Australian mid-sized businesses are increasingly investing in artificial intelligence (AI) to strengthen operations and offset ongoing economic and international headwinds, according to new research from leading provider of business management solutions, MYOB.
Over a third (35%) of surveyed businesses using AI say it has already reduced their reliance on engaging external marketing services, while a similar number (33%) report more efficient administration and data management. More than a quarter (28%) are using AI to upskill their existing teams.
AI has also been deployed to help plug a resourcing gap with 30% of businesses adopting AI tools to supplement their workforce. This may alleviate the impact of hiring freezes, which around 30% of respondents have put in place to combat the cost pressures arising from interest rates and international tariffs.
Leaders and decision-makers from more than 500 mid-sized businesses (with 20-500 full-time employees) participated in the research, which explored themes including sentiment towards sector health, technological adoption and perceived barriers to growth.
MYOB CEO Paul Robson said the findings indicate the sector is backing technology to balance interest rate pressure, rising costs and global trade constraints while setting up for long-term success.
“More than half of the mid-sized firms surveyed believe the Australian economy will improve over the next 12 months and AI will be a valuable lever to lift productivity, contain costs, and create operational efficiencies,” said Paul.
“AI’s ability to lower cost pressures through automation and smarter resource allocation will allow mid-sized businesses to remain agile and resilient while enabling their teams to focus on growth.”
Looking ahead, the research revealed more than half of mid-sized businesses intend to mobilise AI to improve customer relationship management in the next 12 months while a further 47% will adopt AI tools to optimise supply chain management. Other areas targeted for automation include customer service, payroll management and financial reporting.
Many mid-sized firms are turning to technology more broadly to boost productivity and gain a competitive advantage. The top areas flagged for digital investment over the next 12 months include customer relationship management, finance and accounting management software, enterprise resource planning, payroll and workforce management systems.
“This increased investment could be a reflection of growing confidence, with 60% expecting revenue to rise in the coming 12 months,” Paul said.
In terms of barriers to growth, the survey revealed that the cash rate was considered the biggest challenge to operations in the past year.
“Despite 52% of mid-sized businesses seeing increased revenue this year, the cash rate may have caused some to delay expansion plans or hold off on hiring,” Paul said.
“A quarter of mid-sized businesses believe the cash rate would need to fall by at least one percentage point to facilitate greater growth.”
Nearly half (49%) of Australia’s medium-sized organisations reported that recent US tariffs have also had a negative impact on their operations, adding a layer of complexity to the local trading environment.
In response, businesses are taking proactive steps to reduce risk including locking in supply contract costs and building up cash reserves to cushion against increased costs or potential disruptions.
Notwithstanding these challenges, Paul said the mid-sized business segment continues to demonstrate resilience.
“Mid-sized companies in Australia have been strong in a challenging year and while they are still facing some cost pressures, there’s clear optimism about what 2026 holds.
“It’s clear from the data that businesses are putting strategies in place to manage risks while preparing to maximise opportunities.”
About MYOB
MYOB is a leading provider of cloud-based business management solutions with a core purpose of helping more businesses in Australia and New Zealand to start, survive and succeed. MYOB’s next-generation technology platforms deliver end-to end solutions for people and finance through to tax, supply chain, projects, employees and customers, empowering businesses with 0 to 1000 employees alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.