AI’s Democratisation Dilemma: How Australian SMBs can keep up
By Krishna Sai (pictured), Senior Vice President of Engineering, SolarWinds
Artificial Intelligence (AI) has transitioned from a futuristic concept to a central component of modern business strategy. From large language models like ChatGPT to hyper-personalised marketing engines, AI is now an everyday tool for consumers and a critical driver of enterprise transformation. For large enterprises, the integration of AI is not only accelerating innovation but also transforming operations at scale. However, for small and medium-sized businesses (SMBs), the path is less clear and often far more challenging.
The prevailing narrative suggests that AI will level the playing field for smaller businesses, offering access to tools once exclusive to larger corporations. However, this vision overlooks a growing disparity: the AI readiness gap. According to the National AI Centre (NAIC), 42% of surveyed Australian SMBs have no plans on adopting AI, while nearly a quarter (23%) admit they don’t know where to start. This signals a deeper dilemma: accessibility doesn’t always translate to usability. The question is no longer whether AI will impact business success, but how smaller organisations can harness its power to remain competitive.
The readiness gap: more than just a technology problem
The AI readiness gap for SMBs is not simply about access to tools; it’s a multidimensional challenge encompassing skills, strategy, mindset, and infrastructure.
Enterprise organisations, backed by vast budgets and in-house data science teams, are embedding AI into every facet of their business. Meanwhile, SMBs are often grappling with how to keep the lights on day to day while exploring transformative technologies. They might lack the resources, skills, and digital maturity to identify where and how AI could fit into their business.
This is where the misconception of AI ‘democratisation’ needs to be challenged. Many AI platforms are now widely available thanks to cloud computing and open APIs. But true democratisation isn’t about availability—it’s also about usability, scalability, and trust. It’s not enough that AI platforms are theoretically within reach; the critical question is whether they are usable, valuable, and scalable for businesses without deep technical bench strength or multi-year transformation budgets.
The SMB playbook: how to leverage AI now
The good news is that AI is already present in many tools that SMBs use daily, even if it’s not always visible. From email marketing platforms that recommend optimal send times to CRM systems that suggest the next best actions, “invisible AI” is quietly boosting productivity behind the scenes.
Rather than requiring SMBs to become AI experts overnight, usability-focused AI allows businesses to benefit from advanced capabilities through familiar use cases.
At SolarWinds, we take a principle-led approach to product development. AI by Design is our approach to AI development. It’s a framework to help our customers establish a secure, productive, and enduring relationship with AI-driven solutions. Here’s how SMBs can begin leveraging AI today, aligned to our AI by Design principles:
Turn down the noise: guided by simplicity and authenticity
The AI landscape can be overwhelming, particularly for businesses just beginning their journey. Start with familiarity and focus on clear, ROI-driven use cases that solve business pain points, like automating support or streamlining infrastructure management.
Don’t chase complexity. Instead, look for intuitive tools that integrate seamlessly into your existing workflows, helping teams make faster, smarter decisions – without steep learning curves.
Use AI-as-a-Service: backed by privacy and security
For SMBs without in-house AI expertise or infrastructure, AI-as-a-Service (AIaaS) platforms offer a scalable and cost-effective entry point. But offloading AI to the cloud doesn’t mean offloading responsibility – privacy and security must remain paramount.
Role-based access control (RBAC), multi-factor authentication (MFA), anonymisation, and real-time auditing help ensure data is always safeguarded. When selecting AI partners or platforms, SMBs should seek vendors who treat data governance and user protection as non-negotiable.
Invest in upskilling: framed by accountability and fairness
AI tools are only as effective as the people who use them. Upskilling teams—not just in technical skills but in AI literacy—is essential to building confidence and capability. Empower teams to ask better questions and work effectively alongside AI. At the same time, it is equally important to foster responsible engagement with AI.
Stay agile and practical: anchored by trust and transparency
AI is evolving fast, and SMBs don’t need to predict the future. They just need to stay open to learning. Building trust is essential, especially when AI is embedded in decision-making processes.
Through clear MLOps pipelines and visibility into how decisions are made, users are empowered to understand and validate AI outputs. SMBs should demand the same level of clarity from their technology partners.
The promise of AI for SMBs is real, but realising it requires more than access to the technology – it demands a thoughtful strategy, a focus on usability, and a commitment to continual learning. By removing complexity, prioritising the proper use cases, and embracing flexible models like AI-as-a-Service, SMBs can bridge the readiness gap and unlock transformative value.
