New research from Intuit’s 2026 AI Impact Report reveals artificial intelligence is playing a central role in driving growth, boosting productivity, and supporting job creation across small and mid-sized businesses.

The report draws on one of the largest datasets of its kind, combining anonymised administrative data from more than 5.3 million businesses using QuickBooks, alongside surveys of more than 34,000 businesses in Australia, US, UK and Canada.

The findings provide a real-world view of how AI is primarily being adopted as a tool for business expansion and operational efficiency rather than as a mechanism for broad labour reduction or simple cost-cutting.

A shift in the narrative on jobs

The report challenges the idea that AI is primarily a threat to jobs. Across all four markets, more businesses report increasing employment as a result of AI than reducing it.

In Australia, 19% of businesses using AI report increased employment, compared to just 6% reporting declines. Similar patterns are seen internationally, pointing to a broader trend of AI enabling, rather than replacing, human work.

Key findings:

• AI adoption is now mainstream: Around 69% of businesses in Australia report using AI regularly (versus 70%  in the UK, 77% in the US, 69% in Canada).
• Strong productivity gains: 79% of Australian SMBs using AI report productivity gains – compared to 78% in the US and 73% in the UK. This is a significant jump from 37% in mid-2024
• Revenue growth: Around 43% of Aussie businesses report increased revenue as a result of AI, while only a small minority (3-4%) report declines.
• AI is becoming embedded in operations: Around 12% of businesses say AI is now a core part of how they run their business.

Rapid acceleration in adoption

Australian businesses have not only embraced AI, they’ve been quick on the uptake. Regular AI adoption among Australian SMBs has nearly doubled in 18 months, from 40% in July 2024 to 69% in January 2026. Daily AI usage has almost tripled in the same time frame, jumping from 9% to 28%.

As of January 2026, 69% report they’ve adopted AI in their business, and use of AI in accounting, admin, and marketing tasks has become the norm.

Driving efficiency, revenue and growth

This is translating into tangible operational benefits, with the most positive impacts cited from AI use being revenue, and then efficiency both in costs and workday length.

• 43% of Australian businesses said AI had increased revenue
• A quarter of businesses report reduced costs
• 19% of businesses using AI report increased employment, compared to just 6% reporting declines

Barriers to AI Adoption

For many Australian small businesses, the challenge isn’t accessing AI, it’s knowing how to use it safely and effectively. At 39%, privacy and security concerns are the number one reported barrier. And while these hesitations top the list in every country, it’s more prevalent in Australia than in the US (36%), the UK (35%), and Canada (36%).