Now Is A Perfect Time To Start Exploring AI

While many SME owners want to embrace AI, the daily realities of running a business mean their priorities lie elsewhere. However, the evolving environment presents an opportunity for agile small businesses to step up and establish a competitive edge.

A recent Reserve Bank survey of medium-to-large companies turned a spotlight on tech investment in Australia. The results revealed most businesses, even large ones, were still in the exploratory phase of AI adoption – surprising and perhaps comforting news to small business owners who feared they were being left behind.

The Challenge and the Generational Shift

Employment Hero Chief Operating Officer Robert Goodwin understands why immediate AI adoption is hard for SMEs. “Time is your most precious commodity. Literally everything is urgent,” he says. “It is completely natural to focus on the things that you know work.”

However, Goodwin emphasises the urgency of the change: “The reality is that we are all in the middle of a once-in-a-generation shift in the technology AND business landscape. AI is not a fad – it is the equivalent of ignoring the launch of desktop computers.”

Plan for Long-Term Wins And The Investment Will Pay Off

Australian businesses have been pouring money into foundational IT elements like CRMs, cloud migration and cybersecurity, with spending up 80 per cent in the past decade. The RBA survey highlighted that while these essential upgrades might not yield an immediate profit or productivity gain, they would secure significant long-term value.

The report said productivity gains typically materialised after 1–3 years for system upgrades, and AI-related gains took 3–5 years. For SMEs, this means success requires strategic patience and planning. It’s crucial to invest thoughtfully and carefully pace adoption, remembering to build in a buffer for training time, temporary slowdowns and teething problems.

Scaling Smart AI Overcomes Capacity Challenges

While 66 per cent of businesses surveyed said they had adopted AI, further inspection revealed this was ‘very limited.’ 40 per cent don’t go beyond ChatGPT or Gemini, or email summarisation. 

Goodwin says the issue may be a lack of awareness of what’s out there: “AI is the ultimate unlock for many of those capacity challenges for small businesses. It can automate processes, generate insights for smarter use of capital, help to create, deliver and optimise products, and so much more. AI is no longer an interesting tool that you should play with in your business – it is becoming the cornerstone on which all businesses can be built.”

Experiment Your Way Beyond the Basics 

The RBA found experimentation was largely “employee-led rather than employer-led,” as forward-thinking staff introduced AI into their workflows instead of waiting for company-wide implementation.

Goodwin acknowledges change can feel daunting. “AI is actually pretty intimidating!  Getting beyond simple tools like ChatGPT actually requires one thing that small business owners know better than just about anyone on earth: grit.”

His advice: “Just get started. Every mistake on our AI journey has helped us learn and make a better decision for higher impact. Plus, if you get stuck and don’t know how to automate a workflow, generate an insight or choose a tool, that’s actually where ChatGPT can be your best friend. Just ask it for advice on how to move from dabbling to high impact application.”

Goodwin encourages a positive mindset. “Remember, there are no experts. We are all new to this. Test and learn, push yourself to adopt this new generation of tech and don’t worry if you fail – just fail fast!”

For SMEs, this effort could pay off handsomely: “If, like most small businesses, time is your greatest asset, this early investment will almost undoubtedly yield time dividends even your best team member will not.”