AI Drives Corporate Divergence — Some Benefit, Others Are Left Behind — Sydney Auction Clearance Rate at 55%

Weekly Market Focus

A growing body of research suggests that artificial intelligence (AI) is rapidly reshaping the performance of small and medium-sized enterprises (SMEs) in Australia. From cafés to real estate agencies, businesses adopting AI are expanding significantly faster than their non-adopting peers. At the same time, employers are placing increasing emphasis on AI-related skills when hiring. Data shows that around 42% of SMEs are already using AI, with a further 14% planning to adopt it, while 44% have yet to do so.

Adoption rates vary widely across industries. Real estate services, financial services and business services are leading the way, with AI usage rates approaching or exceeding 60%. By contrast, the transport sector lags behind, with adoption at around 21%. Research indicates that data-intensive industries are more likely to adopt AI early, while traditional sectors such as hospitality are also beginning to embrace the technology, signalling its gradual expansion across a broader range of industries.

In terms of outcomes, AI is already delivering tangible benefits. Surveys show that businesses using AI are growing at roughly 2.8 times the rate of those that are not. More than half report time savings, while around one-third say productivity has improved. However, nearly half of businesses still have no immediate plans to implement AI, highlighting a widening divide between early adopters and those taking a wait-and-see approach.

In the labour market, demand for AI-related skills continues to rise. Around 8.5% of job listings now reference AI capabilities, up from 5.8% last year. Beyond data and IT roles, sectors such as marketing, sales and creative industries are increasingly incorporating these requirements. While some businesses have begun adjusting workforce structures in response to AI, its overall impact on employment remains limited. Most analysts believe AI will function primarily as a tool to enhance productivity, rather than fully replace human labour.

Last Week’s Auction Results

Sydney: A total of 1,171 properties were taken to auction, with results reported for 710 properties. Of these, 393 were sold, resulting in a clearance rate of 55%. The total auction value reached AUD 391,631,100, with a median price of AUD 1,500,000.

Melbourne: A total of 1,160 properties were taken to auction, with results reported for 783 properties. Among them, 457 were sold, achieving a clearance rate of 58%. The total auction value amounted to AUD 360,841,976, with a median price of AUD 936,500.