Artificial intelligence is becoming a bigger part of Australian business. The latest Australian Bureau of Statistics data shows that 12% of Australian businesses reported using AI in 2024–25, compared with just 1% in 2021–22. AI adoption was particularly high among innovation-active businesses.
But how are Australian businesses actually using AI?
How Are Businesses Using AI in Australia?
Australian businesses are using AI for areas such as data analysis, content creation, automation, customer service, marketing and business decision-making.
The National AI Centre reported that among Australian businesses currently using or planning to use AI, content generation and data analytics were the leading applications, each used by 54% of adopters.
Common applications include:
- Content generation
- Data analytics
- Marketing
- Customer service
- Research
- Workflow automation
- Software development
- Business analysis
- Internal documentation
How Many Australian Businesses Are Using AI?
The answer depends on the survey and definition used.
The ABS reported that 12% of all Australian businesses used AI during 2024–25, compared with 1% in 2021–22.
A separate National AI Centre tracker focused on SMEs found that 43% of Australian SMEs reported some level of AI adoption between December 2025 and February 2026.
These figures should not be directly compared because they measure different populations and use different methodologies.
Which Australian Industries Use AI the Most?
AI adoption varies significantly by industry.
According to the ABS, Information, Media and Telecommunications had the highest AI adoption at 38% in 2024–25. Professional, Scientific and Technical Services and Financial and Insurance Services were both at 24%.
| Industry | Businesses Using AI |
|---|---|
| Information, Media & Telecommunications | 38% |
| Professional, Scientific & Technical Services | 24% |
| Financial & Insurance Services | 24% |
| Mining | 18% |
| Health Care & Social Assistance | 17% |
| Retail Trade | 9% |
| Construction | 6% |
| Accommodation & Food Services | 5% |
| Agriculture, Forestry & Fishing | 3% |
This shows that AI adoption is particularly strong in information-intensive industries, while adoption is lower in several traditional sectors.
How Are Australian Businesses Using AI for Marketing?
Marketing is one of the practical areas where AI can reduce repetitive work and speed up content production.
Businesses can use AI to:
- Research customers and competitors
- Create advertising concepts
- Write ad copy
- Generate social media content
- Analyse campaign data
- Create images and videos
- Personalise customer communication
- Analyse reviews
- Automate marketing workflows
For performance marketers, AI can support the workflow from:
Research → Strategy → Creative → Paid Ads → CRO → Analysis
The objective is not simply to produce more content. It is to improve the marketing process.
How Are Australian Businesses Using AI for Data Analysis?
Data analytics is one of the leading AI applications among Australian businesses.
AI can help businesses analyse:
- Sales data
- Customer behaviour
- Marketing performance
- Financial information
- Product data
- Operational data
- Customer feedback
For businesses with large amounts of information, AI can make analysis faster and help teams identify patterns that would otherwise require significant manual work.
The National AI Centre found that data analytics was one of the two leading AI applications among Australian adopters.
Are Australian SMEs Using AI?
Yes.
The National AI Centre reported that 43% of Australian SMEs reported some level of AI adoption between December 2025 and February 2026, with adoption reaching 44% in February.
The ABS also found that AI adoption was higher among innovation-active businesses. In 2024–25, 19% of innovation-active small businesses used AI, compared with 4% of small businesses that were not innovation-active.
What Are Australian Businesses Using AI For?
The National AI Centre identified content generation and data analytics as leading applications, each used by 54% of AI adopters in its December 2025 to February 2026 data.
Other applications include:
| AI Use | Business Application |
|---|---|
| Content generation | Articles, emails, social media |
| Data analytics | Business and customer insights |
| Customer service | Chatbots and support |
| Marketing | Campaigns and personalization |
| Research | Market and competitor research |
| Automation | Repetitive workflows |
| Software | Coding and development |
What Are the Most Popular AI Tools for Australian Businesses?
Australian businesses can access the same major AI platforms used internationally.
Some widely used options include:
- ChatGPT for research, writing, analysis and general business tasks
- Google Gemini for research and Google ecosystem workflows
- Claude for writing, analysis and coding
- Microsoft Copilot for Microsoft workflows
- Perplexity for research and AI-powered search
- Canva AI for marketing design
- Midjourney for AI-generated images
- Runway for AI video
- Zapier for workflow automation
Australia also has a growing domestic AI ecosystem. The Australian Government says the country has more than 1,500 AI companies and highlights growing investment in Australian AI businesses.
What Is Stopping Australian Businesses From Using AI?
Adoption is growing, but many businesses still face barriers.
The National AI Centre found that among non-adopting businesses, trust was the leading barrier, with around 65% citing distrust in AI decision-making or a preference to maintain human control.
Another 54% said AI was not relevant to their business, while 19% said they did not know how to use AI.
Other challenges include:
- Data privacy
- Security
- Cost
- Lack of AI skills
- Unclear ROI
- Integration challenges
- Lack of internal expertise
This means businesses need more than access to AI tools. They need a clear reason to use them.
Are Australian Businesses Moving Beyond AI Experiments?
There are signs of deeper adoption.
The National AI Centre reported that broad AI adoption, where AI is embedded across multiple parts of a business, reached its highest level in seven months in its December 2025 to February 2026 data. Limited, one-off use was declining among adopters.
This creates an important distinction:
Using AI → Integrating AI → Building workflows around AI
The value increases when AI becomes part of an actual business process.
Is Australia Investing in AI?
Australia is also building a broader AI ecosystem.
The Australian Government’s National AI Plan identifies AI adoption as important for productivity and business competitiveness. It also reports that Australia attracted $10 billion in data centre investment during 2024, while more than 1,500 companies are active in the country’s AI ecosystem.
The government has also established AI Adopt Centres to help small and medium businesses adopt AI in practical and responsible ways.
How Should an Australian Business Start Using AI?
Start with a business problem, not an AI tool.
Ask:
- What task takes the most employee time?
- What information does the team repeatedly research?
- Which marketing tasks are repetitive?
- Where are customers waiting for answers?
- What business data is difficult to analyse?
- Which workflow could be automated?
Then choose an AI tool that solves that specific problem.
Frequently Asked Questions
What percentage of Australian businesses use AI?
The ABS reported that 12% of Australian businesses used AI in 2024–25, compared with 1% in 2021–22. A separate National AI Centre SME tracker reported 43% adoption among SMEs for December 2025 to February 2026, using a different methodology and business population.
Which Australian industry uses AI the most?
Information, Media and Telecommunications had the highest reported AI adoption in the ABS 2024–25 data, at 38%.
What are Australian businesses using AI for?
Content generation and data analytics were the leading applications among AI adopters in the National AI Centre’s latest SME data, each reported by 54% of adopters.
Are Australian small businesses using AI?
Yes. The National AI Centre reported that 43% of Australian SMEs had adopted AI to some degree between December 2025 and February 2026.
What are the biggest barriers to AI adoption in Australia?
Trust, relevance and knowing where to start are major barriers. The National AI Centre reported that around 65% of non-adopters cited trust or a preference for human control, 54% said AI was not relevant, and 19% said they did not know how to use AI.
Conclusion
AI adoption in Australia is moving from experimentation toward practical business use. The latest data shows growing adoption among SMEs, while content generation and data analytics are among the most common applications.
For businesses, the opportunity is not simply to use AI because it is popular. The better approach is to identify a specific process where AI can save time, improve customer experience, analyse data or support growth.
For marketers, combining AI, Paid Ads and Conversion Rate Optimization can turn AI from a content tool into part of the customer acquisition system.
Explore Paid Advertising and Conversion Rate Optimization by Farooq Shafi Digitals.
