TLDR: Australians are increasingly relying on artificial intelligence and peer networks for information as their trust in traditional digital services and organizations continues to decline. Despite a significant uptake in AI usage, widespread concerns persist regarding data security, AI-driven fraud, and a lack of confidence in distinguishing legitimate digital interactions from scams.
A recent wave of reports indicates a significant erosion of trust among Australian consumers in digital services and the organizations managing their personal data. This decline is occurring concurrently with a rapid increase in the adoption of artificial intelligence (AI) technologies, creating a complex landscape of both opportunity and heightened anxiety.
According to a Ping Identity global Consumer Survey, only 11% of Australian adults express ‘full trust’ in organizations responsible for their identity data, placing Australia among the lowest-ranked countries globally. This sentiment is further underscored by the fact that 82% of those surveyed are more concerned about their personal data security now than they were five years ago.
Despite these concerns, AI use is on the rise. The Ping Identity report reveals that 61% of Australians now use AI either personally or at work, a figure that significantly outpaces the 41% reported globally in 2024. However, this increased engagement is shadowed by growing anxieties, with 42% of respondents citing AI-driven phishing as their most significant contemporary scam concern. Only 20% feel very confident in their ability to discern legitimate digital interactions from scams, highlighting a substantial gap between AI adoption and consumer confidence in digital safety.
Further insights from a global study by KPMG and the University of Melbourne, led by Professor Nicole Gillespie, Chair of Trust at Melbourne Business School, reinforce this ‘trust gap’. The report, which surveyed over 48,000 people across 47 countries, found that while half of Australians (50%) regularly use AI, only 36% are willing to trust it. A striking 78% are concerned about negative outcomes from AI use, and 37% have personally experienced or observed issues such as inaccuracy, misinformation, manipulation, deskilling, and loss of privacy or intellectual property.
Professor Gillespie emphasizes that ‘the public’s trust of AI technologies and their safe and secure use is central to acceptance and adoption.’ However, Australia ranks among the lowest globally in terms of AI trust and optimism, with only 30% believing AI’s benefits outweigh its risks – the lowest share of any country surveyed.
The workplace also presents a challenging scenario. Two-thirds (65%) of Australians report their employer using AI, with employees noting increased efficiency. Yet, almost half (48%) admit to using AI in ways that contravene company policies, including uploading sensitive company information to public AI tools like ChatGPT. A significant number (57%) rely on AI output without evaluating its accuracy, and 59% have made mistakes in their work due to AI. This is compounded by low AI literacy, with only 24% of Australians having undertaken AI-related training or education, compared to 39% globally.
Experts are calling for stronger governance and transparency. Ash Diffey, Vice President ANZ at Ping Identity, warns that ‘Australian consumers’ trust in brands is eroding as the global economy approaches a ‘trust nothing’ era accelerated by AI-enabled fraud.’ He stresses that ‘AI and the rise of agents is heightening the problem, becoming more autonomous, persuasive and harder to detect, which raises the stakes for both businesses and consumers where robust identity verification and protection is increasingly king.’ John Munnelly, KPMG Australia Chief Digital Officer, highlights that the ‘combination of rapid adoption, low AI literacy and weak governance is creating a complex risk environment.’
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There is strong public support for AI regulation, with 77% of Australians agreeing it is necessary. The Deloitte TMT Predictions 2025 report also points to a growing ‘trust gap’ in generative AI, particularly among women, with only 50% of Australian women trusting or using GenAI in the workplace compared to 70% of men. The report also notes a cautious ‘wait-and-see’ approach by Australian businesses towards autonomous AI agents, despite their potential impact across various sectors. Businesses are urged to move beyond ‘pilot and play’ strategies and invest in education, transparency, and inclusive AI governance to build trust and ensure responsible AI adoption.
