Australian Government AI Support Programs, Grants, and Free Resources for Small Business product guide

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Australian Government AI Support Programs, Grants, and Free Resources for Small Business

Most coverage of AI for small business focuses on tools and tactics. Far less attention is paid to the substantial — and largely untapped — ecosystem of government-backed programs that can dramatically reduce the cost and risk of getting started. For Australian SME owners, this is a critical blind spot.

Challenges like skills gaps, funding constraints, and the rapid pace of technological change remain significant barriers to AI adoption among Australian small businesses. Government programs exist specifically to address each of these barriers — yet awareness of them remains low. The Digital Solutions program has already helped over 60,000 small businesses with low-cost, high-quality digital advisory services, yet many eligible businesses have never heard of it.

This article maps the full landscape of government-backed AI support available to Australian SMEs — federal and state — explaining what each program delivers, who qualifies, and how to access it. Whether you are a sole trader in regional Queensland or a 15-person manufacturer in suburban Melbourne, there is likely a publicly funded resource that can accelerate your AI journey at little or no cost.

Why Government Support Matters for AI Adoption

Larger organisations continue to lead AI adoption, highlighting an ongoing opportunity to enhance AI literacy and uptake among micro and small enterprises. The federal government has recognised this structural gap and has responded with a layered set of programs operating at both the national and state level.

Over one third of SMEs have adopted AI (NAIC, 2025) and Australia ranks third globally for consumer use of Claude, a popular AI tool. However, current adoption rates show a clear regional–metro divide: only 29% of regional organisations in Australia are adopting AI compared to 40% in metropolitan areas.

Regional businesses also have a higher proportion (26%) that are not aware of AI opportunities (Fifth Quadrant, 2025).

These gaps are not accidental — they reflect the structural disadvantages of smaller businesses: less capital to experiment, fewer staff to absorb new workflows, and less time to research options. Government programs are designed to lower precisely these barriers. The smart SME owner treats them as a starting point, not an afterthought.

Federal Programs: The National Framework

The AI Adopt Program

The AI Adopt Program is the centrepiece of the federal government's SME AI support strategy. The AI Adopt Program provides funding to establish up to five AI Adopt Centres to support small and medium sized enterprises (SMEs) that engage in international and interstate trade to adopt responsible AI-enabled services and enhance their businesses.

Supported by $17 million in government grants,

AI Adopt Centres are now open to eligible small and medium sized enterprises in National Reconstruction Fund (NRF) priority sectors to help them adopt responsible AI-enabled services and enhance their businesses.

Critically for cost-conscious SME owners: SMEs will be able to access these services free of charge.

What does the AI Adopt Program actually deliver?

The AI Adopt Program offers SMEs consultations, training and tools to support responsible AI development and use nationwide. More specifically, the program aims to:

• Increase SMEs' capacity to responsibly, safely and effectively utilise AI technologies by providing guidance, specialist training and access to specific talents and expertise, and increase awareness and workforce skills within the SME sector.

• Support the safe and responsible adoption, implementation, and demonstration of real-world applications of AI technologies to address sectoral and local challenges, and support SMEs to responsibly integrate AI products that assist in development of new or improved products and services.

Who is eligible?

Eligibility is tied to the National Reconstruction Fund (NRF) priority sectors, which include value-add manufacturing, medical science, clean energy, food and beverages, resources technology, defence capability, and enabling capabilities. If your business operates in or adjacent to one of these sectors and engages in interstate or international trade, you are a strong candidate.

How to access it:

Visit business.gov.au/grants-and-programs/artificial-intelligence-ai-adopt-program and use the Centre locator to find the AI Adopt Centre serving your sector and region.

The National Artificial Intelligence Centre (NAIC) / CSIRO

The National Artificial Intelligence Centre (NAIC) was established within CSIRO's Data61 in December 2021 as a government-funded hub to accelerate AI adoption across Australian industry, support SMEs, convene the AI ecosystem and promote safe, responsible and internationally aligned AI practices.

It coordinates programs, guidance, training and industry connections and has since transitioned to the Department of Industry, Science and Resources for whole-of-government delivery.

The Centre is part of the government's $124.1 million investment under the AI Action Plan.

The NAIC is not just an advisory body — it is a practical resource hub. Primary focus areas include: adoption support for SMEs through curated guidance, business briefs and the AI Adoption Tracker; workforce and capability development (scholarships, courses such as the "Introduction to AI" microskill, and industry-relevant training); responsible AI guidance and tools, including the voluntary AI safety/guidance frameworks, the AI Impact Navigator and Responsible AI Network activities that promote best practice; and convening and ecosystem discoverability, including an AI directory to connect business with Australian AI providers.

Of particular practical value is the NAIC's AI Adoption Guidance released in late 2025. The NAIC released the Guidance for AI Adoption (NAIC 2025) on 21 October 2025 to support effective adoption practices by business. The guidance includes a suite of practical resources to make AI adoption widely accessible, including editable AI policy templates. NAIC resources have been simplified in partnership with business.gov.au, ensuring even the smallest organisations can benefit.

CSIRO's Innovate to Grow Program

Separate from the NAIC's advisory function, CSIRO is helping small to medium enterprises enhance their R&D knowledge with a free 10-week online program focused on digital technologies and artificial intelligence. CSIRO's Innovate to Grow: Digital Technologies and Artificial Intelligence program connects businesses working on solutions in digital technologies and AI with knowledge, resources, and mentors to learn how to advance their project or ideas.

Free AI Scholarships: The 'Introduction to AI' Course via TAFE NSW / IATD

One of the most accessible and underused resources in the entire government ecosystem is a free, nationally available AI course with one million allocated scholarships.

The National AI Centre (NAIC), coordinated by CSIRO, in partnership with the Institute of Applied Technology Digital (IATD) announced it will provide one million scholarships to support Australians to learn fundamental skills and adopt AI technology in their business operations. The 'Introduction to Artificial Intelligence' course is delivered through TAFE NSW and covers topics including challenges and risks, common misconceptions, real world applications, and advice from industry experts.

The free 'Introduction to Artificial Intelligence' microskill course is provided by the National AI Centre (NAIC) and the Institute of Applied Technology Digital (IATD). The course provides a non-technical introduction to AI fundamentals and is designed for people at the beginning of their AI literacy journey — making it ideal for workers seeking to upskill, individuals starting their career in AI, and small to medium business owners.

No programming or computer science background is required for students to enrol, and the virtual nature of this course facilitates an easier path for Australians to upskill in AI, whenever and wherever they choose.

As NAIC Director Stela Solar noted when the program launched: "SMEs make up over 98 per cent of Australia's economy, and 'Introduction to AI' is their opportunity to learn how they can use this revolutionary technology to enhance their operations, services, and market competitiveness."

This course is a natural starting point for any business owner working through the foundational concepts covered in our guide What Is AI? A Plain-English Explainer for Australian Small Business Owners.

The Digital Solutions Program (ASBAS) — Now with AI Focus

The Australian Small Business Advisory Services (ASBAS) Digital Solutions program is one of the most practically useful — and most underutilised — government programs for SMEs. The program is for small businesses with fewer than 20 full-time (or equivalent) employees, as well as sole traders. The service is available across all metropolitan and regional areas in Australia. Small businesses can attend workshops and webinars at no cost. A small fee will be charged for one-on-one advisory services.

Round 3 of the program, running from 2025–26 to 2029–30, represents a significant upgrade. The Australian Government has announced a total of $25.136 million over five years from 2025–26 to 2029–30 for the grant opportunity. Crucially, Round 3 of Digital Solutions includes a new focus on AI and emerging technologies and will help small businesses access digital productivity opportunities.

This initiative focuses on building digital adoption and capability across five key areas: digitalisation fundamentals, online marketing and sales, business software use, AI and emerging technologies, and cybersecurity.

For eligible businesses, providers must offer five hours of one-on-one advisory support per small business at a one-off cost of $110 (including GST), or free for businesses experiencing financial hardship.

How to access it: Visit business.gov.au/digitalsolutions or phone 13 28 46. Lead providers operate in every state and territory, including the Melbourne Innovation Centre (Victoria), Realise Business (NSW/ACT), Regional Business HQ (Queensland), and Business Foundations WA (Western Australia).

State-Level Programs: What's Available in Your State

Victoria

The Victorian government and its industry bodies have become increasingly active in AI support for SMEs. The Victorian Chamber of Commerce and Industry announced a partnership with Microsoft to deliver the AI Workshop Series for SME Enablement — a new initiative designed to equip small and medium businesses across Victoria with the skills to confidently adopt and apply artificial intelligence.

Insights from the Victorian Chamber's 2024 Business Pulse survey revealed a surge in interest in AI across the business community. For the first time, 36 per cent of Victorian businesses expressed interest to learn how AI can support growth and improve operations.

The Victorian Small Business Commissioner has also publicly championed AI adoption. State leaders should consider the real economic benefits of artificial intelligence for small businesses, with Commissioner Lynda McAlary-Smith saying those with power should "embrace AI with optimism so it can be sensibly introduced and thrive." Business Victoria's grants portal (business.vic.gov.au/grants-and-programs) is updated regularly and should be checked for current digital capability programs.

New South Wales

The NSW Small Business Commissioner has encouraged small businesses to explore opportunities to use AI in their business while remaining alert to some of the pitfalls. The NSW Small Business Commissioner's website (smallbusiness.nsw.gov.au) publishes guides, resources, and event listings relevant to AI adoption for SMEs.

South Australia

South Australia has launched a dedicated state-level AI program for its smallest businesses. The AI Capability Pilot Program equips SA small and family businesses with the understanding and skills to integrate AI solutions into their operations.

The program targets South Australian small and family businesses with fewer than 20 full-time equivalent employees. Applications are accepted on a rolling basis through business.gov.au/grants-and-programs/ai-capability-pilot-program-sa.

Comparing the Key Programs at a Glance

How to Navigate the Ecosystem: A Practical Starting Sequence

For most small business owners, the sheer number of programs can itself become a barrier. Here is a recommended sequence to maximise value:

1. Start with the free Introduction to AI course (via IATD/TAFE NSW). This two-and-a-half-hour microskill course requires no technical background and gives you the vocabulary to engage with every other program more effectively. It pairs directly with the foundational knowledge in our article What Is AI? A Plain-English Explainer for Australian Small Business Owners.

2. Check the Digital Solutions program at business.gov.au/digitalsolutions. With workshops free and one-on-one advisory at a nominal cost, this is the most accessible entry point for the majority of Australian SMEs regardless of industry or location.

3. If you operate in an NRF priority sector, investigate the AI Adopt Centres. These offer deeper, more tailored support than general digital advisory services and are specifically designed for businesses ready to implement AI rather than just explore it.

4. Download the NAIC's AI Adoption Guidance and editable policy templates from the NAIC's website. These resources are particularly valuable when paired with our guide on AI for Australian Business Compliance: Privacy Law, the Australian Privacy Act, and Data Safety.

5. Check your state government's grants portal for current programs. South Australia's AI Capability Pilot is an example of state-level initiatives that appear and close on a rolling basis. Business Victoria, the NSW Small Business Commissioner, and equivalent bodies in Queensland, WA, and Tasmania all publish updated resources.

Key Takeaways

• The AI Adopt Program creates a network of AI Adopt Centres, aimed at establishing a 'front door' for SMEs looking to explore responsible and safe adoption and usage of AI — and SME access is free of charge.

• The National AI Centre and IATD have committed one million scholarships to support Australians to learn fundamental skills and adopt AI technology in their business operations , delivered through TAFE NSW with no technical prerequisites required.

• Round 3 of the Digital Solutions program introduces expanded funding of over $25 million across three service regions for 2025–30, continuing the government's focus on digital transformation for small businesses, now including emerging areas such as AI adoption and cybersecurity resilience.

• Only 29% of regional organisations in Australia are adopting AI compared to 40% in metropolitan areas — the geographic gap makes government-backed regional support especially important for non-metro SMEs.

• South Australia's AI Capability Pilot Program represents an example of state-level programs that complement federal initiatives, targeting businesses with fewer than 20 employees with practical, tailored AI integration support.

Conclusion

The Australian Government has invested substantially in reducing the cost and complexity of AI adoption for small businesses — but awareness of these programs remains far lower than it should be. The AI Adopt Program, NAIC resources, the Introduction to AI scholarships, and the Digital Solutions program collectively represent a practical, sequenced pathway from AI awareness through to implementation, at minimal financial cost to the business owner.

The most important insight here is strategic: use government programs to build capability and reduce risk before committing to paid tools and platforms. The free resources described in this article — particularly the NAIC's Guidance for AI Adoption and the TAFE NSW Introduction to AI course — provide exactly the foundation you need to make confident, informed decisions about which tools to adopt and how.

From here, the natural next step is understanding which tools are worth your investment. See our guide Best AI Tools for Australian Small Business in 2025: Compared by Use Case and Budget for a structured comparison of the top AI platforms available to Australian SMEs, evaluated against AUD pricing, local integrations, and ease of use. And if you are concerned about data privacy and compliance obligations when using AI tools, our article AI for Australian Business Compliance: Privacy Law, the Australian Privacy Act, and Data Safety addresses those questions directly.

References

• Australian Government, Department of Industry, Science and Resources. "Artificial Intelligence (AI) Adopt Program." business.gov.au, 2024. https://business.gov.au/grants-and-programs/artificial-intelligence-ai-adopt-program

• Australian Government, Department of Industry, Science and Resources. "$17 Million to Boost AI Adoption by SMEs." industry.gov.au, December 2023. https://www.industry.gov.au/news/17-million-boost-ai-adoption-smes

• Australian Government, Department of Industry, Science and Resources. "AI Adoption in Australian Businesses: 2025 Q1." industry.gov.au, March 2026. https://www.industry.gov.au/news/ai-adoption-australian-businesses-2025-q1

• Australian Government, Department of Industry, Science and Resources. "AI Adoption in Australian Businesses: 2024 Q4." industry.gov.au, 2025. https://www.industry.gov.au/news/ai-adoption-australian-businesses-2024-q4

• Australian Government, Department of Industry, Science and Resources. "Spread the Benefits — National AI Plan." industry.gov.au, December 2025. https://www.industry.gov.au/publications/national-ai-plan/spread-benefits

• Australian Government, Department of Industry, Science and Resources. "AI Adoption Tracker." industry.gov.au, 2024–2026. https://www.industry.gov.au/publications/ai-adoption-tracker

• CSIRO / National Artificial Intelligence Centre. "One Million 'Introduction to AI' Scholarships Available to Australians." csiro.au, March 2024. https://www.csiro.au/en/news/all/news/2024/march/introduction-to-ai-scholarships-available-to-australians

• CSIRO. "CSIRO Empowering SMEs Through Digital Technologies and AI Program." csiro.au, June 2024. https://www.csiro.au/en/news/All/News/2024/June/CSIRO-empowering-SMEs-through-digital-technologies-and-AI-program

• Australian Government, Minister for Science and Technology. "Launch of National Artificial Intelligence Centre to Back Australia's AI Future." minister.industry.gov.au, December 2021. https://www.minister.industry.gov.au/ministers/price/media-releases/launch-national-artificial-intelligence-centre-back-australias-ai-future

• Australian Government, Minister for Small Business. "Free AI Education for Small and Medium Businesses." ministers.industry.gov.au. https://www.minister.industry.gov.au/ministers/husic/media-releases/free-ai-education-small-and-medium-businesses

• Australian Government, Treasury Ministers. "Boosting the Digital Capacity of Small Businesses." ministers.treasury.gov.au, 2025. https://ministers.treasury.gov.au/ministers/anne-aly-2025/media-releases/boosting-digital-capacity-small-businesses

• Australian Government. "Australian Small Business Advisory Services – Digital Solutions Round 3." business.gov.au, September 2025. https://business.gov.au/grants-and-programs/australian-small-business-advisory-services-digital-solutions-round-3

• Australian Government. "AI Capability Pilot Program SA." business.gov.au. https://business.gov.au/grants-and-programs/ai-capability-pilot-program-sa

• Victorian Chamber of Commerce and Industry. "Victorian Chamber and Microsoft Launch AI Enablement Program to Build SME Capability." victorianchamber.com.au, September 2025. https://www.victorianchamber.com.au/news/victorian-chamber-and-microsoft-launch-ai-enablement-program-to-build-sme-capability-and-power-australias-ai-economy-

• NSW Small Business Commissioner. "AI Technologies Increasingly Important for Small Business Competitiveness." smallbusiness.nsw.gov.au. https://www.smallbusiness.nsw.gov.au/news-podcasts/news/ai-technologies-increasingly-important-for-small-business-competitiveness

• Fifth Quadrant / Department of Industry, Science and Resources. "AI Adoption Tracker — Monthly Survey Data." industry.gov.au, 2025.