AI for the Underdog: What the Federal Government Actually Thinks About AI and Small Business

On 6 May 2026, Andrew Leigh: the Albanese government’s Assistant Minister for Competition: spoke at Deakin University’s SME Research Centre. It wasn’t a press release or a policy announcement. It was a 2,000-word speech that said something most AI commentary doesn’t: that the real question isn’t whether AI is impressive, it’s whether it helps a small business owner get a decent night’s sleep.

Worth reading. Here’s what he actually said, and why it matters.

The framing: “AI for the underdog”

Leigh opened by noting that too much of the AI debate has been conducted as if the only people who count are big tech firms, big consulting firms, and large corporates. His counterpoint:

“Australia’s economy is built in workshops, clinics, studios, restaurants, building sites, local accountancy practices, family businesses, exporters, repair shops and spare bedrooms.”

At the end of June 2025, Australia had 2.73 million actively trading businesses. Around 97% are small businesses. Almost two-thirds are self-employed or non-employing. That context, he argued, should shape how we think about AI and productivity: because productivity gains only count if they spread to the people actually running those businesses, not just the firms with the biggest IT budgets.

The data: adoption is moving faster than the headlines suggest

Citing recent NAB research, Leigh noted that 42% of SMEs are already using AI, with another 14% planning to. The top uses: administration, marketing, and decision-making. The biggest benefit reported by owners: time back: for the business, or for family.

That last point matters. For a small business, time is the scarcest input. Leigh put it plainly: a large firm has a legal team, a marketing team, a finance team. A small firm often has one person doing all of it after dinner, while also ordering printer toner, chasing an invoice, and wondering why the website stopped accepting bookings.

What “boring AI” looks like in practice

The speech named specific, unglamorous use cases that resonate because they’re real:

• A suburban builder using AI to draft customer updates and prepare first-cut quotes
• A restaurant using AI to cross-reference bookings, weather, and past sales to cut over-ordering
• A sole trader using AI to tame the inbox, prepare a grant application, or turn messy notes into a business plan
• A local retailer using AI to test marketing copy or respond faster to customer questions

He coined a phrase that should be on more people’s walls: “For SMEs, boring AI may be the most beautiful AI.”

Boring AI reads the invoice. Drafts the first version. Checks the roster. Spots the anomaly. Reminds the owner that the customer who bought three months ago might be ready to buy again.

The warning: AI as toll road, not leveller

This is the part most summaries miss. Leigh isn’t simply cheerleading. He named the risk directly: big firms have more data, bigger IT budgets, specialist legal teams, and the ability to absorb mistakes. Small businesses face confusing product claims, real privacy risks, opaque training data, and sticky subscription models. Once workflows are locked into a platform, switching feels like “moving house during a thunderstorm, while the removalists keep asking you to reset your password.”

His concern: a two-speed AI economy where big firms race ahead while small businesses are left with locked-up data and another monthly fee.

Three things small businesses need from AI policy

Leigh outlined three principles he wants to guide how government approaches AI for SMEs:

1. Capability: adoption isn’t automatic. Practical demonstrations, trusted advice, and peer examples matter more than vendor webinars.
2. Choice. AI tools should make it easier to compete, not harder to leave. Data portability matters. Being locked into a platform after building your customer relationships into it shouldn’t be the default outcome.
3. Confidence: many small business owners aren’t anti-technology. They’re anti-wasting-money. They need to know what the tool can do, what it can’t, and when a human needs to stay in charge.

What it means for you

A government minister using phrases like “boring AI” and “killer app may look like getting a decent night’s sleep” is a signal that the policy conversation is catching up with what small business owners actually need. Whether that translates into practical support: accessible training, better data portability rules, clearer privacy guidance: remains to be seen.

For now, the framing is right: AI should help small firms become better versions of what they already are. Not a moonshot. Not a 47-minute onboarding webinar. Just tools that work before the next BAS is due.

Source: Andrew Leigh, ‘AI in practice: Turning hype into measurable SME impact’, Deakin SME Research Centre, 6 May 2026

📖 More deep dives: News Deep Dives →

📊 Compare AI tools side by side | 💼 Free resources & AI prompt packs