AI on the rise in Australia
Artificial Intelligence is already transforming industries across Australia, driving efficiency, innovation, and potentially driving economic growth. The promise of AI is great, but it is also a disruptive technology, impacting various industries in different ways. Consumers are more aware of AI than ever, thanks to the hype surrounding it, and the perceived threat that it may have for job security in the years ahead. Within this dynamic environment, it is fascinating to dive in and see how AI is being applied by brands.
Generative AI is prompting significant change across Australia, influencing industries and driving innovation. Tools like ChatGPT and Gemini are being widely adopted, impacting how Australians work and study, as companies explore the potential of this emerging technology. According to Deloitte, workplace usage rose from 32% to 38% within a 12-month period, while belief in its societal benefits increased by 24%. [1]
However, much of the AI technology in use is imported from global providers like OpenAI. As businesses increasingly seek tailored, industry-specific solutions, there’s a growing need for locally developed AI tools.
AI is changing the way businesses operate by allowing for simplified processes, eliminating repetitive tasks and minimising errors, driving unprecedented efficiency and productivity, McKinsey stated that with the right conditions, generative AI could boost the Australian labour productivity by up to 1.1% annually through to 2030. [2] This potential hinges on adopting AI efficiently and investing freed-up hours into the economy for maximum impact.
Another reason for the rapid adoption its AI is it’s ability to improve customer experiences, or at the very least, to make the interaction process more efficient for brands. Smart AI powered chatbots that use natural language responses, powered by a database of accurate company information, can give much more constructive feedback to customer questions, compared to a basic chatbot that only has a few FAQs to draw from. [3]
PwC Australia recently partnered with Adore Beauty to analyse the impact of AI on improving customer experiences. Adore Beauty examined data such as product images and customer feedback to enhance their offerings and better meet customer needs. As a result, they were able to provide more personalised services and recommendations, streamline interactions for more efficient customer service, and offer predictive insights to anticipate customer needs and trends more effectively. [3]
Opinions on AI differ from generation to generation, shaping the varying ways technology impacts their lives and experiences. A study by Ipsos found that younger generations, specifically Gen Z and Millennials, are the most optimistic about the implementation of AI, yet they also express the highest levels of concern. This concern arises from their uncertainty regarding the impact of AI on future careers. Interestingly, both optimism and concern gradually decrease as the generations get older. This trend is attributed to the fact that AI affects younger generations more significantly than it does older generations. [4]
The use of AI technologies offers both risks and opportunities that need careful management. To make the most of AI’s benefits while following ethical guidelines, we must understand how these risks and opportunities connect. Some of these risks include:
- Privacy Concerns/Security Risks
- Bias and Discrimination
- Loss of Jobs
- Dependence and Overreliance
Mitigating these risks will require proactive strategies, responsible development and ongoing collaboration across industries and governments. [5]
Marketers and brands must pay attention to the rise of AI as it’s transforming the industry. With AI, it is possible to gain deeper insights, personalise experiences at scale, and make data-driven decisions more quickly. Embracing AI will boost campaign efficiency, keep you ahead of trends and strengthen connections with your audience. By integrating AI into your strategy, you can create more meaningful engagement and stay competitive with today’s changing consumer demands.
Make sure to check out the Top Consumer Trends in Australia for 2025.
[1] Generative AI: Australia Update, Deloitte, May 2024
https://www.deloitte.com/au/en/services/consulting/analysis/generation-ai-ready-or-not.html
[2] Generative AI and the Future of Work in Australia, McKinsey, February 2024
[3] The Future of Retail with GenAI: Adore Beauty Works with PwC and AWS, PwC, September 2024
[4] AI at work: An Australian Perspective, Ipsos, November 2024
https://www.ipsos.com/en-au/ai-work-australian-perspective
[5] AI Governance: Leadership Insights and the Voluntary AI Safety Standard in Practice, Governance Institute of Australia, 2024
https://www.governanceinstitute.com.au/app/uploads/2024/09/GovInst-AI-Whitepaper.pdf
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