Consumer group CHOICE has released the results of a nationally representative survey on consumer experiences of AI, finding many people are sceptical of the technology, with some already seeing negative impacts, particularly in regards to customer service and scams. 

Less than 1 in 10 (9%) Australians think that AI is making products and services better quality. Half of Australians (51%) say that the use of AI chat bots for customer service is making their experience much worse and 70% of Australians disagree that businesses should be trusted to use AI how they think is best.

CHOICE Senior Campaigns and Policy Advisor, Jordan Cornelius says AI could result in one of the biggest shifts in power away from consumers we’ve seen.

“AI has the potential to erode our ability to assess value or shop around – through highly individualised surveillance pricing, dark patterns, and poor customer service experience,” he said. 

“One of the scariest parts of AI is its ability to supercharge scams. Half of Australians say AI is making the prevalence of scams they see much worse. In the hands of scammers, AI has been used to generate deepfake videos, synthetic voice clones, and scam advertisements to lure people in so scammers can steal their money.

“We’re already seeing the disastrous impacts AI can have on consumers, and without safeguards, this is likely to worsen.”

CHOICE’s launches AI Action Plan

CHOICE is urging the government to introduce laws that address the emerging risks AI poses to consumers – a sentiment echoed by 83% of Australians in its survey.

CHOICE’s AI Action Plan is calling for: 

• A ban on businesses using personal information to set individualised prices for consumers
• Strengthened proposed privacy reforms so that they apply regardless of the type or size of the business
• Bringing AI chat bots, email services, organic search, online marketplaces and dating apps into the new Scams Prevention Framework
• More resources for the ACCC to tackle and target the misuse of AI against consumers
• A pathway for Australians to access fair and timely help and redress if they experience issues with digital services

“Without new, stronger laws, Australia’s consumer protection framework will simply not be able to keep pace with the significant harms associated with AI,” said Mr Cornelius.