A new Parliamentary inquiry will investigate why Australian SMEs are not adopting AI, focusing on the gap between enterprise uptake and small business reality.
The Joint Select Committee on Artificial Intelligence was appointed Thursday. Among other subjects, it will examine adoption rates in smaller businesses, where existing data shows clear friction points.
Government research found 65% of non-adopting businesses cited distrust in AI decision-making or a preference for human control. 54% said AI was not relevant to their business. 19% of SMEs said they do not know how to use AI in their business.
For sales teams selling into this segment: the key blockers are not price. Deloitte research identifies five recurring barriers: not knowing where to start, data and system limitations, workforce skills, funding constraints, and governance concerns. Time scarcity, privacy worries, and integration issues also show up consistently in 2025-26 coverage.
That means the pitch cannot be product features alone. SMEs need implementation confidence, workflow fit, and use case clarity before they buy.
The inquiry sits within a broader Parliamentary push on AI governance. Previous inquiries covered AI adoption in government and workplace settings. Future procurement, compliance, and training frameworks may shape the SME AI market more than product roadmaps.
Productivity Commissioner Danielle Wood told the recent COSBOA summit that properly-harnessed AI could add 4% to labour productivity over the next decade. But working papers already show formal use of business-grade AI tools is more pronounced among the largest firms.
The committee will report findings later this year. Vendors should watch for policy signals on SME readiness support, standards, and procurement pathways. The market exists. The enablement does not.