AI Trust Gap Threatens Tech Adoption in Australia

As artificial intelligence becomes increasingly embedded in daily life, a growing lack of consumer trust could slow its progress - despite mounting investment and rapid implementation across industries.

AI technology has shifted from labs to consumer platforms almost overnight. Whether it’s powering shopping algorithms, education tools or financial services, AI is becoming integral to modern business. Investments in the Asia-Pacific region alone are projected to climb to $180 billion by 2030, a fivefold increase. But as excitement over its potential grows, so do concerns about fairness, transparency and governance.

While businesses continue to promote productivity and efficiency gains, only a small fraction report having the right controls in place to manage AI responsibly. According to Deloitte research, fewer than one in ten organisations currently meet governance standards required to properly oversee AI tools. Regulators like ASIC have raised similar concerns, pointing to widespread gaps in transparency and risk management. Without better safeguards, AI could do more harm than good - undermining consumer confidence and threatening long-term adoption.

Australia, in particular, seems cautious. Compared to other countries, Australians show lower trust in AI - a sentiment that may reflect a growing awareness of the technology’s risks. But pausing implementation isn’t the answer. Experts suggest that a balanced approach can help, light monitoring for simple use cases and tighter oversight for systems that influence health, rights or safety outcomes.

There’s evidence that trust can accelerate success. Companies with stronger AI governance reportedly experience nearly 30% higher staff adoption of AI tools and close to 5% more revenue growth. These organisations are also investing in employee training, hiring talent with ethical AI expertise and building internal culture focused on accountability. Only by earning trust internally, among teams and externally, among customers - can AI deliver on its full promise.

Australia’s caution isn’t a drawback. It could be an advantage if it leads to smarter, more responsible innovation. Without trust, AI will remain an overhyped promise. With it, the technology could transform industries and drive long-term value.

Source: The Australian, KPMG, Marketing Interactive