priority. This contrasts sharply with earlier predictions from late 2024 and early 2025, which expected a significant surge in AI adoption among small businesses.
The ScotPac SME Growth Index Report highlights that financial challenges are the primary reason behind this cautious approach. Despite a NAB survey earlier this year showing that 41% of SMEs planned to increase tech adoption and a third intended to boost AI and cybersecurity investments, many businesses are struggling to follow through.
Financial Constraints Create a Gap Between Plans and Action
One in three SMEs reported no plans to invest in new technologies, a figure that rises to nearly two-thirds among those experiencing declining revenue. This indicates a clear divide between ambition and financial reality.
ScotPac CEO Jon Sutton notes that while there is a strong desire among Australian SMEs to grow, cost pressures are holding many back. Interestingly, 9.5% of SMEs still see automation tools as a key investment area. Though automation isn’t always AI-driven, many automation processes do incorporate AI to improve efficiency.
Investment Focus Remains on Sales and Forecasting Tools
For SMEs in a healthier financial position, priorities focus on retention and growth. The top areas attracting innovation spending include:
- Sales and business development tools: Nearly 23% of SMEs are directing funds here to boost revenue generation.
- Business forecasting tools: 22% are investing in systems that improve forecasting and planning accuracy.
- Cloud CRM and embedded financing platforms: 16% consider these essential for managing customer relationships and streamlining payments.
The Role of Lenders and Brokers in Supporting Innovation
Jon Sutton emphasizes the importance of brokers and lenders in helping SMEs access finance for technology investments. Those who understand client needs and stay informed about finance options can play a critical role in supporting businesses ready to invest in productivity tools.
Specialist teams are available to assist business owners considering investments in automation, AI, or other technologies aimed at improving operational efficiency.
For finance professionals working with SMEs, understanding these shifting priorities and financial pressures is key to offering relevant advice and support. As AI adoption remains limited by cost concerns, guiding clients toward accessible tech solutions and tailored finance products will be crucial.
To explore how AI and automation tools can fit into SME growth strategies, consider reviewing practical resources and courses available at Complete AI Training.
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