New research from media agency Atomic 212° has found that 63% of Australians would accept an AI-only service from a brand, provided it costs less and outperforms what they currently receive.
The Cost of Convenience report, conducted by Sonar – the agency’s in-house research division – surveyed 1,005 Australian adults in March 2026 across five consumer categories: retail, banking and insurance, automotive, utilities, and travel.
The findings challenge the prevailing assumption that Australian consumers are broadly resistant to AI-powered brand experiences.
Price is the tipping point
According to the report, savings of 10% to 20% represent the threshold at which most consumers would consider switching to an AI-only service.
Acceptance varied significantly by age: 80% of Australians aged 18 to 34 said they would take up AI-only services at a lower price, compared to 51% of those aged 55 and over.
Beyond price, 47% of respondents cited 24/7 availability as a key motivation to switch, while 40% cited lower prices and 32% cited faster service.
Transparency remains non-negotiable
Despite openness to AI services, consumers set clear expectations around accountability. 84% of respondents said they expect to know when they are dealing with an AI service, 40% want a clear path to a human when things go wrong, and 32% want transparency around how decisions are made.
Rory Heffernan, Chief Executive Officer of Atomic 212°, said the results signal a turning point for brands exploring AI-led customer experiences.
“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. The brands that meet those needs will do well,” said Heffernan.
Efficiency alone not enough
Asier Carazo, Chief Strategy Officer at Atomic 212°, said the research points to a clear pattern in why some AI deployments have failed.
“The AI applications that have failed were cost-cutting exercises. 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,” said Carazo.
Rapid adoption, but limited use
The research comes as AI adoption among Australians continues to climb. According to research from Google and the Australian Research Council, 60% of adult Australians now use AI, up from 5% in 2022.
The Publicis Sapient 2025 Digital Citizens Report found the most common use of AI among Australians is finding information and answering questions, cited by 42% of respondents. Image generation ranked second at 24%, followed by understanding news and current events (22%) and education and learning (21%).
However, the Australian Digital Inclusion Index 2025 found that 83% of generative AI outputs produced by Australians are text-based, suggesting most users have yet to move beyond basic applications.
Main image: Asier Carazo, Rory Heffernan