National AI Plan moves in the right direction, but small business needs long-term investment certainty

The Council of Small Business Organisations Australia (COSBOA) says the Government’s National AI Plan takes a sensible and practical approach that aligns with what small businesses have been asking for; clearer guidance, light-touch regulation, and support to adopt technology without extra compliance burdens.

COSBOA Chair, Matthew Addison, said the plan reflects many of the priorities small businesses have raised over the past year, including the need for accessible tools, trusted data and simple rules that help businesses adopt AI safely and confidently.

“Small businesses want to use AI to save time, improve productivity and stay competitive, and they need straightforward settings that don’t create new regulatory hurdles. Keeping Australia’s technology-neutral laws in place and building on them is the right call,” Mr Addison said.

The plan places strong emphasis on small and medium businesses, referring to SMEs more than ten times across the document and confirming that the next phase of work will focus on helping small businesses scale their use of AI. COSBOA said this focus is overdue and welcome, particularly given the clear divide in adoption across the country.

“COSBOA’s past research shows many small businesses are already using AI or digital tools, but awareness and access remain uneven, particularly for businesses in regional areas. These gaps need to be front and centre during implementation,” Mr Addison said.

The plan expands the role of the National AI Centre and its AI Adopt Program, which COSBOA says aligns with the practical, hands-on support small businesses need. COSBOA also acknowledges the creation of the US$29.9 million Australian Artificial Intelligence Safety Institute (AISI) as a step designed to provide oversight without imposing new requirements on small business, while noting the risk of further complicating an already crowded ecosystem if not managed carefully.

Despite these gains, COSBOA said the plan does not address the financial barriers that remain the biggest hurdle to AI adoption.

COSBOA’s 2025 Small Business Perspectives Report shows that while around 30 per cent of small businesses use AI for day-to-day tasks, only 14 per cent have been able to integrate AI into core operations or services. COSBOA said this demonstrates that the implementation phase – not the plan itself – will determine whether small businesses can benefit fully.

As implementation progresses, support for secure use of AI will also be essential. Through the Government-funded Cyber Wardens program, COSBOA is seeing that many small businesses are still building basic cyber capability. Ensuring safe and responsible use will play an increasingly important role as AI tools become more embedded in everyday operations.

“Small businesses learn and adopt in practical ways; they trial, they test, and they rely on trusted support. Implementation now needs to focus on real-world use, regional access, affordability and simple pathways to adoption. Small businesses can’t afford to be an afterthought,” Mr Addison said.

Mr Addison also noted that the plan does not address the concept of an AI Small Business Advisor, which COSBOA continues to see as a practical way to give small businesses consistent, trusted and industry-relevant guidance.

COSBOA will keep advocating for practical, workable measures that lift digital capability, remove barriers to adoption and ensure every small business can benefit from Australia’s AI future.

Access COSBOA’s 2025 Small Business Perspectives Report, here.

For more information on COSBOA, visit: cosboa.org.au.

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For media enquiries or interviews, please contact Matthew Addison, Chair, COSBOA on chair@cosboa.org.au or call +61 (0) 421 553 613.

About COSBOA

Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.