Finance and insurance SMEs lead AI adoption, but sector gaps widen
Finance and insurance small and medium-sized enterprises are adopting artificial intelligence at rates well above other industries, according to research from National Australia Bank. The NAB SME Business Insights report found that 64% of finance and insurance SMEs use AI, compared with 42% across all industries surveyed.
The research reveals uneven adoption patterns. Property services leads at 69% adoption, followed by finance and insurance at 64% and business services at 61%. At the lower end, transport and storage reports 21% adoption, retail 22%, and manufacturing 35%.
Where finance and insurance SMEs apply AI
Finance and insurance businesses direct AI toward operations and compliance work rather than customer-facing functions. Among those using AI in the sector, 65% apply it to operations and logistics. This reflects the industry's complex workflows and regulatory demands.
Cost reduction and efficiency rank as the primary perceived benefit for finance and insurance SMEs at 29%-the highest proportion of any industry. The sector links this to labour-intensive administrative tasks, regulatory requirements, and workflows suitable for partial automation.
Across all SMEs surveyed, marketing and sales dominate AI use at 51% of adopters, followed by operations and logistics at 39% and customer service at 25%. Finance and insurance stands apart by prioritising automation for risk, compliance, and administrative support.
Sector divides reflect digital capability
Industries with established digital systems and data-heavy operations adopt AI faster. Those with legacy systems, narrow margins, and fragmented supply chains move more slowly. Retail shows the widest resistance: 64% of retail SMEs report no AI use.
Across the SME population, 44% do not use AI and 14% plan to adopt it. Among non-users, 16% say they do not expect AI to benefit their business, citing concerns about practical value, limited digital capability, and worries about data protection and workforce impact.
What this means for insurers
Rising AI adoption in finance and insurance, combined with growing use across other SME sectors, creates new considerations for insurers. These include underwriting AI-enabled processes and data flows, revising product coverage design, and supporting clients on governance, resilience, and regulatory obligations.
SMEs appear willing to adopt AI where it feels manageable and relevant, but many seek guidance on risk and uncertainty. Insurance firms will need to help clients understand AI Agents & Automation in their operations while addressing governance and compliance requirements specific to their industry.
Pete Steel, NAB group executive for digital, data and AI, said the shift from exploration to systematic use creates productivity opportunities. "We're seeing a clear shift from curiosity to practical use, with more businesses using AI to save time, reduce admin burdens, and make better decisions," he said.
For more on how AI applies to your sector, see AI for Insurance.
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