Australian consumers wary as AI delivers business benefits

Research has highlighted that while artificial intelligence is generating measurable returns for Australian businesses, local consumers remain sceptical and are experiencing fatigue with the technology.

The latest Australian findings from Twilio's annual State of Customer Engagement Report show a complex landscape, with trust, autonomy, and transparency emerging as key themes for consumer acceptance of AI. The results are based on survey responses from over 7,600 consumers and 600 business leaders across 18 countries, including Australia.

Business benefits and consumer views

The report indicates that most Australian companies continue to invest in AI for customer engagement, with 97% reporting that AI is improving customer-facing operations such as support, marketing and personalisation. Among those businesses, 34% have seen customers spend more as a result of AI-powered personalisation, and an equal percentage have reported increased customer retention and repeat spending.

Despite these outcomes, the research shows there is growing consumer weariness around AI. Two-thirds (66%) of Australian consumers surveyed say they are exhausted by the technology. However, many also acknowledge the benefits, particularly when AI helps them find products (46%), resolve customer service issues more quickly (43%), and provides round-the-clock support (35%).

Need for trust and transparency

The findings suggest a gap between business perspectives and consumer expectations. Only 19% of Australian consumers recall being notified by a brand when their data was used within an AI system. At the same time, 62% want clear disclosure whenever they are interacting with AI. This highlights a call for brands to improve transparency and give consumers more control over their AI-related experiences.

Autonomy was identified as another priority, with 85% of consumers preferring to choose how brands communicate with them rather than AI setting preferences automatically. Moreover, 61% said it was important for interactions with AI to feel as human as possible, and 46% wanted the option to escalate their queries to a human agent.

Business implementation in practice

Driva, an Australian online car loan marketplace, has taken a measured approach to AI and automation in its customer experience strategy. The company's Co-Founder, Will Brown, explained the rationale and results:

"Our goal is to make car buying and life financing easier, and with AI and automation, we're truly delivering on that promise. By partnering with Twilio, we built an intelligent AI chatbot in under two weeks, enabling us to offer faster, more personalised services for our customers. It was important to us that, while AI could automate some interactions, we gave consumers the autonomy to talk with a human agent at any stage of the loan application process. This has paid in dividends - with Twilio's Flex solution we've scaled support to meet growing demand, boosted agent efficiency, and increased loan applicant conversion rates. The ability to automate call summaries also helped to support our staff coaching and compliance measures, making our operations even stronger,"

said Will Brown.

Industry perspective

Twilio's Director of Solution Engineering for Asia Pacific and Japan, Christopher Connolly, spoke about the need to focus on consumer benefits as the next step for brands implementing AI:

"Australian businesses are already seeing clear operational returns from their investment with AI for customer engagement. The next step is ensuring consumers feel the benefits too. Trust, transparency, and giving consumers control over how they engage are pivotal for brands looking to bring customers along on the AI journey. By using AI to deliver real-time personalisation and create tailored experiences that feel human – and are human, where they need to be – brands can cultivate deeper, more meaningful relationships with their customers."

Summary of report findings

The 2025 State of Customer Engagement Report concludes that organisations who emphasise real-time, transparent relationships will be well positioned to drive business growth and strengthen customer loyalty within a competitive market increasingly influenced by AI technology.