• While three quarters of SMEs expect their cost of doing business to increase in 2025, many plan to invest more in new technology to meet these challenges
• 41% plan to increase tech adoption, and a third plan to use more AI and invest more in cybersecurity
• Businesses and consumers optimistic about economic impact of potential rate cuts in 2025

Business owners say 2025 will be the year they increase their adoption of AI and invest more in new technology and cybersecurity to boost their efficiency, productivity and competitiveness.

New NAB insights from 600 SMEs reveal business owners are looking to greater and deeper adoption of technology in the coming 12 months to help them contend with rising costs of doing business.

One in four business owners are planning to increase the adoption of new technology while a third are planning to embed more artificial intelligence in their operations and strengthen cybersecurity protections.

NAB Group Executive Business and Private Banking Rachel Slade emphasised the importance of technology adoption and investment for business growth.

“The pace of technology adoption is transforming the business landscape and business owners are keenly aware of its potential to help them grow, thrive and adapt,” Ms Slade said.

“Business owners clearly recognise the need to stay ahead of tech advancements, but they also realise that greater tech investment can help them better manage whatever challenges 2025 throws at them.

“Boosting tech investment is helping business owners to safeguard against the rising risks of cyber threats and scams, speed up processes, reduce operational errors and improve communication with customers.

“As the risk of cybersecurity threats and scams rises, businesses are recognising the investment needed to bolster protection, safeguard their assets and maintain the trust of customers and suppliers.

“Artificial intelligence has the potential to be a game changer for businesses looking to eliminate time consuming manual processes, automate repetitive tasks and better manage inventory.

“Despite challenges including rising costs and red tape, business owners remain optimistic that 2025 will be a defining year with tailwinds including potential rate cuts, higher revenue and increased customer demand.”

Tyrone Dickson and Darren Nichol are the co-founders and directors of April Sun Farms, a sustainable Melbourne-based vertical farm that uses cutting-edge technology to produce high-quality, pesticide-free microgreens year-round including rocket, red cabbage, Swiss chard and red Russian kale.

“We’ve really embraced an innovation-first mindset by investing in cutting-edge technology and focusing on research and development. This includes creating our own unique components and systems that use machine learning and AI,” Mr Dickson said.

“Our goal is to reduce the resources needed to produce a steady and reliable supply of food, which is essential for food security. At the same time, we’re working on building a highly efficient farm known as a ‘total-controlled agriculture environment,’ or TCEA for short.

“What makes our approach stand out is that it uses less energy than other solutions, like greenhouses,” Mr Dickson said.

“By sticking to our innovation-first approach, we’ve made significant progress in cutting down energy use. In fact, our proof of concept has achieved more than a 40% reduction in the energy needed to produce a kilogram of product compared to local greenhouses,” Mr Nichol said.

In 2024, April Sun Farms was recognised for its innovation, outstanding performance and proprietary technologies as a top four finalist in two categories ‘Best Resource Efficiency’ and ‘Best Technology Advancement’ at the Vertical Farming World Awards in Frankfurt.

“The main advantage of using machine learning and AI is that we can achieve results faster and more accurately. A bonus is that it frees up valuable time for our team,” Mr Dickson said.

“By using these systems to manage and control our growing conditions, we’ve been able to consistently deliver top-quality products on time while using the least amount of energy. This has improved overall product quality and cut down on waste.

“Plus, it lets Darren and I focus on other tasks that help grow our business, creating even more efficiency in the process,” Mr Dickson said.

NAB’s new business survey also reveals:

• 76% of small and medium business owners expect their cost of doing business to increase while 41% believe the level of red tape will increase
• 35% say they’ll face a more hostile cybersecurity and scam environment
• 33% predict higher revenue and 29% expect their number of employees to increase
• Proactive investment in cost reduction and revenue generation technology can help business owners achieve efficiency and productivity gains
• Business owners have also identified improvements they can make by streamlining operations, negotiating with suppliers and reducing energy consumption

Extra information:

Data taken from NAB Economics Business Insights survey of 600 SMEs.