TLDR: Recent studies reveal a significant reluctance among Australians to fully embrace Artificial Intelligence, primarily due to profound concerns over data security, the spread of misinformation, and the environmental impact of the technology. This widespread skepticism positions Australia as a global outlier in AI trust and literacy, despite the acknowledged potential benefits of AI.
Australia is demonstrating a marked hesitancy in its embrace of Artificial Intelligence, with recent reports highlighting a complex web of concerns ranging from cybersecurity and misinformation to the environmental toll of the burgeoning technology. This cautious approach places the nation significantly behind global averages in AI sentiment and adoption.
According to the EY Global AI Sentiment Index, as reported on May 8, 2025, by Katherine Boiciuc, EY Regional Chief Technology and Innovation Officer for Oceania, Australians are ‘tapping the brakes’ on AI implementation. The index reveals that a striking 74% of Australians rank security failures as their top concern regarding AI, considerably higher than the global figure of 63%. This anxiety has dragged Australia’s overall AI sentiment score down to a mere 54 out of 100, compared to a healthier global average of 70. Furthermore, 80% of Australians express worry about AI-generated fakery and misinformation, a concern more prevalent than in almost any other surveyed country. Consequently, only 37% of Australians believe the benefits of using AI outweigh its risks, in contrast to 51% globally.
Adding to this picture, the ‘Trust, attitudes and use of Artificial Intelligence: A global study 2025,’ conducted by Professor Nicole Gillespie and Dr. Steve Lockey in collaboration with KPMG, surveyed nearly 50,000 people across 47 countries between November 2024 and January 2025. Released on April 29, 2025, the study found that Australians are ‘less trusting and positive about AI than most countries,’ ranking among the lowest globally in acceptance, excitement, and optimism. While 50% of Australians use AI regularly, only 36% are willing to trust it, and a significant 78% are concerned about negative outcomes. Only 30% of Australians believe AI’s benefits outweigh its risks, the lowest ranking of any country. Professor Gillespie noted, ‘The research reveals a tension where people are experiencing benefits but also potentially negative impacts from AI. This is fuelling a public mandate for stronger regulation and governance and a growing need for reassurance that AI systems are being used in a safe, secure and responsible way.’ The study also highlighted a significant AI literacy gap, with over 60% of Australians reporting low knowledge of AI, and less than half feeling they possess the skills to use AI tools effectively.
Crucially, the environmental impact of AI is emerging as a significant concern. The EY 2025 AI Sentiment Report for New Zealand and Australia, published April 15, 2025, explicitly lists the ‘environmental cost of using AI’ as one of the nine major concerns among Australians and New Zealanders. This apprehension is further substantiated by a SWI swissinfo.ch report from July 8, 2025, which quotes Sasha Luccioni, a computer scientist and climate manager at Hugging Face. Luccioni points to a ‘real disconnect between the interfaces we use – such as ChatGPT or Siri – and the hardware reality of the servers that run them.’ She laments the difficulty in estimating actual energy consumption because ‘the AI giants refuse to disclose this data.’ Her June study found that in May 2025, 84% of requests to conversational AI models were processed by systems with completely opaque environmental footprints, with only 2% communicating their carbon impact. Luccioni also stressed that AI’s ecological footprint extends beyond electricity, requiring ‘large quantities of critical metals and water to build infrastructures and cool servers,’ leading to the emergence of new mines due to minimal recycling of electronic components.
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While a generational divide exists, with Gen Z and Millennials showing slightly more comfort with AI than older generations, the overarching sentiment across Australia is one of caution and skepticism. Experts suggest that addressing these deep-seated concerns through rigorous governance, transparent practices, and improved AI literacy will be critical for Australia to fully realize the economic and societal benefits of AI and avoid lagging further behind global competitors.
