If 2024 was the year of headlines and hype about the role of AI in everyday life, 2025 will be the year that Australian businesses get serious about putting it to use – turning AI from an interesting toy into a practical tool. 

This is supported by the fact that almost 1 in 3 businesses (32%) expect to invest in AI this year, according to our latest NAB Business Insights. 

It makes sense. Sure, we’re still not at a stage where AI-enabled robots are driving our trucks, AI lawyers are drafting our legal contracts, or AI drones have replaced our delivery drivers. But there are plenty of innovative tools already available, and they can make a real difference to margins, productivity and the bottom line – all areas that businesses reported difficulties with in 2024.  

In fact, for many Australian businesses, AI technology is already ticking away behind the scenes, whether that’s through the suppliers they use or directly integrated into their operations. It could be in the form of an automated bookkeeping service they subscribe to, a shipping and logistics platform they rely on, or the software that monitors and operates their plant and equipment. 

Customers are also benefiting from the accessibility that AI can offer them. Our customer story this month shares the experience of an established Australian retail brand that’s using AI eCommerce recommendations to reach more customers and help them get more out of their interactions. 

As with any technology, the right AI tool should make your working day easier, and help you get more out of it. We’re not yet ready for robot butlers, but we’ll be getting some interesting new solutions in 2025. 

AI integration set to ramp up 

More than 4 in 10 businesses (41%) expect to increase their adoption of technology to enhance their business in 2025. Almost 1 in 3 businesses (32%) expect to invest in AI. Business models, as well as technology, are rapidly evolving, so expect to see different pricing brackets and strategies come to market in 2025.

Cyber security investment on the rise 

Resources are flowing into cyber security, with 30% of businesses looking to channel money here. That’s not surprising given over 1 in 3 businesses (35%) anticipate an increase in cyber security and scam risks this year.

Costs expected to rise, but revenue may follow 

More than three quarters of businesses (76%) expect prices to increase in 2025, with concerns over costs and margins continuing from 2024. However, 1 in 3 (33%) anticipate higher revenue. For businesses with the right operating and trading strategies, it may be possible to achieve growth in tightly priced markets.

Still caution around rate cuts  

The welcome cash rate cut has occurred, but we maintain this will be a gradual easing cycle. The RBA will likely remain cautious in its approach, but we see the cash rate falling to around 3.1% by early 2026.

GDP ticking up, driven by consumers

Our outlook continues to be for a soft landing, with an uptick in consumer spending to drive growth of around 2.25% over 2025 and 2026. However, there’s still uncertainty around the timing and scale of the consumer spending recovery. There’s also a risk that the labour market re-tightens with the pick up in growth later this year.

Fitness apparel brand leads way with AI use 

One of our business customers has been a leader in the fitness apparel space for over a decade. A forerunner in the athleisure market, they’ve built a successful lifestyle brand with a dedicated customer base. 

Product quality and customer understanding are core to their business. They’ve also been early to understand the importance of eCommerce, and how complex and sophisticated their retail channels and supply chains can be as a result of importing product from China and selling across multiple platforms. 

They’ve put in the sweat and tears necessary to reach their target market, offering flexible ways to shop and pay. Now, they’re strengthening their strategy by integrating a number of AI shopping recommendation solutions. 

These allow the business to recommend various items to customers based on their preferences and behaviour – either on-page or via email, depending on where they’re most comfortable. Not only does this help customers save time spent in the store, it means they’re more likely to be satisfied with their final purchase. They’re also more likely to spend – a big plus for the business’ bottom line.  

Of course, greater demand is only beneficial if you have the stock to support it.  

To this end, the business has also worked with specialists in the Foreign Exchange (FX) team at NAB to manage its currency risk and stock levels. With heavy sales volume over Christmas, and anticipating demand over coming months, the company placed a number of forward orders with the NAB FX team to manage exchange rate uncertainty when it came time to pay for these orders from its international supplier.  

Strategies such as these can provide a degree of protection and remove some of the uncertainty surrounding market fluctuations, which ultimately impact a business’ bottom line.  

Combined with the embrace of eCommerce and AI solutions across its operations, our customer remains well placed to stay ahead of the competition.