CreditorWatch’s latest Annual Business Sentiment Survey reveals a significant shift in how Australian businesses are embracing artificial intelligence (AI), with adoption rates, satisfaction levels and expectations of its impact all rising sharply over the past year.

Yet the report also highlights a significant divide. The September 2025 survey, which canvassed 1,017 business decision-makers across all industries and business sizes, shows one in three (32%) Australian businesses haven’t adopted any new technologies in the past year – a problem far more common among smaller operators. Almost half of sole traders (49%) and around 40% of small and medium-sized businesses haven’t embraced ‘newer’ technologies such as AI, big-data analytics, or robotics in the past 12 months, compared with just 4% of large businesses.  

While this is an overall adoption of new technology saw a 15 percentage point improvement – dropping from 47% to 32% when compared to CreditorWatch’s May 2024 Business Sentiment Survey – it is concerning that businesses are not taking advantage of the potential productivity, efficiency, talent and data benefits that these newer technologies help deliver.

Focusing on the most discussed technology in this mix, AI, shows more positive signs. The survey found that 41.5% of businesses adopted AI tools in the past 12 months, up from 34.8% in May 2024, marking a 6.7 percentage point increase. This growth positions AI as the most widely adopted technology, ahead of cloud-based finance platforms (28.4%) and big-data analytics (25.0%).

AI adoption is no longer confined to early adopters or large corporates. The survey shows uptake is broadening across sectors and demographics, with notable gains among female-led businesses (+8.6 pts), Gen Z leaders (+13.4 pts), and businesses in NSW, VIC and QLD, all of which saw double-digit increases.

CreditorWatch CEO Patrick Coghlan said the findings reflect a maturing market and a growing recognition of AI’s strategic value:

“AI is no longer a just fringe investment – it’s central to how businesses compete. While some companies are still catching up, the data shows that companies embracing AI are seeing real returns, and that’s driving broader adoption across sectors. We’re witnessing a shift from curiosity to capability, but there’s still work to be done to enable smaller businesses in particular to keep pace and advance technologically – something that can be challenging, yet offers significant benefits, especially in the current landscape.”

How is AI being adopted?

Among businesses that have adopted AI, the most common applications include:

• Content creation and editing (46%)
• Data insights and analytics (37%)
• Automation of routine tasks (37%)
• Customer service/chatbots (35%)
• Sales and marketing analytics (33%)
• Project and task management (31%)

Satisfaction with AI remains exceptionally high. 94.6% of adopters report positive outcomes, with 43% “very satisfied” – up from 37.6% in 2024. This suggests that AI tools are not only being deployed more widely but are delivering tangible value across operational and strategic functions.

AI adoption by sector and business size

The survey highlights a clear divide in adoption and impact expectations across industries. AI adoption is accelerating across financial services and business services – reporting adoption rates of 49% and 53% respectively, and the highest satisfaction around ROI.

These sectors are leveraging AI for automation, content creation, and data insights, with satisfaction levels exceeding 95%. In contrast, sectors such as construction, distribution and retail are lagging, with adoption rates below 35% and lower confidence in AI’s transformative potential.

Larger businesses are leading the way in AI adoption, highlight an increasing digital divide by business size, with 69% of companies with 200+ employees integrating AI tools, compared to just 33% of small businesses and 30% of sole traders.

These larger organisations also report the highest satisfaction (99.1%) and strongest expectations of impact, with over 73% anticipating significant or moderate transformation within five years. While smaller businesses are increasingly adopting AI, they remain constrained by financial resources, time and technical capability.

Barriers to tech adoption

Despite the momentum, challenges remain. The top barriers to tech investment include:

• Cybersecurity concerns (29.8%)
• Limited financial resources (25.3%)
• Uncertainty about return on investment (ROI) (23.1%)
• Lack of tech knowledge and skilled employees (combined 38.8%)

While financial and time constraints have eased since 2024, cultural resistance and strategic uncertainty persist, particularly in sectors with lower digital maturity.

Looking Ahead

CreditorWatch’s data shows that 49% of business leaders expect AI to have a significant or moderate impact on their operations over the next five years. This forward-looking sentiment, combined with rising adoption and satisfaction, suggests that AI is transitioning from a tactical tool to a strategic enabler.