Original ResearchComing Soon

State of AI in Australian SMEs: 2026 Report

The first comprehensive study of AI adoption, investment, and governance across Australian small and medium businesses. Based on original survey data and insights from 140+ businesses already assessed through FlowWorks.

What the report covers

This is not another recycled survey from a global consulting firm with a token Australian sample. This report is built entirely on Australian SME data, collected directly from business owners and decision-makers across every state and territory.

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Adoption Rates

What percentage of Australian SMEs are actively using AI, and how does it vary by industry and company size.

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Tools and Platforms

Which AI tools dominate the Australian SME market, from ChatGPT and Claude to automation platforms and industry-specific solutions.

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Investment and Spending

How much Australian SMEs are spending on AI today and how they expect that to change in the next 12 months.

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Barriers to Adoption

The real reasons businesses are not adopting AI, from lack of expertise to concerns about privacy and ROI.

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Governance and Compliance

How many businesses have AI usage policies, and how prepared SMEs are for upcoming Privacy Act changes.

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Where AI Delivers Value

The specific business areas where AI is generating the strongest returns for Australian small businesses.

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State-by-State Breakdown

How AI readiness and adoption differ across New South Wales, Victoria, Queensland, and the rest of Australia.

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12-Month Outlook

Where Australian SMEs plan to invest in AI over the coming year and what that signals for the market.

Early Findings

What we already know

Before the full survey launches, we already have data from 140+ Australian businesses that have completed the FlowWorks Free AI Audit. Here is what the early numbers show.

3.2 / 5

Average AI readiness score

Based on 140+ businesses assessed through the FlowWorks Free AI Audit

68%

Using AI informally

Most businesses have individuals using tools like ChatGPT, but lack formal adoption or policies

12%

Have an AI policy

Only a small fraction of SMEs have documented guidelines for how staff should use AI tools

#1

Barrier: not knowing where to start

The most common challenge is not cost or fear, but simply not knowing which processes to automate first

The survey is live

Share how your business uses AI and help build the most comprehensive picture of AI adoption in Australian SMEs. Takes about 6 minutes.

Take the Survey Now

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All participants receive the report free.

Who should participate

The survey is designed for anyone involved in technology or operational decisions at an Australian SME. The more diverse the sample, the more useful the data.

Business owners and founders

Benchmark your AI maturity against peers in your industry and size bracket

Operations and office managers

Identify which processes other businesses are automating and the results they are seeing

IT leads and technology managers

Understand the tools landscape and governance requirements shaping AI adoption

Accountants and advisors

Use the data to guide client conversations about AI investment and readiness

Industry association leaders

Access sector-specific data to inform member programmes and advocacy

Consultants and advisors

Reference independent Australian data when advising clients on AI strategy and investment

How the data will be used

Published as a free report

The full findings will be published as a downloadable PDF, free for anyone to read and share. No paywall, no gated content.

Presented at industry events

Key findings will be presented at business and technology events across Australia, with full attribution to all contributing organisations.

Shared with media

The data will be made available to journalists and industry analysts covering AI adoption in Australia, positioning participants as part of the conversation.

Used to build better tools

Aggregate insights will help FlowWorks and the broader community build better resources, benchmarks, and frameworks for Australian SMEs.

All individual responses are anonymous. No business names or identifying information will be published without explicit permission.

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1300 484 044 ยท ops@flowworks.com.au ยท 470 St Kilda Rd, Melbourne VIC 3004