Queensland’s small businesses face a critical moment as AI adoption splits the state’s economy between those thriving with the technology and those struggling to keep pace. While larger firms in tourism, agriculture, and manufacturing have already begun integrating AI tools, most small and medium-sized enterprises (SMEs) remain stuck in early-stage experimentation—or worse, unaware of its potential. According to Business Chamber Queensland, three-quarters of businesses are still focused on simply surviving technological change rather than leveraging AI for competitive advantage.
The gap is widening. AI can automate routine tasks, refine decision-making, and redirect staff toward higher-value work, yet 80% of Queensland SMEs either don’t use AI at all or rely on basic functions like email drafting and search tools. Only 9% of businesses consider themselves proficient in AI applications, while 13% admit they don’t understand the concept. The result is a productivity gap that risks leaving Queensland’s backbone, businesses with 20 employees or fewer, behind as the state’s economy accelerates.
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For these firms, AI isn’t just a tool; it’s a potential equalizer. Smaller operators in industries from Cairns tourism to Darling Downs agriculture could gain access to capabilities once limited to corporate giants. But without targeted support, the divide will deepen. The chamber’s research highlights three core barriers: a lack of skills, limited guidance, and uncertainty about where AI delivers real returns. Many businesses recognize the need for change but lack the confidence, or the time, to implement it effectively.
Cybersecurity adds another layer of risk. As AI adoption grows, so do threats: scams, phishing attacks, and fraud are evolving with machine learning, forcing businesses to invest in safeguards they may not yet have. The chamber warns that without proactive measures, even well-intentioned AI adoption could expose SMEs to new vulnerabilities.
A coordinated approach is essential to bridge this divide. Queensland’s SMEs need structured access to digital-skills training, practical use cases tailored to their industries, and clear guidance on governance and cybersecurity. Government must play an important role, not by imposing rigid regulations, but by creating frameworks that balance innovation with trust. The focus should be on responsible adoption, aligning with existing laws where possible, and avoiding bureaucratic hurdles that stifle progress.
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Businesses themselves are clear about their needs. AI isn’t just a technical challenge; it’s a leadership and cultural shift. Successful implementation requires buy-in from employees, transparent communication about changes, and safeguards for data sovereignty. Without these, even the most advanced tools will underperform.
The stakes are higher than ever. With the 2032 Brisbane Olympics and Rugby World Cup on the horizon, Queensland has a chance to position itself as a global leader in digital innovation. That opportunity hinges on whether the state’s SMEs can adopt AI strategically, or if they’ll be left playing catch-up.
