AI use in Australian shopping soars, with one in three onboard

New research has found a significant increase in Australians using artificial intelligence (AI) to support their shopping, with one in three now relying on the technology for activities such as choosing outfits, planning meals, and discovering new brands.

The 2025 Adyen Retail Report shows that AI adoption in shopping has grown by 45% in the past year. Among the 41,000 consumers surveyed across 28 countries, including Australia, 10% of Australians had used AI for shopping purposes for the first time in the past 12 months. Additionally, 56% indicated openness to making purchases using AI technology in the future.

According to the report, 32% of Australians now use AI to facilitate their shopping. Shoppers have reported positive experiences; 57% said AI inspires them when buying items such as outfits and meals, and 6% claimed that AI provides them with their best product ideas. Furthermore, 56% expressed a desire to discover new or unique brands with the help of AI. These trends suggest a space for brands to consider partnerships and cross-selling opportunities to engage customers using the technology.

AI usage is increasing in all age groups. The Baby Boomer (60-78 years) and Generation X (44-59 years) demographics recorded the most marked year-on-year growth in AI adoption, each increasing by 65%. However, just 11% of Australians aged 60 and over reported currently using AI to support purchases, compared to 47% of Generation Z (16-27 years) and 45% of Millennials (28-43 years).

Overall, 65% of Australian consumers stated that they were aware of retailers potentially using AI to recommend products to them.

Hayley Fisher, Country Manager for Australia and New Zealand at Adyen, commented, "Australian consumers are embracing AI at an incredible pace as they explore how it can enhance and personalise their shopping experience. From helping people discover new brands to acting like a personal stylist for choosing outfits or planning meals, AI is fast becoming a trusted part of how Australians shop. What's particularly exciting is seeing how quickly older generations are catching on - it's no longer just the domain of digital natives."

When it comes to business responses, 26% of Australian retailers surveyed said they plan to invest in AI for sales and marketing over the next year, while 30% intend to use AI to support product innovation.

Fisher further stated, "AI is no longer viewed as a future bet— it's already changing how Australians shop and how retailers operate. We're seeing more retailers embrace AI to make shopping easier, faster and safer for their customers - whether that's through personalised recommendations, smoother checkouts or smarter fraud detection."

She added, "With the launch of Adyen Uplift in Australia earlier this year, we're helping businesses boost payment performance and deliver better customer experiences. It's clear AI is becoming a key growth driver for retailers in 2025."

The report also identifies a gap between consumer expectations and retail delivery. While 41% of consumers want to shop across multiple channels such as social media, apps, and online stores, only 46% of Australian retailers currently offer seamless online and in-store experiences. An additional 17% of businesses are planning to enable such cross-channel shopping in the coming year, and 18% said they aim to offer exclusive in-store experiences.

The survey found that, despite high digital engagement, physical stores remain the preferred shopping environment for 46% of Australians, compared to 17% who prefer shopping exclusively online. Shoppers cited the importance of seeing and feeling products (50%), trying on items before purchasing (49%), and the immediacy of walking out with a product (30%) as main reasons for these preferences. Meanwhile, 30% of consumers reported using social media to shop, reflecting a multichannel retail landscape.