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Digital natives, analogue instincts: Why the most online generation trusts AI the least.

Oysterly Media

Key Facts:

Key Findings at a Glance

• 64% of Millennials use AI tools to search, compare or make sense of options, versus 56.8% of Gen Z and 41.9% of Gen X
• 68.3% of Millennials are more likely to trust AI outputs when sources are shown, versus 58.1% overall and 45.3% of Gen X
• 19.2% of Gen Z trust AI assistants most when researching, but 27.8% trust them least, the widest polarisation gap across all respondents
• 27% of Gen Z trust search engine AI summaries least of all sources
• 74.6% agree AI summaries save time but can miss important details
• Only 6.5% would start a product search using an AI assistant
• 70.5% are concerned ads or sponsorship will influence AI recommendations
• 61.2% would trust AI less if ads appeared inside answers
• 81.5% believe AI-generated images and videos should be clearly labelled, including 76.9% of Gen Z, 82.3% of Millennials and 84.6% of Gen X

 

 

Digital natives, analogue instincts:  Why the most online generation trusts AI the least.

Australia's biggest AI users are Millennials. Its biggest AI sceptics are Gen Z

Ask most Australians which generation is leading on AI and they will say Gen Z. 

New research released by Oysterly Media says otherwise. Millennials use AI more, trust it more, and are more commercially active with it. Gen Z, meanwhile, has become the most sceptical cohort of all.

The report, “The Changing Landscape of Discovery and Trust”, released today by Oysterly Media, and conducted by Oysterly Media and Oaktree Insights and Consulting,  surveyed 1,200 Australians and found that Millennials are the most commercially engaged AI generation: Almost two thirds( 64%) already use AI tools to search, compare or make sense of options, compared with 56.8 per cent of Gen Z and 41.9 per cent of Gen X. Millennials are also the most likely to act on AI outputs, with 68.3 per cent saying they trust AI when sources are clearly shown, compared with 58.1 per cent overall and just 45.3 per cent of Gen X. 

Gen Z tells a different story. Despite being the second highest users of AI, they are the most likely of any generation to name AI assistants as their least trusted source of information as Melissa Laurie, CEO of Oysterly Media explains: "Most people assume Gen Z are leading the AI charge. The data tells a more nuanced story. Gen Z have never known a world without algorithmic feeds, targeted ads and optimised content to get their attention.  That experience builds a different kind of media literacy. They've learned to interrogate what they're being shown and why. It makes sense they would bring that same scrutiny to AI."

Gen Z: The Most Conflicted Cohort

Gen Z's relationship with AI is the most polarised across all respondents. Almost a fifth of them (19.2%) say AI assistants are their most trusted source when researching products and services. But a larger proportion (27.8%) say AI assistants are their least trusted source, the widest gap between most and least trusted of any demographic in the research. 

"Growing up online didn't make Gen Z more trusting. It made them more skeptical of everyone trying to reach them. They've developed finely tuned filters for what feels authentic and what doesn't," says Melissa. "For them, AI doesn't pass that test yet. They are using it, but they're also watching it closely. Brands that assume Gen Z will simply follow the AI trends are misreading the room."

AI Is Valued for Speed, Not Trusted as Authority

Across all generations, Australians are clear about what they think AI is good for. Nearly three quarters (74.6%) agree that AI summaries can save time but can also miss important details. Only 6.5 per cent say they would start a product search with an AI assistant, while only 3.3 per cent would start with an AI summary.

The commercial implications go further. Almost 80 per cent of respondents (77.8%) say it’s getting harder to tell what is genuinely independent versus what is sponsored, while 70.5 per cent are worried ads or sponsorship will influence AI recommendations. A further 61.2 per cent say they would trust AI less if ads started appearing inside answers. 

“AI has a trust problem it hasn't earned its way out of yet. Australians will use it for speed, but the moment it feels like a paid feed, they're gone. That's not a technical problem. That's a credibility problem,” says Melissa.

Transparency is a Must

 

Importantly, all generations seemed in sync on the need for transparency.  More than eight in ten respondents (81.5%) believe AI-generated images and videos should be clearly labelled (that included 76.9% of Gen Z, 82.3% of Millennials and 84.6% of Gen X.) 

These findings are consistent with a broader picture of Australian AI scepticism. A 2025 global study by KPMG and the University of Melbourne found that only 36 per cent of Australians said they are willing to trust AI applications, placing Australia among the lowest-ranking countries globally on AI trust despite half the population using it regularly. The Medianet 2026 Australian Media Landscape Report also found that 93% of journalists now express concern about AI's impact on journalistic integrity, up from 88% the previous year.

"Transparency isn't a differentiator anymore. It's a baseline," Melissa says. "Australians across every generation are saying they expect AI content to be labelled, sources to be shown, and commercial influence to be disclosed. The organisations that build those safeguards in now will be the best ones placed to earn durable trust."

Key Findings at a Glance

• 64% of Millennials use AI tools to search, compare or make sense of options, versus 56.8% of Gen Z and 41.9% of Gen X
• 68.3% of Millennials are more likely to trust AI outputs when sources are shown, versus 58.1% overall and 45.3% of Gen X
• 19.2% of Gen Z trust AI assistants most when researching, but 27.8% trust them least, the widest polarisation gap across all respondents
• 27% of Gen Z trust search engine AI summaries least of all sources
• 74.6% agree AI summaries save time but can miss important details
• Only 6.5% would start a product search using an AI assistant
• 70.5% are concerned ads or sponsorship will influence AI recommendations
• 61.2% would trust AI less if ads appeared inside answers
• 81.5% believe AI-generated images and videos should be clearly labelled, including 76.9% of Gen Z, 82.3% of Millennials and 84.6% of Gen X

This is an additional angle to the broader Trust Crisis research issued via Medianet this morning, with a fresh data cut on the generational story.

Methodology

The “The Changing Landscape of Discovery and Trust” was conducted by Oysterly Media and Oaktree Insights and Consulting in Q1 2026, surveying 1,200 Australians drawn from all states and territories. The sample was weighted to reflect the Australian population by age, gender and location.

 

Media enquiries

Fiona Hamann                         or                                 Effie DCunha

Hamann Communication                                             Hamann Communication

0415 191 659                                                              0478 718 725 

[email protected]                          [email protected]

 

 

About us:

About Oysterly Media

Oysterly Media is an Australian-founded short form video agency that specialises in Social Discovery,  helping brands grow through standout short-form content, sharp strategy and trend-driven storytelling. Founded by Melissa Laurie in 2022, the company specialises in brand owned, user-generated content and trains marketing teams how to activate employee generated content within their organisations. They use proprietary social search tools to make brand videos searchable, scroll-stopping and built to perform. Oysterly Media works with brands globally and is headquartered in Singapore. For more information visit oysterlymedia.com.

Contact details:

Fiona Hamann

0415 191 659

[email protected]