AIML launches Industrial AI SME Grant Program to accelerate South Australian business innovation
Small and medium enterprises (SMEs) across South Australia now have the opportunity to adopt artificial intelligence (AI) and machine learning (ML) within their operations with the launch of the Industrial AI SME Grant Program. This Australian Institute for Machine Learning (AIML) program is supported by the South Australian Government through the Department of State Development’s Research and Innovation Fund.
The Industrial AI SME grant program was officially launched on Tuesday, 3 June 2025 at an event hosted by AIML’s Institute Manager, Dr Kathy Nicholson, and Engineering Manager, Jonathon Read. South Australia’s Assistant Minister for AI and the Digital Economy, Michael Brown, MP opened the event, underscoring the importance of making AI more accessible to all industries.
“AI is no longer a technology of the future. It’s the technology of today,” said Assistant Minister Brown. “The Malinauskas government is proud to support AIML. Our goal is to make [AI] more accessible to a broader range of businesses, and not just those in the tech sector. As AI becomes more user-friendly and affordable, the barriers to entry are lower than ever before. So far, we’ve seen local manufacturers, agricultural businesses, the education sector, and even government agencies iron out persistent industry problems, thanks to AI.”
“I commend those who have taken the initiative, identifying opportunities, gathering data, and investing in tools and training.”
Dr Kathy Nicholson and Jonathon Read hosting the Industrial AI SME Grant Program Webinar at the Government of South Australia’s Department of State Development studio.
Making AI practical, impactful, and accessible for South Australian businesses
With AI framed as a strategic opportunity for South Australia, our AIML hosts introduced the two dedicated program streams designed to help SMEs adopt AI solutions tailored to their specific business needs.
The AI Road Map helps businesses that are new to AI understand their operational pain points and identify areas where AI could deliver value. For businesses further along their innovation journey, the ML Innovate stream supports the development of bespoke AI solutions. Both streams offer in-kind engineering support delivered by AIML’s expert Industry Solutions team.
“Rather than it being a cash grant, the way [the program] works is that the engineering time has been prepaid for,” said Read. “It removes the barrier of having to be too focused and concerned about how to fund the engineering side and [instead] you can look at what you’re wanting to do [with AI] and evaluate its merits”.
In his presentation titled “Unlocking Business Potential with AI”, Read presented key statistics on the benefits of AI adoption and the current state of AI usage across the country.
"Businesses that adopt AI and start using it within their processes see an increase in earnings or productivity. In some cases, these increases can be up to 40% in productivity gains,” he said. “But only about 35% of Australian businesses are currently using [AI].”
Read also noted that just 19% of South Australian businesses are utilising AI, highlighting a significant opportunity for local SMEs to lead the charge in the state. He encouraged businesses to explore how AI could be used to automate repetitive tasks or optimise core operations including inventory management, cost forecasting, and customer service.
Expanding on this, Dr Nicholson emphasised that while AI can be a powerful tool for improving efficiency, its success depends on how well it's integrated into existing roles and business capabilities. Clear communication, realistic expectations, and team engagement are essential to ensuring that AI enhances, not disrupts, how people work.
“When we think about AI, we think about it as businesspeople. It’s a change management process,” said Dr Nicholson. “And in change management, number one is about communication and being realistic about what’s possible [with your team].”
“At the end of the day, that human element and that ability to ensure that everybody in your team is part of the journey is probably one of the most important parts.”
From proof of concept to commercial advantage
As a feature component of the event, AIML screened a series of video interviews featuring local businesses that have worked with AIML’s Industry Solutions team to develop AI solutions tailored to their industries. The interviewees included Andrew Hannell, Founder of Digital Constructors; Anna Falkiner, CEO and Co-founder of Cropify, Dr Antonios Perperidis, Senior Machine Learning Engineer at Cropify; with additional engineering insights from AIML members Deval Shah, Senior Machine Learning Engineer, and Jonathon Read.
Digital Constructors now applies AI in construction inspections to improve safety and efficiency on-site. Cropify is using computer vision to automate how grains and pulses are graded, removing subjectivity and improving speed and consistency in global supply chains. In both cases, each business co-developed a functional prototype with AIML in an earlier iteration of the Industrial AI SME Grant Program.
“We spoke to a lot of people, and someone suggested that [computer] vision had come a long way,” said Falkiner in her interview. “We looked at horticulture and what was being done in [that field] and then approached the Australian Institute for Machine Learning (AIML) and had a proof of concept done.”
“There are a lot of misconceptions that any AI has to be some kind of mind-blowing generative AI,” said Hannell in his interview. “But something as simple as counting potholes in a road and recording where they are could save millions or hundreds of millions of dollars.”
Dr Nicholson also acknowledged several other South Australian SMEs that have achieved significant outcomes by collaborating with AIML, including projects where AIML engineers helped companies refine their data strategies or test new ideas. Some developed internal tools that paved the way for future investment and training.
“So, while [another SME we worked with] never actually used the prototype we created, what that prototype did was that it allowed them to show the concept to their salespeople, to their design people, to the non-technical members of their company,” said Dr Nicholson. “Those people then got on board with [AI] and invested in having engineers in-house to build those types of prototypes themselves.”
Designed for South Australian businesses
The final component of the event was a live Q&A, with our AIML hosts answering questions from audience members representing businesses across South Australia. Questions ranged from what kinds of businesses could apply, to how businesses without technical expertise can get started, and what amount and type of data is needed to apply.
“Some of the businesses we’re talking to at the moment are law firms, accounting firms, food and beverage makers, people involved in agriculture, people involved in mining. It is incredibly diverse,” said Dr Nicholson in response to a question about regional SMEs having access to the program.
“Good quality data [is] data that relates to the problem at hand,” said Read in response to a question about data requirements. “You don’t necessarily need to have all of the data. There are ways to acquire it. Data can also be generated”.
Read encouraged South Australian SMEs to reflect on their current challenges and explore whether AI could offer a practical solution, emphasising that even early-stage interest is enough to start a conversation with the AIML team.
“Why should you act now? You can really gain a competitive advantage because there’s not a lot of businesses currently doing this,” said Read. “Once you’ve got that great idea and you’re ready to move ahead, there’s the technical support when you need it.”
“You can start benefitting from these tools today.”
AIML's Industrial Solutions team will be supporting South Australian SMEs to adopt AI into their businesses.
Express your interest in the program today
The Industrial AI SME Grant Program is open to SMEs registered and operating in South Australia, with fewer than 200 employees and less than $20 million in annual turnover. At least 50% of operations must be based in the state, and all sectors are encouraged to apply, including regional, non-tech, and traditional industries.
To view all eligibility criteria, please view the official guidelines.
Click here for more information about the Industrial AI SME Grant Program
To express your interest in the program, please contact industrialai@adelaide.edu.au
To read more about how local companies created successful collaborations with AIML, please visit our Case Studies page.