AI could drive over half of consumer spending by 2030 in Australia

AI tools and applications are set to have a big impact on consumer spending in Australia in the years ahead according to research from Cognizant and Oxford Economics, which shows AI could influence 55more than half of all consumer transactions in Australia by 2030, totaling $669 billion.

The study focuses on consumers aged 18 to 44, who are seen as early adopters of AI. The researchers analyzed past technology adoption trends and surveyed 8,400 people about their comfort level with AI in shopping.

Of all the countries surveyed, Australia has the highest AI adoption rate. “Australia’s leadership in AI adoption reflects the country’s openness to innovation and its growing demand for technology that enhances everyday experiences,” said Rob Marchiori, country manager of Cognizant in Australia.

“With 55% of consumer transactions expected to be influenced by AI by 2030, businesses here have a unique opportunity to rethink how they engage with customers. Success will require not just leveraging AI for convenience but also addressing consumer trust and control at every stage of the purchasing journey.”

AI Accelerators

The study identifies a segment of consumers, termed AI Accelerators, who are particularly enthusiastic about integrating AI into their purchasing journeys. These individuals, while currently representing only around a quarter of consumers, are expected to wield increasing influence as their income and spending power grow.

By 2030, AI Accelerators are projected to contribute substantial consumer spending, including $4.4 trillion in the United States, $690 billion in the United Kingdom, $540 billion in Germany, and $670 billion in Australia.

Levels of trust vary

While AI adoption is expected to rise, the report also acknowledges that consumer comfort with AI varies across different stages of the purchasing process. Consumers are most comfortable using AI for product discovery, but they express hesitation when it comes to the actual purchase transaction.

However, they are also receptive to AI-driven engagement after purchases are made. That can include, for example, automated maintenance or reordering. The study projects that this varying degree of trust in AI will eventually shift into full integration of AI into the customer journey by 2030.

Another area where AI has made a huge splash is customer service. Chatbots and other automated customer service systems have dramatically streamlined the process in a wide range of industries. With many such systems now automated, customer service workers can ditch menial and repetitive tasks to instead focus on more important issues.

A new paradigm

The study urges businesses to understand and prepare for the rise of the ‘agentic internet’, an ecosystem of AI-enabled tools and agents that work autonomously on behalf of consumers. Companies will need to shift their business and operational models accordingly and learn to interact with both human customers and their digital counterparts.

And while the promises of AI are clear for business leaders in so many different industries, there are also still plenty of detractors that point to lingering concerns about privacy, security, and regulations. One recent study found a large number of managers were surprisingly candid about the risks and issues they encountered with AI.