iscoverAs the Productivity Commission continues to release interim reports, CPA Australia has said SMEs need support in the evolving AI implementation space.
AI regulation must come with SME support, says CPA Australia
07 August 2025
•
9 minute read
The Productivity Commission has recommended “cautious regulation” of artificial intelligence in its recent ‘Harnessing data and digital technology’ report, yet CPA Australia believes it lacks discussion or focus on how this would apply to, and impact, small businesses.
Gavan Ord, CPA Australia business investment lead, welcomed the Commission’s proposal for cautious AI regulation but noted it had “missed an opportunity to recommend meaningful investment in supporting businesses to harness its potential”.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
According to Ord, the report outlined a sensible framework for future AI regulation, but SMEs were not encouraged or advised on how to effectively and safely adopt AI.
“This is definitely not an ‘if you build it, they will come’ scenario. The Commission’s report questions whether Australian businesses are already behind the curve internationally in the adoption of AI – and the answer is a categoric yes,” he said.
“We needed the Commission to provide recommendations to the government on incentives to help boost the uptake of technologies, including AI, as well as guidance on the benefits and practical support that businesses need to implement it.”
Ord’s comments stemmed from the CPA Australia Asia-Pacific Small Business survey, which highlighted that 26 per cent of Australian small businesses had invested in new technology which had proved profitable over the last year, compared to 56 per cent across 11 other markets.
It also found that 39 per cent of Australian SMEs reported that more than 10 per cent of their revenue came from online sales, compared to the survey average of 67 per cent, and only 18 per cent of Australian small businesses had sought expert advice on it, compared to the average 28 per cent.
“The report assumes a level of knowledge, expertise and capability that doesn’t match reality for many SMEs who focus 100 per cent of their time and effort on getting through each day with little time to consider investigating technologies, even if they think it could be beneficial to do so,” Ord said.
“In addition to ensuring a sensible approach to AI regulation, the government should invest in supporting business growth by offering better incentives for the uptake of technologies than is currently the case, as well as providing educational programs on how to benefit from it.”
The Business Council of Australia added to the conversation on AI in businesses, and noted that “all Australians will benefit from a sensible approach to artificial intelligence” and would ensure that businesses weren’t left behind on a global scale.
Bran Black, chief executive of BCA, welcomed the Productivity Commission’s move to recommend the application of existing laws and protections to the rollout of AI.
“AI can help us work smarter, not harder, supporting workers and businesses to spend more time on the things that matter most. The PC has recommended a sensible middle ground approach to regulation, under existing laws to ensure the AI opportunity is realised while providing appropriate protections,” he said.
“The PC’s approach is backed by an alliance of nearly 30 industry groups who say AI should be harnessed to boost living standards for all Australians. It will be critical that our workforce has the right training and skills to adopt AI and business, with the government having an important role to play.”
You need to be a member to post comments. Become a member for free today!
