Australian consumers lack trust in AI for customer service

Qualtrics 2025 Consumer Experience Trends Report: Australian Consumer Attitudes Towards AI and Customer Experience

Qualtrics has recently released its 2025 Consumer Experience Trends report, shedding light on the current landscape of consumer attitudes towards artificial intelligence (AI) and customer experience in Australia. The findings reveal a concerning trend of growing scepticism among Australian consumers, with a significant 86% expressing low trust in local organisations to use AI responsibly. This lack of trust has resulted in a 9% decline in comfort levels with AI-based services over the past year, indicating a need for companies to work harder to persuade consumers of the benefits of AI.

Isabelle Zdatny, Customer Loyalty Specialist at Qualtrics, highlighted the disparity between companies’ excitement about using AI and consumers’ scepticism, emphasizing the importance of focusing AI on solving issues that consumers care about. The report also identified ongoing challenges in customer experiences, such as communication problems and service delivery issues, which continue to impact consumer spending. With 54% of consumers reducing spending after a bad experience, businesses and governments must prioritize improving customer experiences to avoid falling behind.

A notable trend identified in the report is the ‘silent treatment’ from consumers, with a growing number choosing not to vocalize their experiences directly to companies. Instead, consumers are more likely to share feedback through personal networks, posing a challenge for organizations to gather valuable insights for improvement. Zdatny urged brands to rethink their engagement strategies and move beyond traditional feedback surveys to bridge the gap with consumers.

Privacy versus personalization emerged as another key issue, with Australian consumers divided on their preferences. While 60% prefer tailored experiences, 52% express concerns about privacy implications and only 25% trust companies to handle their data responsibly. Zdatny emphasized the importance of building trust with customers by finding the right balance between personalization and privacy, without overstepping boundaries.

The report also underlined the significance of reliability in meeting consumer expectations for maintaining loyalty. Australian consumers value trustworthy information from businesses more than speed or convenience of service, highlighting the importance of delivering on promises to retain customer loyalty. Zdatny stressed the need for intentional efforts to keep existing customers loyal and deliver a great customer experience by fulfilling basic commitments.

In conclusion, the 2025 Consumer Experience Trends report provides valuable insights for businesses in Australia to address the challenges of consumer trust, communication, privacy, and reliability in customer experiences. By focusing on solving consumer problems with AI, improving communication and service delivery, bridging the gap with silent consumers, and building trust through responsible data handling and reliable service, companies can enhance customer loyalty and drive business success in the evolving consumer landscape.

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