Nearly half of Australians use AI assistants for online shopping

New research from PayPal Australia reveals that almost half of Australians have already engaged artificial intelligence (AI) assistants for online shopping, highlighting a rapid shift in consumer behaviour towards AI-driven commerce.

The study shows 48% of Australians have used AI assistants for product searches while shopping online, a figure that climbs to 66% for those aged under 45. This uptick in usage among younger demographics points to a generational shift in how digital shopping journeys are navigated.

AI adoption and mainstream expectations

Looking ahead, 78% of Australians expect that AI shopping tools will become a mainstream part of the online shopping experience, with over half (53%) indicating they plan to use such tools within the coming year. The research also highlights that trust plays a major role in adoption, as nearly one-third of respondents (30%) say they would engage with AI shopping solutions only if they come from brands or platforms they already trust.

Confidence in AI-generated recommendations is also relatively robust given the emerging nature of the technology, with 61% of Australians saying they would trust AI to make product recommendations for them. The data further breaks down that 43% of consumers would trust AI for recommendations in certain product categories, preferring to make the final decision themselves, while 18% are ready to place full confidence in AI-led product suggestions.

Agentic AI and the changing retail landscape

Simon Banks, Managing Director, PayPal Australia, explains, "Agentic AI is not just another enhancement to the way humans use technology in retail. It's got the potential to completely disrupt the existing model of eCommerce.

"Natural language will become common place in helping shoppers find products. Imagine telling AI exactly what you want, in your own words and getting tailored options instantly. No scrolling, or site hopping – just results. From chatbots to social feeds, consumers will be able to make seamless one-click purchases wherever they are.

"At PayPal, we're already exploring how to give consumers the power to use their PayPal credentials and smart wallet features within AI-powered experiences to seamlessly pay with the right payment method, at the right merchant, at the right time."

The concept of 'agentic commerce' is expected to significantly transform the way both consumers and sellers interact online, with AI agents set to autonomously research, negotiate, and execute purchases. The move towards agentic AI is being facilitated by initiatives such as PayPal's partnership with Perplexity, which allows consumers to shop, book travel, or purchase tickets and check out using an integrated PayPal payment experience.

In April, PayPal also launched an agent toolkit and MCP servers, making it possible for developers to create payment, shipment tracking, and invoice management experiences leveraging PayPal within AI-powered agents.

Focus on value and simplification

Australians are expressing considerable interest in using AI assistants to simplify their shopping experiences. Thirty-eight percent are particularly interested in AI-powered price tracking and deal alerts, signalling a desire for practical, value-driven benefits from such technologies.

This transition brings both opportunities and challenges for sellers. Mr Banks notes, "Sellers will need to fundamentally shift how they approach marketing and search functions in response to the growth of agentic shopping tools. They'll need to put greater effort into building agentic AI experiences and making sure their products appear at the forefront of natural language search."

Privacy and security top of mind

While enthusiasm for AI-assisted commerce is strong, reservations about privacy and security remain significant. The survey finds that 92% of Australians harbour at least one concern regarding the use of AI for online shopping, with 64% specifically apprehensive about the privacy and security of their personal details.

"Trust is crucial to enabling agentic commerce. These solutions must be safe and secure, particularly as integration with smart wallets and payment options becomes more readily available. This is where PayPal has a unique advantage in providing the trust and security sellers and consumers have come to expect," concluded Simon Banks.

Despite prevailing security concerns, 57% of Australians would be willing to share their shopping habits and preferences if it means more personalised AI recommendations.

The research was conducted online with a sample size of 1,044 Australians aged 18-75, weighted to ensure national representation by age, gender and location, and fielded from mid-May 2025.