Practical improvements in workflow and customer service are outpacing financial returns
A fifth of Australian small and medium enterprises (SMEs) using artificial intelligence (AI) are reporting substantial gains, according to new research from National Australia Bank (NAB), as businesses shift from experimenting with the technology to embedding it in daily operations.
The bank's data shows 40% of SMEs are currently using AI, with a further 13% planning to adopt it. Of those already using the technology, 22% describe the improvements as transformational.
NAB head of behavioural and industry economics Dean Pearson said the clearest gains were emerging in operational processes rather than financial results.
“AI is starting to deliver tangible benefits for small businesses, but the impact is most striking in how work gets done,” Pearson (pictured right) said.
“For many SMEs, transformation begins inside the business, in faster workflows, better use of information and improved customer engagement, before it shows up in financial performance.
“Business Services shows what is possible when firms have the data, processes and confidence to put AI to work. These sectors are moving faster, while others will need greater support to build capability that enables them and the economy to be more productive.”
Specific areas of your business that have benefitted most from AI
Source: NAB
Productivity gains lead the way
According to the NAB SME Business Insights, productivity improvements were the most commonly cited benefit, named by 58% of respondents. Marketing followed at 46% and customer service at 36%. Fewer businesses linked AI directly to profitability (9%) or revenue growth (7%).
Sydney-based mechanic Peter Leondis, who owns Leondis Automotive across three sites, said automation had helped his business manage growth.
“We've started using an AI tool to follow up missed calls and unfinished bookings with a simple text. Even at small volumes, it's already converting leads we would have missed,” Leondis said.
“I am a mechanic and I do love building and tinkering, so I've used an open-source model connecting to a voice agent we've called 'Zoe' to handle missed calls any time of the day or night and follow up unfinished bookings.
“It means we can respond to customers faster and answer more complex questions even outside business hours. It's helping us nurture more leads, improve conversion, and reduce our cost to acquire new customers.”
Workforce readiness remains a barrier
Despite the reported gains, the research points to a shortfall in staff capability. SMEs rated their workforce's readiness for AI at an average of 3.8 out of 10, and only 17% said their teams were highly prepared for the technology.
NAB executive for small business Krissie Jones said more SMEs were adopting AI to reduce administrative workload and free up time for growth-focused tasks.
“We're starting to see what's possible when AI actually lands in a small business and it's pretty powerful,” Jones (pictured right) said. “A Queensland manufacturer we're working with has gone from a week to 10 minutes to turn around quotes. Meanwhile, in Canberra, a local mechanic is using AI to make sure they don't miss customer calls.
“The challenge is most businesses aren't there yet. They know AI matters, but it still feels out of reach. But small businesses are nothing if not resilient. They're adapting, they're problem-solving and with the right support, they can use AI to get ahead, not fall behind.
“That's where we're focused – providing resources on nab.com.au to make AI simple, practical and actually useful for Australian businesses.”
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