home Artificial Intelligence - AI, Customer Experience, Customer Insights and Data Consumer comfort levels with AI in Australia fall 9%

Consumer comfort levels with AI in Australia fall 9%

Qualtrics’ fourth annual Consumer Experience Trends report for 2025 reveals key insights for businesses seeking to improve CX, boost market share, and drive revenue. Based on 23,730 global responses, including 1,201 from Australia, the report highlights growing consumer skepticism towards AI, a decline in feedback sharing (both positive and negative), the complex interplay of privacy and personalisation, and a clear call for businesses to focus on the fundamentals.

Key findings include:

  • Persistent pain points: Despite fewer negative experiences overall, core issues like poor communication and service delivery remain, potentially impacting consumer spending.
  • Declining feedback: Consumers are increasingly silent about both good and bad experiences, making it harder for brands to gather crucial insights.
  • AI skepticism: Trust in organizations’ responsible use of AI has dropped significantly, with only 14% of consumers expressing confidence.
  • Privacy vs. personalisation: Consumers desire personalised experiences but are wary of companies using their data without permission.
  • Back to basics: Trust, strongly linked to loyalty, hinges on businesses fulfilling their promises and delivering on core service expectations.

In Australia, the top CX complaints are communication problems (46%), service delivery issues (44%), and pricing concerns (39%). Over half (54%) of consumers reduce spending after a negative experience, emphasising the financial impact of poor CX. While “must-have” industries like government, telco, and utilities receive the most complaints, “nice-to-have” sectors such as streaming services and retailers are setting a higher bar for CX.

Qualtrics’ Customer Loyalty Specialist, Isabelle Zdatny, emphasises the need for businesses and governments to address these fundamental CX issues, especially poor communication and service. She notes that with over half of negative experiences leading to reduced spending, falling behind is no longer an option.

The report also highlights a concerning trend of consumers becoming less likely to share feedback, both positive and negative. This “silent treatment” poses a challenge for businesses seeking to understand and improve the customer journey. Zdatny suggests that brands need to go beyond traditional feedback surveys and explore new ways to engage with customers to gather the insights needed for better CX.

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