OpenAI and Australia’s dedicated small business lobby are “actively collaborating” on local research, as the American technology company builds its local operations and pushes for favourable AI policies.
The new partnership between the ChatGPT-maker and the Council of Small Business Organisations Australia (COSBOA) also shows the growing importance of small business AI adoption — not just for SMEs, but for titans like OpenAI itself.
OpenAI last week published a report titled Australia’s AI Opportunities, featuring insights gleaned from COSBOA, federal government stakeholders, other business groups like the Business Council of Australia, and industry players like AirTrunk and NextDC.
Prepared by consultant Shahar Merom, the bullish report suggests AI adoption could help small business productivity grow by 7.1% in the next five years, outpacing productivity among larger corporations.
COSBOA chair Matthew Addison told SmartCompany the report emerged from a growing partnership between the two entities.
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“We’re actively collaborating with OpenAI on their Australian research as they establish a stronger presence here,” he said.
The “two-way relationship” combines “OpenAI’s technology insights with COSBOA’s understanding of how small businesses operate, so AI policy and product design genuinely support innovation, access, and growth,” Addison continued.
Through its COSBOA partnership, OpenAI is working with what Addison called “the voice of 2.5 million small businesses navigating AI adoption”.
An OpenAI spokesperson told SmartCompany it is working with COSBOA to understand what AI means to small businesses.
“Small businesses were top of our list as SMEs are a crucial engine of the Australian economy, accounting for more than 97% of businesses,” they said.
OpenAI builds Australian operation
The partnership and the new report are backdropped by OpenAI’s growing efforts to shape Australian AI policies, guardrails, and favourable tax treatment.
In July, OpenAI released an economic blueprint calling for grants and tax boosts for businesses that invest in AI, and updated deductions for companies already adopting AI solutions.
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It also called to boost Australia’s research and development framework “to drive greater business and
government R&D in AI”, among other policy suggestions.
OpenAI did not stop at reports and research.
It recently recruited former Technology Council of Australia CEO Kate Pounder as its local policy liaison, showcasing its domestic ambition.
The firm also pledged to open its first Australian office in Sydney, and gave digital agency Rocket the go-ahead to help other businesses adopt its AI tools.
COSBOA’s AI approach
Findings included in the new report don’t necessarily reflect the views of any supporting organisation.
But COSBOA is broadly optimistic about AI and its potential for local small businesses.
“The key now is translating these wins across the entire small business sector through accessible training, affordable tools, and trusted frameworks that make AI adoption achievable for every small business owner,” said COSBOA COO Will Harris.
Separate to the latest report and OpenAI research partnership, COSBOA vocally supported AI and its potential for small businesses across Australia in recent months.
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The group supported a “light-touch” approach to AI regulation as part of a Productivity Commission review.
It also rejected a NSW Labor government proposal that would drive union-employer disputes over AI use to arbitration.
“Without the right regulatory and policy settings, we could see zero gains,” Addison told SmartCompany.
“Other countries are moving fast – Singapore, Korea, they’re all-in on AI. Every month we debate, they accelerate.”
COSBOA is also responsible for the Small Business Peak AI bot, designed to answer questions about industrial relations reform.
With financial support through the Department of Employment and Workplace Relations and its Productivity Education and Training Fund, that bot was one of the first government-backed, public-facing AI tools released in Australia.
The bot uses “multiple AI models… OpenAI, Anthropic, Perplexity, whichever delivers the best results,” said Addison.
Australia a small business test case
Addison said the Australian small business landscape could provide valuable lessons for OpenAI, helping its efforts abroad.
“Australia is the ultimate stress test for AI,” he said.
“If these tools can help a cafe owner navigate our tax system, manage super obligations, interpret modern awards, and stay compliant – they’ll work anywhere.
“We’re not just another market; we’re the proving ground for global small business AI adoption.”
The importance of Australian small businesses to OpenAI itself is also clear in the latest paper.
Instead of developing their own technology systems or new ways of work, the report suggests small businesses will reap productivity gains by plugging into ‘AI as a service’ tools.
This plug-and-play model makes AI “more scalable across multiple small businesses, compared to productivity gains requiring significant investment in machinery and other hardware,” according to the report.
But as OpenAI technology underpins many ‘AI as a service’ businesses, mass adoption among small businesses would indirectly benefit the $765 billion company.
