Click Smarter, Not Harder: How AI is Transforming Australian Shopping Habits

From bagging a bargain to tracking prices or matching the perfect lipstick to your skin tone, Aussies are turning to artificial intelligence (AI) as their new online shopping companion.  

New research from PayPal Australia reveals nearly half of Australians (48%) are already using AI for online product search – rising to 66% for those under 45. Additionally, 78% of Australians expect AI shopping tools will become a mainstream part of online shopping in the future.  

Many Australians see practical benefits and potential savings from using AI-powered shopping assistants. Price tracking and deal alerts are the most appealing features (38%), followed by summaries of reviews or user opinions (35%), order tracking (33%), and product comparisons (30%). 

Features like AI-generated product summaries (24%), visual search (29%), augmented reality try-ons (26%), and virtual walk-throughs for real estate or holidays (26%) are also gaining interest, particularly among younger Australians. 

“Australians are rapidly embracing AI as a savvy shopping companion – one that makes finding the right product faster, easier and more personal. From surfacing the best deals to tailoring recommendations to your style and needs, AI is turning online shopping into a smarter, more intuitive experience,” says Cathy Jamieson, Head of Consumer Research at PayPal Australia.  

Smart tools, real benefits… still evolving  

While AI offers many benefits, it’s still an emerging technology. Almost 6-in-10 Australians (59%) say they’ve received online shopping results from AI that were unexpected, or downright laughable. This is especially true for younger generations, with 81% of Gen Z and 69% of Millennials experiencing odd recommendations, compared to 50% of Gen X and 36% of Baby Boomers.  

However, despite this, 3-in-5 Australians (61%) say they’d trust AI to make product recommendations and over half of Australians (53%) say they plan to use AI tools for online shopping within the next 12 months. 

“The technology is still evolving and many of us are figuring out how to get the most out of it. The real power of AI lies in how you use it – clear, specific prompts can make a big difference. When used well, AI is a powerful way to save money, time and effort when you shop online. It’s about leaning to guide the AI, sticking to trusted platforms, and being prepared to refine your questions when the responses go a bit off track,” says Cathy. 

Another area where Australians are engaging with AI in online shopping is through customer service and sales chatbots. Interestingly, 66% of Australians feel that when AI tries too hard to “be human”, it can come off as inauthentic or insincere. 

Privacy and security matter 

AI is becoming so seamlessly integrated into the shopping experience that 65% of Australians believe they’ve probably interacted with AI without knowing it. 

That said, privacy and security are key concerns. 92% of Australians have at least one concern about using AI in online shopping, with the privacy and security of personal information being the top concern (64%).  

Despite this, 57% of Australians say they are willing to share online shopping habits and preferences to better personalise AI shopping recommendations and reap the benefits of AI shopping assistance. However, 30% say they’d only engage with AI shopping solutions from brands or platforms they trust.   

As AI becomes further embedded in the online shopping experience, Australians are embracing its potential while prioritising security and the importance of safeguarding personal privacy. 

ENDS