Boosting AI for Small-Business Could Add AU$44 b to Australia’s Economy

A​‍​‌‍​‍‌​‍​‌‍​‍‌ new report from Deloitte Access Economics, commissioned by Amazon, reveals that if Australia’s small and medium-sized businesses (SMBs) were to advance their use of artificial intelligence (AI) from basic to intermediate levels, the country could potentially contribute an additional AU$44 billion annually to its GDP.

The research involved more than 1,000 SMBs all over Australia. About two-thirds of businesses are reported to be using some form of AI; however, only 5 % of them are “fully enabled,” that is, AI is deeply embedded in the processes, the teams are trained, and data systems are well established. A firm moving from basic to intermediate AI use can expect to increase its profitability by 45 % approximately; if the firm goes from intermediate to fully enabled, the profits can be more than doubled.

So, what are the barriers? The main reasons are lack of awareness of where to begin, weak data/infrastructure systems, and scarcity of employee training. According to the report, a government-funded program may aid SMBs in the AI adoption process by the offering of incentives such as a 50 % tax deduction on AI investments for businesses whose turnover is below AU$50 million.

Key takeaway: The upside to AI is enormous for a country like Australia that has over two million SMBs responsible for generating more than half of the private sector GDP. The message to SMBs is that knowing how to start with AI is crucial at this moment, and even a slight step will bring good results. The message to policy-makers: if you provide support and incentives, the transition will be faster and the growth will be ​‍​‌‍​‍‌​‍​‌‍​‍‌unlocked.