Businesses may be increasingly adopting artificial intelligence (AI) to cut costs, improve productivity and elevate the customer experience, but Australian consumers are not so keen to engage, according to new research by cloud communications group Sinch.
The State of Customer Communications report released by Sinch today has found that Australians are among the most cautious in the Asia-Pacific region when it comes to engaging with AI in customer-facing roles, preferring personal service over the efficiencies of AI.
The research is based on responses from more than 600 consumers across Australia, India and Singapore, providing a comprehensive assessment of the current state of consumer communications and where it is heading.
The research comes at a time when major organisations such as Coles Group (ASX: COL) are looking to create “seamless customer experiences” through AI and Commonwealth Bank of Australia (ASX: CBA) has struck a strategic partnership with OpenAI to help drive greater customer personalisation.
Related story: Global study shows Australians are the most frustrated by AI customer service bots
The key findings of the Sinch research highlight that trust, accuracy and genuine human connection remain “non-negotiable” for Australian consumers, especially in retail, healthcare and finance.
This compares with consumers in other regional markets, such as Singapore and India, where they are more open to AI-driven communications.
Two-thirds, or 66 per cent, of respondents to the survey in Australia say they don’t trust the accuracy of AI-powered answers, particularly in sensitive sectors such as healthcare and finance.
More than four in 10, or 41 per cent, are worried about privacy, while nearly half (45 per cent) say AI feels “too impersonal” for meaningful customer support.
As a result, fewer than one in three are open to AI-powered customer support, and in healthcare just 16 per cent would consider using an AI chatbot provided by their doctor or hospital.
“Australians are sending a strong signal to brands: trust and accuracy are non-negotiable,” says Wendy Johnstone, executive vice president of APAC at Sinch.
“No matter how advanced the technology, if customers doubt the reliability of AI, they’ll disengage.
“Brands must be transparent about how AI is used and always provide easy access to human support. That’s how you build confidence and loyalty in a digital-first world.”
The research has found that human support remains the “gold standard” for Australian customers, especially for complex or sensitive issues.
For urgent matters such as fraud, more than half (51 per cent) prefer to speak to a person by phone, and when it comes to communications from financial institutions, 34 per cent opt for email while only 1 per cent would use messaging apps.
AI-powered chatbots are the least preferred channel for both pre- and post-purchase support, with only 4 per cent choosing them in a retail setting.
“The human touch simply can’t be automated when the stakes are high,” says Johnstone.
“But there’s an opportunity to blend digital efficiency with genuine empathy. The brands that succeed will be those that use AI for routine tasks, like appointment scheduling or order tracking, while ensuring customers always have a direct line to a real person for anything more complex.”
The Sinch research reveals that Australian companies have some way to go in convincing consumers of the benefits of AI.
In comparison with the two other regions surveyed, only 36 per cent of Australians are open to receiving real-time order updates from an AI, compared to 56 per cent of Singaporeans and 79 per cent of Indians.
Australians are more sceptical of AI-driven personalisation as well, with 28 per cent saying they are happy to receive recommendations that are relevant, non-intrusive and delivered via trusted channels. This is well behind consumers in Singapore (47 per cent) and India (79 per cent).
Sinch says this demonstrates that brands need to educate and build trust with Aussies first.
“While Australian consumers are rapidly adopting AI in their own lives, they are cautious about businesses using it to engage with them versus their regional counterparts,” says Johnstone.
“This has consequences for how local organisations should adopt and roll-out new technologies.”
While failing to adopt AI is “not an option”, Johnstone sees the solution for organisations to first take Australian consumers on a journey and win their trust.
“This is a critical journey for Australian organisations because how and where you communicate with customers shapes whether they believe you’re acting in their best interests,” she says.
“The lesson for Australian brands is it’s imperative to build trust first and only then can you turn attention to innovation.”
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