Read about our methodology

The AI Adoption Tracker measures trends in AI adoption among small and medium-sized enterprises (SMEs) on a monthly basis, starting from May 2024. 

We use an independent research provider, Fifth Quadrant, to collect our data. Fifth Quadrant carries out research through surveys that we co-designed. They collect data from 400 completed surveys each month using an Australia-wide panel of SMEs. 

The tracker is not a longitudinal study. Different SMEs respond to the survey questions each month.

Respondents

Australian business owners or financial decision-makers from SMEs respond to the survey. The different business sizes that Fifth Quadrant surveys are:

  • 0–4 employees
  • 5–19 employees
  • 20–199 employees
  • 200–500 employees.

The businesses that participate in the survey come from different industry sectors. Accredited research panels make sure the sample represents the population across states and territories. The data is weighted by industry, state and number of employees to reflect the national distribution of businesses.

Definitions

In the survey, we define artificial intelligence (AI) as the technology that enables computers and machines to simulate intelligent behaviour. This includes the ability to perform tasks that typically require human intelligence, such as recognising patterns, making decisions, and solving problems.

SMEs may use AI to:

  • automate routine tasks
  • analyse data 
  • improve customer interactions through chatbots or virtual assistants
  • optimise operations
  • improve productivity and decision-making.

Data limitations

When there are less than 10 data points, we’ve noted there is insufficient data to display in the dashboards.

We collect and display industry-specific data on a quarterly basis rather than month-by-month.

What we ask SMEs

The surveys ask SMEs 4 questions about their AI adoption. They include questions about:

  • levels of awareness and adoption of AI technologies among SMEs
  • types of AI applications SMEs are using
  • challenges that SMEs are facing in adopting AI technologies
  • business outcomes that SMEs are achieving through AI adoption.

Survey question sets

1. Which of the following statements best describes your organisation’s use of AI?

  1. We currently use AI broadly across our business
  2. We currently use AI within a limited part of our business
  3. We are in the process of implementing AI within our business
  4. We intend to implement AI within our business within the next 12 months
  5. We don’t intend to implement AI within our business within the next 12 months
  6. We are not aware of how to use AI within our business
  7. Don’t know

2. Please indicate the level of awareness for each of the following AI applications that you may use or consider for your business. 

  1. A generative AI assistant: a personal AI assistant to help you automatically generate tailored content, helping boost creativity and get more done efficiently.
  2. Customer support and chatbots: implementing AI-powered chatbots on websites or messaging platforms to handle customer inquiries, provide basic support, and assist with order processing. This can improve response times and reduce the need for human intervention.
  3. Predictive analytics: using AI to analyse sales data, customer behaviour, and market trends to predict future demand making informed business decisions.
  4. Marketing automation: leveraging AI for targeted marketing campaigns, personalised recommendations based on preferences and behaviour patterns.
  5. Data entry and document processing: automating data entry tasks, document processing, and form extraction using tools to save time and reduce errors.
  6. Sales forecasting: utilising AI algorithms to forecast sales based on historical data, market conditions, and external factors, helping SMEs make accurate revenue projections.
  7. Fraud detection: implementing AI systems to detect anomalies and patterns indicative of fraudulent activities in financial transactions, thereby reducing risks and losses.
  8. Employee recruitment and HR analytics: using AI for resume screening, candidate matching, and workforce analytics to streamline recruitment processes and optimise workforce management.
  9. Supply chain optimisation: applying AI to optimise supply chain logistics, demand forecasting, inventory management, and supplier selection to reduce costs and improve efficiency.

Response options:

  • Not aware
  • Aware, but not likely to adopt
  • Aware and likely to adopt
  • We currently use in our business.

3. Do you agree that AI can help you achieve the following business outcomes?

  1. Enhanced resource optimisation and productivity
  2. Improved customer experience/engagement
  3. Improved employee experience/engagement
  4. Increased revenue/profit/cashflow
  5. Improved quality control
  6. Stronger security, data protection and fraud detection
  7. Faster access to accurate data to inform decision making
  8. More agile product and service innovation
  9. Enhanced engagement and response to marketing activities
  10. More effective supply chain and supplier management

Response options:

  • Unlikely
  • Possibly 
  • Definitely 
  • Don’t know

4. To what extent do you agree or disagree with the following statements relating to AI?

  1. AI offers compelling use cases that can transform our business 
  2. It’s hard to integrate AI with our existing IT systems.
  3. We are well-prepared to handle any cyber security and privacy issues that might arise with AI.
  4. We don’t have the funding to invest in AI.
  5. We trust AI to make decisions without significant ethical or bias issues.
  6. We don’t have the expertise or skills in the business to implement AI.
  7. Our staff are enthusiastic and supportive of using AI in our operations.
  8. We are confident in managing the regulatory, compliance, and governance issues related to AI.
  9. AI is moving too fast so it’s difficult to know when to invest.
  10. We are proactive and stay informed about the opportunities and challenges with AI.
  11. AI solutions will provide my business with a competitive edge.

Response options:

  • Strongly disagree
  • Somewhat disagree
  • Neutral
  • Somewhat agree
  • Strongly agree
  • Don’t know