Artificial intelligence leader OpenAI is deepening its ties in Australia through a strategic partnership with the Council of Small Business Organisations Australia (COSBOA). This collaboration aims to foster local AI research, promote small business adoption of AI technologies, and shape favorable policy and product development for the sector.

• OpenAI and COSBOA are actively collaborating on local AI research as OpenAI expands its Australian presence.
• A recent report highlights AI’s potential to boost small business productivity by 7.1% in five years.
• The partnership focuses on ensuring AI policy and product design genuinely support small business innovation and growth.
• Australia is seen as a crucial "proving ground" for global small business AI adoption.

OpenAI, the company behind ChatGPT, is working closely with COSBOA, representing over 2.5 million small businesses in Australia. This "two-way relationship" leverages OpenAI’s technological expertise and COSBOA’s deep understanding of small business operations. The goal is to create AI policies and products that are genuinely beneficial for innovation, access, and growth within the small business sector.

Matthew Addison, COSBOA chair, stated that the collaboration is vital for understanding the impact of AI on small businesses, which are a critical engine of the Australian economy, accounting for more than 97% of all businesses.

A recent report, "Australia’s AI Opportunities," co-authored with insights from COSBOA and other key stakeholders, projects significant productivity gains for small businesses through AI adoption. The report suggests that AI could enhance small business productivity by 7.1% over the next five years, potentially outpacing larger corporations. This growth is expected to come from small businesses integrating "AI as a service" tools, a more scalable approach than investing in new hardware.

This partnership is part of OpenAI’s broader strategy to establish a stronger presence in Australia. The company has been actively engaging in policy discussions, advocating for grants, tax incentives, and enhanced research and development frameworks for AI. OpenAI has also appointed former Technology Council of Australia CEO Kate Pounder as its local policy liaison and plans to open its first Australian office in Sydney.

COSBOA views Australia’s diverse small business landscape as an ideal "stress test" for AI technologies. If AI tools can successfully help Australian small business owners navigate complex areas like tax systems, superannuation obligations, and compliance with modern awards, they are likely to be effective globally. This makes Australia a crucial "proving ground" for worldwide small business AI adoption.

COSBOA itself is optimistic about AI’s potential and advocates for accessible training, affordable tools, and trusted frameworks to facilitate widespread adoption. The organization also supports a "light-touch" regulatory approach to AI, emphasizing the need for swift action to avoid falling behind other nations actively embracing AI.

• OpenAI partners with small business lobby amid Aussie expansion, SmartCompany.