HTI report reveals AI exceeding expectations of SMEs, but many face a range of adoption barriers that they need help to overcome

A new report by the University of Technology Sydney Human Technology Institute (HTI) has found that AI is exceeding the expectations of Australian small and medium enterprises (SMEs), but many face a range of adoption barriers that they need help to overcome.

In their words: perspectives and experiences of SMEs using AI is authored by HTI as part of the Safe Artificial Intelligence Adoption Model (SAAM), a consortium led by elevenM and funded by the Department of Industry, Science and Resources to build practical online tools and resources to help Australian SMEs capitalise on the benefits of AI while minimising exposure to risks.

The report surveyed 133 SMEs nationally. Analysing more than 300 comments from business leaders and employees, the findings reveal what is front-of-mind for those adopting and managing AI in the workplace.

Generative AI is the use case for Australian small and medium enterprises (SMEs) and is exceeding expectations, according to the majority of respondents.  But lower levels of AI awareness, a lack of accuracy and quality in AI outputs, and concerns around data risk remain key inhibitors.

The report reveals that generative AI solutions such as ChatGPT and Microsoft Copilot are proving most attractive to SMEs, with businesses turning to AI to develop content for social media, ad copy, blogs, formal reports, emails, and more. 

But when asked about AI risks, nearly half of the responses from SME leaders identified concerns around AI accuracy and identified the need for oversight and review practices.  Leaders also worried about data protection, including potential privacy issues related to the sharing of customer and private data with AI platforms.

The report also highlights that many SMEs feel limited in their awareness and familiarity with AI, and would value greater education, training and support.

Professor Adam Berry, HTI Deputy Director, said, "It is clear that Australian small and medium businesses are beginning to enthusiastically adopt generative AI, but in the process, they are confronting the real practical complexities of that adoption.  They are seeing poor quality outputs, worry about sharing data, and are navigating a difficult and fast-moving space. 

We can do more to provide simple, practical, useful support to those businesses so that they realise the promise of AI, without becoming exposed to its risks. - Professor Adam Berry, HTI Deputy Director

elevenM Director Melanie Marks said, “In order to help SMEs capitalise on the benefits of AI, we must develop easy to use tools and guidelines that help SMEs specifically manage the risks of AI. SAAM is exploring how we can take global best-practices and standards like Australia’s Voluntary AI Safety Standard and make them SME-friendly.”

Read the full report at SAAM.com.au

About the report:

“In their words: perspectives and experiences of SMEs using AI” – is authored by the UTS Human Technology Institute as part of the Safe Artificial Intelligence Adoption Model (SAAM) project. It was based on a survey of SMEs conducted in late 2024.

SAAM (saam.com.au) is building a set of simple online tools and practical resources to help Australian SMEs capitalise on the benefits of AI while minimising exposure to risks. SAAM is funded by the Australian Government Department of Industry, Science and Resources through the AI Adopt program and is delivered by a consortium led by specialist consultancy elevenM, in partnership with the UTS Human Technology Institute, the Australian Computer Society, Atlassian, KPMG, Microsoft and TDC Global.