Millennials trust AI more than Gen Z, survey finds

Oysterly Media has published research showing that Millennials in Australia use and trust AI more than Gen Z. The survey of 1,200 people found Gen Z was the most sceptical generation, despite heavy use of AI tools.

The findings challenge the assumption that younger digital users are the most open to AI in search and product discovery. The study found that 64% of Millennials already use AI tools to search, compare or assess options, compared with 56.8% of Gen Z and 41.9% of Gen X.

Millennials were also the most willing to rely on AI outputs when sources were visible. Some 68.3% said they trusted AI when sources were clearly shown, compared with 58.1% overall and 45.3% of Gen X.

Gen Z presented a more divided picture. While 19.2% said AI assistants were their most trusted source when researching products and services, 27.8% said they were their least trusted source. That was the widest gap between strongest and weakest trust levels of any demographic in the survey.

Melissa Laurie highlighted that contrast in the findings.

"Most people assume Gen Z are leading the AI charge. The data tells a more nuanced story. Gen Z have never known a world without algorithmic feeds, targeted ads and optimised content competing for their attention. That experience builds a different kind of media literacy. They've learned to interrogate what they're being shown and why. It makes sense they would bring that same scrutiny to AI," said Melissa Laurie, Chief Executive Officer of Oysterly Media.

Trust and use

The survey suggests Australians see AI as a tool for speed rather than authority. Nearly three quarters of respondents, or 74.6%, agreed that AI summaries can save time but may miss important details.

That caution is reflected in how people begin commercial research. Just 6.5% said they would start a product search with an AI assistant, while only 3.3% would begin with an AI summary.

Concerns about commercial influence were also prominent. The research found that 77.8% said it is getting harder to tell what is genuinely independent and what is sponsored, while 70.5% were worried advertising or sponsorship would affect AI recommendations. Another 61.2% said they would trust AI less if adverts appeared inside answers.

Laurie said that tension sits at the centre of AI adoption.

"Growing up online didn't make Gen Z more trusting. It made them more skeptical of everyone trying to reach them. They've developed finely tuned filters for what feels authentic and what doesn't," Laurie said. "For them, AI doesn't pass that test yet. They are using it, but they're also watching it closely. Brands that assume Gen Z will simply follow the AI trends are misreading the room."

Commercial pressure

The data points to a wider challenge for technology platforms and marketers as AI tools become more visible in search, recommendation and shopping journeys. Heavy use does not appear to translate into high confidence, particularly among younger consumers who have grown up with recommendation systems, sponsored content and targeted advertising.

Across the broader population, transparency remains central to trust. More than eight in 10 respondents, or 81.5%, said AI-generated images and videos should be clearly labelled. That included 76.9% of Gen Z, 82.3% of Millennials and 84.6% of Gen X.

The findings align with other measures of public caution in Australia. A 2025 global study by KPMG and the University of Melbourne found that only 36% of Australians were willing to trust AI applications, placing the country among the lowest-ranked internationally on AI trust despite regular use by around half the population.

Media professionals have also expressed concern. The Medianet 2026 Australian Media Landscape Report found that 93% of journalists were concerned about AI's effect on journalistic integrity, up from 88% a year earlier.

For businesses using AI in marketing and customer engagement, the survey suggests disclosure may matter as much as convenience. Visible sourcing, labelling and a clear separation between independent information and paid influence appear to be key conditions for public acceptance.

Laurie drew that line sharply in discussing the results.

"AI has a trust problem it hasn't earned its way out of yet. Australians will use it for speed, but the moment it feels like a paid feed, they're gone. That's not a technical problem. That's a credibility problem," Laurie said.

The study was conducted in the first quarter of 2026 by Oysterly Media and Oaktree Insights and Consulting. It surveyed 1,200 Australians across all states and territories, with the sample weighted by age, gender and location to reflect the national population.

Laurie said the message from respondents was consistent across age groups. "Transparency isn't a differentiator anymore. It's a baseline," Laurie said. "Australians across every generation are saying they expect AI content to be labelled, sources to be shown and commercial influence to be disclosed. The organisations that build those safeguards in now will be best placed to earn durable trust."