AI adoption in Australian businesses for 2025 Q1
Quarterly SME AI adoption data from NAIC provides the evidence base agencies need when designing AI uplift programs or policy interventions.
Key points
- NAIC's Q1 2025 AI Adoption Tracker shows 40-82% SME adoption rates, varying sharply by business size.
- A new responsible AI dashboard reveals a gap between SME intentions and actual responsible AI practices deployed.
- Primary industries - agriculture, construction, manufacturing - show high unawareness of AI value, not just low adoption.
Summary
The National AI Centre's AI Adoption Tracker for Q1 2025 (January–March) reports on AI uptake among Australian SMEs surveyed monthly via Fifth Quadrant (400 respondents). Adoption rises sharply with business size, from 33% among micro-businesses to 82% among those with 200–500 employees. Retail trade and health and education lead sector adoption; primary industries lag with high unawareness. A newly added responsible AI dashboard highlights a practical gap: while many SMEs commit in principle to responsible AI guidelines, far fewer have implemented operational practices such as staff training, transparency with customers, or formal testing of AI systems.
Implications for Australian agencies
- Consider Policy teams designing AI uplift or digital capability programs could use this data to target intervention at micro-businesses and primary industry sectors where unawareness is highest.
- Monitor Agencies tracking responsible AI adoption across the economy may want to monitor the new NAIC responsible AI dashboard as it matures into a longitudinal dataset.
Implications are AI-generated. Starting points, not advice.
"AI adoption in Australian businesses for 2025 Q1" Source: National AI Centre Published: 6 August 2025 URL: https://www.industry.gov.au/news/ai-adoption-australian-businesses-2025-q1 The National AI Centre's AI Adoption Tracker for Q1 2025 (January–March) reports on AI uptake among Australian SMEs surveyed monthly via Fifth Quadrant (400 respondents). Adoption rises sharply with business size, from 33% among micro-businesses to 82% among those with 200–500 employees. Retail trade and health and education lead sector adoption; primary industries lag with high unawareness. A newly added responsible AI dashboard highlights a practical gap: while many SMEs commit in principle to responsible AI guidelines, far fewer have implemented operational practices such as staff training, transparency with customers, or formal testing of AI systems. Implications for Australian agencies: - [Consider] Policy teams designing AI uplift or digital capability programs could use this data to target intervention at micro-businesses and primary industry sectors where unawareness is highest. - [Monitor] Agencies tracking responsible AI adoption across the economy may want to monitor the new NAIC responsible AI dashboard as it matures into a longitudinal dataset. Retrieved from SIMS, 18 May 2026.