Zendesk’s Sean Woodward explains why AI agents are turning resource-strapped small businesses into strategic competitive powerhouses today.
Australian small businesses are the heart of our communities and the backbone of our economy.
For many, the daily reality of running a business can feel like an uphill battle. Owners juggle limited resources, aim for greater efficiency, and face growing competition, all while trying to keep growth on track. It’s a delicate balancing act, and scaling often feels like it comes at a cost – long hours, more staff to manage or major new investment.
For years, larger companies have relied on advanced technologies and well-resourced teams to get ahead, leaving smaller businesses stretched thin. That dynamic is shifting. With AI becoming more accessible, tools like copilots and AI agents are giving small businesses the chance to compete on a new level – by working smarter rather than harder.
This isn’t a distant possibility. It’s already here: AI can step in to manage repetitive tasks, provide customers with round the clock support, and give teams the space to focus on what matters most: building meaningful relationships. For small businesses, that means the ability to grow at scale and establish a lasting competitive edge without being held back by the usual constraints.
Unlocking productivity and driving faster resolutions
For small businesses, one of AI’s greatest strengths lies in its ability to automate every day customer service tasks. Consider the hours spent arranging parcel pick-ups, answering the same login questions – like forgotten passwords, or chasing down order information. These tasks are essential, no doubt, but they eat up valuable time and pull focus away from what really matters: creating exceptional customer experiences.
With AI, small businesses can revolutionise their customer experience without having to expand teams or stretch cash flow. Take AI copilots for example, digital assistants built to collaborate with employees. They can assist small businesses with everything from summarising customer queries to drafting tailored replies and surfacing information instantly. It’s no surprise Zendesk’s CX Trends Research found 80% of Australian customer service agents believe an AI copilot would help them to do their work faster, more accurately, and with greater confidence.
Agentic AI agents take this a step further. Unlike copilots, which assist employees, these autonomous systems can manage and complete entire workflows from start to finish. Answering a product enquiry, checking live stock levels and even processing orders, all without human intervention. The benefit? Staff are freed to focus on strategic, high value work where human judgement really matters. For businesses, it means faster resolutions and smoother customer experiences, delivered with minimal technical overhead. When copilots and AI agents work together, small businesses unlock something even more powerful: a transformative customer experience that’s faster, smarter and more personalised than ever before.
Real-world impact: Lush’s story of AI-powered transformation
Even for a global brand, the path to growth is profoundly relevant for a growing Australian franchise or startup. Lush, a leading cosmetics retailer, is a great example of how AI can supercharge growth.
From humble beginnings, Lush has grown into a global success over the last thirty years with stores across the world. One of the challenges it faced as it grew was that its small customer support team found themselves swamped with repeat requests. Lush knew it needed to find ways to improve the customer experience to deliver faster resolutions and turned to AI, launching an AI agent called “Marvin”.
With “Marvin” taking care of high-volume questions such as sales and discounts, its customer support team was freed to focus on more complex issues that required their critical thinking and expertise. The decision to use AI has translated into productivity improvements of 30% and over $434,000 in annual cost savings. Moreover, Lush’s investment delivered a 369% return on investment.
Lush’s story highlights how a business can use AI not just for efficiency but for significant strategic growth. By embracing AI to handle the repetitive, high-volume queries, Lush was able to turn a small team into a strategic, customer-focused powerhouse.
Empowering teams with accessible and responsible AI
For many small businesses, AI can feel out of reach. Something costly, complex and reserved for bigger players. But that’s no longer the case. With today’s low-code, and no-code platforms, anyone can design automated workflows in minutes. This empowers smaller teams to adapt quickly, respond faster to customer needs and capture opportunities without waiting on technical expertise.
Accessibility is no longer just about ease of use, it’s about affordability too. Outcome-based pricing models mean you only pay for measurable, tangible results delivered by AI, like the support queries resolved by AI agents. Costs and value move in lockstep, giving small businesses the freedom to experiment, scale gradually, and manage budgets with confidence as the business grows.
Of course, accessibility and affordability aren’t enough. Small businesses also need assurance that AI is used safely and ethically. That’s why it’s critical to choose partners who build on responsible AI frameworks – systems that prioritise data security, privacy and fairness, especially in customer-facing interactions. Responsible AI is more than just compliance: it’s the foundation of customer trust, and it turns everyday improvements into a long-term competitive advantage.
A smarter future for small businesses
The adoption of AI agents and copilots isn’t just about efficiency, it’s about fundamentally changing how small businesses operate, grow, and compete.
This shift isn’t about replacing human jobs, but an augmentation of human capabilities. By embracing these tools, small business owners and their employees can reduce the burden of manual tasks and focus on high-impact work that truly moves the business forward.
With AI, the ceiling on growth is no longer set by headcount or budget, but by a business’s vision and willingness to innovate. For Australian small businesses, AI isn’t just a competitive edge – it’s the key to transforming a lean team into a strategic powerhouse, driving sustained growth and ensuring they remain the resilient, beating heart of our communities.
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