AI creates a ‘level playing field’ for SMBs, LinkedIn research finds

More than three in 10 Australian professionals said that AI has made them “more likely” to start their own business, research has found.

Based on its findings, LinkedIn members who added “founder” to their profile increased by 58 per cent from July 2024 to July 2025 – which is more than triple the number of “founders” in July 2022.

For its report, Small Business Work Change, LinkedIn explored how small to medium businesses (SMBs) have been using AI to “overcome challenges” and “accelerate growth”.

Sixty per cent of Aussie SMEs said AI was instrumental for growing their business, the data revealed. Further, 86 per cent of respondents said they found a candidate after posting an AI-generated job advertisement, it revealed, with a 44 per cent higher response rate compared to “standard outreach”.

LinkedIn ANZ managing director Matt Tindale (pictured) said that through the use of AI, businesses are “hiring faster” and “building stronger brands”.

“The time saved using technology is the time spent on cementing strong networks and relationships that deliver growth,” he said.

Australian SMEs growing

More than one in two (58 per cent) Aussie SME leaders said AI is “essential” for their growth, and 79 per cent of Aussie marketers agreed that AI allowed smaller brands to compete with larger brands.

Tindale said: “AI is accelerating entrepreneurship and helping small businesses build brand credibility, visibility and trust, while hiring faster than ever. That shift is resetting expectations around speed, sourcing, and candidate experience for everyone.”

Tindale said Aussie small businesses are entering the new year with “confidence”, as their use of AI and technology helps them to compete with larger players in their industry.

AI usage among SMEs

AI is currently being used “in some form” by 84 per cent of SMEs, the findings revealed, with 68 per cent having plans to expand AI adoption in 2026.

The report also found that 54 per cent of SME owners said their company is actively investing in AI tools, with 38 per cent learning AI either in their own time, paying for courses, or upskilling. It also revealed that companies with 11–50 workers observed skills growing 13 per cent year on year, with AI literacy surging 32 per cent.

Despite adopting these new technologies to stay competitive, these companies continue to “stay grounded” in authentic human connections with their colleagues and clients. Based on its findings, over 80 per cent of Aussie companies of all sizes agreed that people skills are more important than AI.

“AI isn’t just an efficiency tool anymore; it’s changing how organisations compete for skills, build teams and scale. For HR leaders, this is a real opportunity to embrace AI, hire smarter, reduce friction, and free up time for strategic people leadership,” Tindale said.