New research from Amazon Ads reveals that small and medium-sized businesses (SMBs) across Australia are bullish about the future impact of AI in advertising on their business. The research
shows that 87 per cent of SMB marketing leaders believe that AI in advertising will help support future growth by creating more time for strategic business priorities.
The study also found that nearly three quarters (72 per cent) of SMBs are already either using or actively testing AI tools for advertising purposes. However, many face challenges in implementation, with approximately half feeling overwhelmed by the number of tools available and others eager to adopt AI in advertising but uncertain how to begin.
Unlocking future growth
SMB marketing leaders estimate they could save approximately 7.3 hours each week—about 45 working days annually—by implementing AI tools to create and manage their advertising campaigns. They plan to use this time to drive business growth in various ways: 28 per cent intend to focus more on sales activities, 28 per cent on developing team skills, and 28 per cent on exploring new marketplaces and channels they previously lacked time to pursue.
SMBs also expect a 27 per cent reduction in advertising costs over the next year thanks to AI-enabled efficiencies through reduced time on data analysis (39 per cent), better predicted campaign performance (25 per cent), improved campaign reporting and optimization (28 per cent) and media planning support (31 per cent).
AI in advertising today
Of the 72 per cent of SMB marketing leaders currently using or testing AI advertising tools, many are already seeing tangible benefits. Those implementing these tools are enhancing their advertising campaigns through automated visual creation (13 per cent), improved performance forecasting (9 per cent), and automated ad copy generation (8 per cent)—capabilities that were once available only to businesses with substantial resources.
The study also found that SMBs expect to experience additional benefits to their advertising campaigns in the future, including improved audience reach (44 per cent), accelerated creative content generation (39 per cent), and automation of repetitive advertising operations (30 per cent).
Confidence gaps remain
Despite widespread use and testing of AI tools, confidence isn’t universal among SMBs. The study found that 45 per cent of marketing leaders feel overwhelmed by the number of tools available, 50 per cent are excited about AI in advertising but don’t know where to start, and 44 per cent admitted feeling like they’re “faking it” when using AI—highlighting the need for easy-to-use advertising solutions that can be adopted without technical expertise or a steep learning curve.
Control still matters
Despite these implementation challenges, SMBs have a clear vision of how AI best fits into their advertising strategy. The research shows that SMBs want to preserve human involvement in key decisions, particularly final creative approval (38 per cent), budget allocation (32 per cent), and understanding cultural and emotional context (31 per cent). This balanced perspective indicates that SMBs see AI as a powerful assistant that complements rather than replaces human expertise and judgment.
“For SMBs, time is a precious resource—every hour saved is time that can be spent growing the business or serving customers better,” said Willie Pang, general manager Australia, Amazon Ads.
“That’s why we’ve built AI capabilities into familiar tools to make the process simple and effective. Our AI-powered tools such as Image Generator and Video Builder help businesses easily produce standout ads, letting them get back to what they do best: building their business.”
