Australian consumers distrust AI in customer services
Qualtrics has released its 2025 Consumer Experience Trends report, highlighting key insights into Australian consumer attitudes towards artificial intelligence (AI) and customer experience.
According to the report, a significant 86% of Australian consumers express low trust in local organisations to use AI responsibly, marking a growing scepticism. This has led to a 9% decline in comfort levels with AI-based services over the past year, ranging from simple order checks to seeking medical advice. "Consumers in Australia are some of the biggest sceptics anywhere in the world when it comes to AI," stated Isabelle Zdatny, Customer Loyalty Specialist at Qualtrics. "Companies are more excited than consumers about using AI, and there's a lot of work to do to persuade people of the benefits. The best uses of AI right now in customer experience are when it's focused on solving issues or problems people care about."
Further complicating customer experiences, the report highlighted ongoing issues such as communication problems and service delivery challenges. While the volume of reported poor experiences has decreased, these persistent issues continue to affect consumer spending, with 54% of consumers reducing spending after a bad experience. Zdatny noted, "There is no excuse for getting the fundamentals of good customer experience wrong, but too often consumers are saying this is what's happening with poor communication and service issues. Nice-to-have industries continue to raise the bar on what good customer experience looks like, and with more than half of bad experiences ending in a spending cut, businesses and governments can no longer afford to fall behind."
The 'silent treatment' is emerging as a trend with a growing number of consumers refraining from vocalising their experiences. Consumers are 6 percentage points less likely to report bad experiences since 2021, predominantly sharing feedback through personal networks rather than directly with companies or via social media. Zdatny commented, "Customers are giving brands the silent treatment, and if organisations don't find a way to fix this issue, we could see more disgruntled consumers in Australia. Customers are expecting a better experience, but simultaneously they're not willing to share the insights brands need to deliver one. Overcoming this gap requires brands to rethink how they engage with customers and go beyond the traditional feedback survey."
On the topic of privacy versus personalisation, Australian consumers appear divided. While 60% prefer tailored experiences, 52% express concern over the privacy implications of sharing personal data. Only 25% trust companies to handle their data responsibly. Zdatny emphasized that "giving customers what they want is not a conversation about privacy or personalisation. It's about trust. In 2025, one of the most impactful and sustainable strategic focuses brands can adopt is to identify what they need to do to win trust back without overstepping the mark and turning customers away instead."
In terms of establishing trust, the report stresses that reliability in meeting consumer expectations is critical for maintaining loyalty. Australian consumers place higher value on trustworthy information from businesses than on speed or convenience of service. "It's dangerous to assume existing customers will stay loyal without intentional effort to keep them. To deliver a great customer experience, following through on the most basic commitments and delivering what's been promised is what's most important to consumers," added Zdatny.
