Click Smarter, Not Harder: How AI is Transforming Australian Shopping Habits
Today’s email is brought to you by Empower your podcasting vision with a suite of creative solutions at your fingertips.
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.
Truth matters. Quality journalism costs.
Your subscription to Mencari directly funds the investigative reporting our democracy needs. For less than a coffee per week, you enable our journalists to uncover stories that powerful interests would rather keep hidden. There is no corporate influence involved. No compromises. Just honest journalism when we need it most.
Not ready to be paid subscribe, but appreciate the newsletter ? Grab us a beer or snag the exclusive ad spot at the top of next week's newsletter.
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.
About us:
PayPal has been revolutionising commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://about.pypl.com and https://investor.pypl.com
PayPal Australia was established in 2005 and has more than 9.5 million active Australian customer accounts. PayPal enables Australian consumers and businesses to easily and securely send, receive, and manage their money. The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence number 304962. PayPal credit services including PayPal Pay in 4 are provided by PayPal Credit Pty Limited (ACN 600 629 258). For more information visit PayPal Australia Newsroom for more information and follow us on Instagram or Facebook.
About the research
Produced by PayPal Australia, based on an online study conducted by YouGov with n=1044 sample size. The consumer research consisted of a sample audience of Australians aged 18-75, and was weighted by age, gender and location to ensure data was nationally representative. Quotas and samples were set on turnover and location. The research was fielded from 14 –16 May 2025.
Got a News Tip?
Contact our editor via Proton Mail encrypted, X Direct Message, LinkedIn, or email. You can securely message him on Signal by using his username, Miko Santos.
Sustaining Mencari Requires Your Support
Independent journalism costs money. Help us continue delivering in-depth investigations and unfiltered commentary on the world's real stories. Your financial contribution enables thorough investigative work and thoughtful analysis, all supported by a dedicated community committed to accuracy and transparency.
Subscribe today to unlock our full archive of investigative reporting and fearless analysis. Subscribing to independent media outlets represents more than just information consumption—it embodies a commitment to factual reporting.
As well as knowing you’re keeping Mencari (Australia) alive, you’ll also get:
Get breaking news AS IT HAPPENS - Gain instant access to our real-time coverage and analysis when major stories break, keeping you ahead of the curve
Unlock our COMPLETE content library - Enjoy unlimited access to every newsletter, podcast episode, and exclusive archive—all seamlessly available in your favorite podcast apps.
Join the conversation that matters - Be part of our vibrant community with full commenting privileges on all content, directly supporting The Evening Post (Australia)
Catch up on some of Mencari’s recent stories:
It only takes a minute to help us investigate fearlessly and expose lies and wrongdoing to hold power accountable. Thanks!