AI is accelerating everything, and acceleration without capability creates exposure rather than advantage. In this talk, delivered at Economic Development Australia's National Roadshow in March 2026, 25eight CEO Sam Hurley unpacks what the data says about how small and medium businesses are engaging with AI, where the real gaps sit, and what it takes to build genuine capability rather than surface-level adoption.
The talk draws on 25eight's Small Business Capability Gap Index to show where digital confidence actually sits in SMEs, and makes the case that AI multiplies both strengths and weaknesses. A business with clear processes and strong judgement gets faster and sharper. A business with weak foundations automates its problems, like putting solar panels on faulty wiring. The talk also traces the shift from AI tools to AI agents and the rising leadership requirements that come with handing over more autonomy. The closing argument: human capability is now the most significant competitive advantage in a local economy, and it is built deliberately rather than absorbed from tools.
Key points
- AI multiplies what is already there, so weak foundations get amplified along with strong ones.
- Most SME AI adoption remains surface level; real value needs deliberate capability building.
- The shift from tools to agents raises the bar for leadership and oversight.
- Foundations come before automation: process, judgement and data habits first.
- Human capability is the durable advantage; the tools keep changing underneath it.
For the broader picture of building AI capability across a small business, start with the hub page AI for small business.
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