Asier Carazo and Rory Heffernan. Credit: Atomic 212°
Two-thirds of Australians will use an AI-only service, but only if it costs less and performs better than what they have now, according to research from media agency Atomic 212°.
The "Cost of Convenience" report, based on a survey of 1,005 Australians across retail, banking and insurance, automotive, utilities and travel categories, found 63% would accept an AI-only service at a lower price.
Among 18-to-34-year-olds, that figure rises to 80%; among those 55 and over, it falls to 51%.
Savings of 10% to 20% were the threshold at which most respondents would consider switching to an AI-only service.
The findings come as AI adoption grows. Research from Google and the Australian Research Council puts AI usage among adult Australians at 60%, up from 5% in 2022.
The survey found 47% of people cited 24/7 availability as a key reason to switch to AI, 40% said lower prices and 32% said faster service.
On trust, 84% expect to know when they are dealing with an AI, 40% want access to a human if things go wrong, and 32% want transparency around how decisions are made.
Rory Heffernan, CEO of Atomic 212°, said the readiness question had been settled.
"The debate about whether Australians are ready for AI-powered brand experiences is over. But what people want in return for switching to AI services is very clear: lower prices, faster service and the reassurance that a human is available when things go wrong.” he said.
“The brands that meet those needs will do well.”
Asier Carazo, chief strategy officer at Atomic 212°, said failed AI deployments shared a common flaw.
"The AI applications that have failed were cost-cutting exercises," Carazo said.
"They replaced humans without fixing anything that was actually frustrating consumers. Meaningful AI innovation has to meet consumer needs and deliver efficiency. Focusing on efficiency alone isn't going to work."
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