SMEs adopting AI could give the national economy a $93 billion boost, according to research from the Tech Council of Australia.
Small businesses drowning in admin could save time and boost productivity by integrating artificial intelligence into everyday operations.
The average small or medium-sized business could achieve an estimated yearly productivity gain of $136,000 by adopting AI broadly and cutting time spent on administrative tasks, such as payroll and rostering, a report has found.
This could inject $93 billion into the national economy, the report by The Tech Council of Australia says.
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The research found 94% of small and medium-sized businesses using AI reported productivity improvements, while 54% of employees reported higher job satisfaction.
While these businesses employ nearly two-thirds of the country’s workforce, only one in four were using the technology and just five per cent were using it broadly.
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The research highlighted the untapped potential of AI, tech council chief executive Dr Kate Cornick said.
“There is a significant gap between what AI could deliver and what small businesses are currently getting from it,” Cornick said.
She said reducing time spent on administration could make a difference, particularly to businesses already buckling under rising costs and staffing pressures.
Regional businesses were behind those in metropolitan areas, Cornick said, urging government and industry to provide targeted support by building on existing programs.
A key finding highlighted that barriers hindering businesses from getting started included a limited understanding of AI, concerns about security and reliability and uncertainty about the return on investment.
Employment Hero co-founder and chief executive Ben Thompson said AI would take a “real weight” off small businesses.
“Ask a small business owner what tasks consume their week and they’ll say payroll, super, awards and compliance,” he said.
“Lift small business productivity and you lift the country’s.”
This article was first published by AAP.