AI Adopt Program: Government Funding for AI in Australia
The Australian Government is putting $17 million on the table to help SMEs adopt AI. It is called the AI Adopt Program, it sits under the National AI Plan, and it is one of the most practical funding opportunities available for businesses that want to move on AI but need help covering the cost.
Unlike broad innovation grants that fund everything from biotech to clean energy, this program is specifically about AI adoption. That means it covers implementation, upskilling, and getting your data ready. Not research. Not prototypes. Practical, real-world AI that makes your business run better.
This guide breaks down exactly what the AI Adopt Program is, who qualifies, what it funds, and how to put together an application that actually gets approved.
What Is the AI Adopt Program?
The AI Adopt Program is a $17 million federal initiative designed to accelerate AI adoption among Australian SMEs and not-for-profit organisations. It was announced as part of the National AI Plan and is administered through business.gov.au.
The thinking behind it is straightforward. The government knows that AI can drive productivity, but most small and mid-sized businesses do not have the budget, expertise, or confidence to adopt it on their own. The AI Adopt Program bridges that gap by funding the cost of getting AI into your operations, training your staff, and building the foundations you need to use it properly.
It sits alongside the National AI Centre, which provides free advisory services to businesses exploring AI. Between the funding from the AI Adopt Program and the guidance from the National AI Centre, the government is offering both the money and the support to help you get started.
Who Is Eligible?
The AI Adopt Program is targeted at businesses that stand to benefit most from AI but are least likely to adopt it without support. Here is what you need to qualify.
Business size
You must be a small or medium enterprise (SME) or a not-for-profit organisation. The program is not designed for large corporates or government agencies.
Australian ABN
You need an active Australian Business Number and must be operating in Australia. Foreign-owned subsidiaries may be eligible if they meet the other criteria.
Genuine AI adoption intent
You need to demonstrate a real business problem or opportunity where AI can help. This is not funding for research or experimentation. The government wants to see practical adoption that will improve your operations.
Co-contribution
Most grant programs require you to contribute a portion of the project cost yourself. Expect to co-fund between 25% and 50% of the total project, depending on the specific stream.
Not retrospective
You cannot claim funding for AI projects you have already completed. The program funds new adoption, implementation, or upskilling activities.
If you are unsure whether your business qualifies, the National AI Centre offers free preliminary guidance. It is worth having that conversation before you invest time in a full application.
What Does the AI Adopt Program Actually Fund?
The program covers four main areas. This is important because understanding what qualifies will help you shape your application around activities the assessors want to see.
AI implementation
Deploying AI tools and systems into your business operations. This includes software, integration, and configuration costs.
AI strategy and planning
Developing an AI adoption roadmap tailored to your business. This covers consulting, needs assessments, and identifying where AI will deliver the most value.
Upskilling and training
Training your team to use AI tools effectively. This includes formal training programs, workshops, and building internal AI capability.
Data readiness
Getting your data into a state where AI can actually use it. This covers data cleaning, migration, and establishing proper data management practices.
How to Apply
Applications are submitted through business.gov.au. The process is fairly standard for Australian government grants, but that does not mean it is quick. Expect to invest a few days preparing your application properly.
Step 1: Check eligibility. Before anything else, confirm you meet the criteria listed above. If you are unsure, contact the National AI Centre or business.gov.au directly.
Step 2: Define your AI project. Identify the specific business problem you want to solve with AI. Be concrete. "Automate our invoice processing" is better than "explore AI opportunities." The clearer your project scope, the stronger your application.
Step 3: Get quotes and a project plan. You will need to show the assessors that you have a realistic budget and timeline. Get quotes from AI consultants or solution providers and build a clear project plan with milestones.
Step 4: Prepare your financials. Have your recent financial statements ready. You will need to demonstrate that your business can fund its co-contribution portion and that you are a viable going concern.
Step 5: Submit through business.gov.au. Create an account if you do not already have one, complete the application form, attach your supporting documents, and submit before the round closes.
5 Tips for a Strong Application
Government grant applications are competitive. Here is how to make yours stand out.
1. Be specific about the problem
"We want to use AI" is not a strong application. "We spend 40 hours per week manually processing invoices and want to automate 80% of that with AI" is. Quantify the problem you are solving.
2. Show you have done your homework
Demonstrate that you understand what AI solution fits your problem. If you have already spoken to vendors or consultants, mention it. The assessors want to see that you will actually use the funding, not sit on it.
3. Include measurable outcomes
State what success looks like in numbers. Hours saved per week, percentage reduction in errors, dollar value of improved efficiency. Vague outcomes like "better customer experience" will not score well.
4. Have your financials ready
You will need to show your co-contribution capacity. Have recent financial statements, a clear project budget, and a timeline ready before you start the application.
5. Apply early
Grant programs like this are competitive and often oversubscribed. The AI Adopt Program has a fixed funding pool. Applications submitted early and well-prepared have a better chance than those rushed in at the deadline.
Free advisory from the National AI Centre: The National AI Centre, part of CSIRO, provides free AI advisory services to Australian businesses. They can help you assess your AI readiness, identify use cases, and connect you with the right resources. You do not need to be applying for the AI Adopt Program to use their services, but combining their guidance with a grant application is a smart move.
State-Level AI Grants Worth Knowing About
The AI Adopt Program is federal, but several states run their own AI and digital adoption grants. Depending on where your business is based, you may be able to stack state funding with the federal program. Here is a quick overview.
Victoria: Business Acceleration Fund (BAF)
$14M total pool
Supports Victorian businesses adopting digital and AI technologies. Multiple rounds have already been allocated.
Queensland: Small Business AI Grants
Up to $10,000
Targeted at small businesses wanting to adopt AI tools for the first time. Quick application process.
New South Wales: Digital Transformation Grants
Up to $25,000
Covers AI adoption as part of broader digital transformation for NSW-based SMEs.
South Australia: Industrial AI Program
Varies
Focused on manufacturing and industrial businesses adopting AI for operational improvements.
For a full breakdown of every AI grant available to Australian businesses, including eligibility details and application links, read our complete guide to AI grants for Australian small businesses.
What Should You Do Right Now?
Do not wait for the next round to start preparing. The biggest mistake businesses make with grant applications is leaving everything to the last week. Start now. Identify your AI use case, get quotes, and build your project plan so you are ready to submit the moment a round opens.
Talk to the National AI Centre. Their free advisory service exists specifically to help businesses like yours figure out where AI fits. Use it.
Get an AI readiness assessment. Understanding where your business stands today, what your data looks like, and which processes are best suited for AI will make your application significantly stronger. It also ensures you are applying for funding on a project that will actually deliver results.
Bookmark business.gov.au/grants. Grant rounds are announced there first. Set up email alerts if available so you do not miss the opening date.
Source: Australian Government, National AI Plan, 2025. Program details via business.gov.au.
Need help with your AI Adopt Program application? FlowWorks helps Australian businesses identify the right AI use cases, build the project plan, and put together grant applications that stand up to scrutiny. We can also deliver the AI implementation itself if your application is approved.
Talk to us about your AI projectFrequently Asked Questions
Who is eligible for the AI Adopt Program?
Australian small and medium enterprises (SMEs) and not-for-profit organisations with an active ABN. The program is targeted at businesses that have a genuine need for AI adoption but may lack the resources to do it independently. Large corporations and government agencies are not eligible.
How much funding can I get from the AI Adopt Program?
The total program pool is $17 million under the National AI Plan. Individual grant amounts vary depending on the stream and scope of your project. Most streams require a co-contribution of 25% to 50% of the total project cost, so the government will not fund 100% of your AI adoption.
What can the AI Adopt Program funding be used for?
The funding covers AI implementation, AI strategy and planning, staff upskilling and training, and data readiness activities. It is designed for practical adoption of AI into your business operations, not for academic research or speculative projects.
Can I use the funding to hire an AI consultant?
Yes. Using the funding to engage qualified AI consultants for strategy, implementation, and training is a legitimate use. In fact, applications that include expert support often score better because they demonstrate a realistic plan for successful adoption.
When does the AI Adopt Program close?
Grant rounds open and close on specific dates published on business.gov.au. Because the program has a fixed $17 million pool and is expected to be competitive, it is best to prepare your application materials now and submit as soon as a relevant round opens. Check business.gov.au/grants for the latest dates.