Australian businesses are increasingly turning to artificial intelligence (AI) to personalise customer experiences and improve operational efficiency, but new research from Twilio suggests consumer trust and buy-in are still lagging.
Twilio’s 2025 State of Customer Engagement Report highlights a growing disconnect between business enthusiasm and consumer scepticism around AI.
The global study surveyed 7,640 consumers and 637 business leaders across 18 countries, including Australia, from January 3 to February 17, 2025.
According to the report, 97 per cent of Australian businesses surveyed report that AI is improving customer-facing operations such as marketing, support, and personalisation.
Companies are already seeing tangible gains, with 34 per cent reporting higher customer spending and 34 per cent noting improved retention and repeat purchases.
Despite these advantages, many consumers are expressing fatigue. Sixty-six per cent of Australian respondents say they feel exhausted by AI, though many also recognise its value when it improves their experience.
Consumers are most open to AI when it helps them find products more easily, resolve service issues faster or provide round-the-clock support.
The report also highlights a widespread desire for greater transparency. Only 19 per cent of local consumers say they have been informed when their data is used by AI systems.
Sixty-two per cent want to know when they are interacting with AI, and 85 per cent prefer to choose how brands communicate with them, rather than have preferences assumed by automated systems.
Sixty-one percent of Australian consumers say it is important for AI interactions to feel as human as possible, while 46 per cent want the ability to escalate to a human agent when needed.
“Trust, transparency, and giving consumers control over how they engage are pivotal for brands looking to bring customers along on the AI journey,” said Christopher Connolly, Director of Solution Engineering APJ at Twilio.
“By using AI to deliver real-time personalisation and create tailored experiences that feel human – and are human, where they need to be – brands can cultivate deeper, more meaningful relationships with their customers.”