AI Adoption in E-commerce Among Australian Businesses and Consumers

Research conducted by PayPal Australia indicates that 42% of Australian businesses are already utilising artificial intelligence (AI) to enhance their e-commerce operations. Additionally, the research found that 43% of Australian consumers are open to using AI to assist them with online shopping.

AI in Business Operations

The study suggests that Australian businesses are ahead of consumers in AI adoption. While 42% of businesses are using AI in some aspect of e-commerce, only 18% of consumers have used a generative AI tool. However, this figure is significantly higher among Australians under 40, with 32% having used such a tool.

AI is primarily used by businesses for tasks such as writing web content, providing personalised product recommendations, creating visual design elements, managing returns and updates on delivery status, responding to social media comments, and detecting fake or auto-generated comments and reviews. Furthermore, 43% of businesses not currently using AI expressed interest in adopting it to improve efficiency and customer experiences.

Consumer Use of AI

More than two-fifths of Australians are open to using AI to assist with online shopping, with this figure rising to more than half for those under 40. Particularly, two-thirds of Gen Z shoppers would use AI for online shopping assistance. The potential of AI in retail includes sophisticated product discovery, optimisation and tracking of shipping and delivery, and personalised product recommendations.

In addition to online shopping, AI can assist in daily life tasks. Meal planning, drafting work-related documents, creating workout plans, online tutoring, and drafting personal documents are among the top uses for AI. Some Australians would even use AI as a conversation partner.

AI in Broader Business Operations

The research also found that 43% of Australian businesses are using AI across their broader operations. The main uses include designing advertising and marketing materials, bookkeeping or accounting tasks, analysing market competition, drafting business-related documents, and creating staff rosters.

Concerns About AI

Despite its benefits, both businesses and consumers recognise potential risks associated with AI. Concerns include biased programming leading to inaccurate recommendations and AI-enabled cybercrime. To mitigate these risks, PayPal has adopted a Responsible AI framework and established a Responsible AI Steering Committee.

AI in Fraud Protection

The rise of AI-powered cyberattacks has led to an increased need for advanced fraud protection. AI-enabled risk prevention solutions are recommended to counter such threats. PayPal uses AI models to assess the risk or potential for fraud in the approximately 58 million transactions it processes daily. PayPal’s use of AI for risk management and advanced fraud detection has significantly reduced its loss rate, demonstrating the impact of AI in enhancing online security.

In summary, AI is increasingly being adopted in e-commerce by both businesses and consumers in Australia. Despite concerns about potential risks, its benefits in enhancing operations, customer experience, and fraud protection are clear.