Keeping pace with advances in AI is a costly challenge for most Australian SMEs. But whether businesses are trying to innovate or integrate, new federal funding opportunities aim to level the playing field.
A $20 million pool of grants is now available under the latest round of the Cooperative Research Centres Projects scheme. Launched this week, the funding is specifically for businesses looking to develop or improve AI systems and technologies. But SMEs with less sophisticated AI priorities can find help under other programs, if they know where to look.
The $20m AI Accelerator
The CRC program connects industry with researchers to tackle real business problems and develop a product, service or process that has commercial applications. It’s designed to make Australian industries more competitive and boost productivity, with the focus in this round on AI systems and technologies. Matched funding can cover costs related to research, proof of concept activities, education and training, or conferences and workshops.
Grants of between $100,000 and $3 million are available for projects running up to three years, with a clear focus on SMEs: to qualify, projects must involve at least two Australian industry organisations and one research organisation, and the lead applicant must be a small to medium-sized business. The previous round centred around robotics and automation, with funding awarded to projects including a robotics soft plastics recycling platform and AI-powered IVF for cattle.
Alternative Pathways To AI Assistance
SMEs not ready for a large-scale research collaboration have other options for AI assistance.
The Industry Growth Program offers matched grants from $50,000 to $5 million for businesses with turnover under $20 million that have a working prototype and need help scaling. AI is on a list of priority fields which also include resources, transport, medical tech and agriculture. Among recent recipients was Sydney SME EMVision Medical Devices, which incorporates AI into portable brain scanners that can diagnose strokes outside hospitals.
While not offering grants, AI Adopt Centres do provide free technical advice to SMEs on implementing existing AI tools. Businesses in priority sectors can access training courses, one-on-one consultations and roadmaps, technology demonstrations and AI safety guidance at four designated hubs. It’s a practical option for businesses that don’t need to build something new but do need to operate more efficiently.
Time-Poor Businesses Can Miss Out On Funding
Despite the millions of dollars on the table annually, many Australian SMEs remain reluctant to apply for government funding. Common barriers include the cost of compliance, complex documentation and an inability to devote time to applications when the outcome is not assured. Research from the CSIRO and industry bodies suggests that nearly one in four businesses are unsure what barriers even exist, leading many to opt out before they begin. However, the long-term benefits can outweigh the initial administrative hurdle. Beyond the cash injection, successful grant recipients often find the reputational boost makes it easier to secure private investment later.
Applications for the $20 million CRC Projects grants close on May 12.
