Australians prioritise privacy & AI personalisation in online shopping

New research highlights Australian consumers' top concerns and expectations in online shopping, with data privacy and customer service identified as significant friction points.

The findings come from the Publicis Sapient 2025 Digital Commerce Imperative: Meeting E-commerce Customer Expectations in an AI-Led Landscape, which surveyed 7,562 consumers globally, including over 1,000 Australians. The report examines digital commerce satisfaction in Australia, France, Germany, the UK and the US.

Privacy and service concerns

According to the report, 42% of Australian consumers identified data privacy as a major concern when shopping online. Additionally, 43% cited difficulties in reaching customer service as another leading source of frustration. Other common issues included poor website navigation and confusing check-out processes (34%), slow or crashing websites (35%), and uncertain or insecure payment options (34%).

The study also reveals differences in satisfaction across various industries. Banking and financial services received the highest customer satisfaction in 2025, reaching 67%, up from 64% in 2023. The travel and hospitality sector saw the most notable increase, climbing to 60% satisfaction compared with 55% previously.

Insurance satisfaction rates remained unchanged at 47%, while slight declines were noted in retail, which fell to 63% satisfaction from 65%, and in healthcare, which decreased to 41% from 43% in the same period.

Generational and regional trends

The research highlighted generational differences in the use and appreciation of AI-enabled online shopping features. Gen Z and Millennials were found to be more open to adopting tools such as personalised discounts, tailored recommendations, and conversational assistants than older demographics.

Angela Robinson, Country Managing Director, Publicis Sapient Australia, said:

"In digital commerce, success starts with the customer. By fixing the pain points, such as clunky service or data privacy concerns, we can create smoother, more satisfying experiences. And now with the growing interest in AI-enabled features, especially among younger customers, there's a huge opportunity to stand out through personalisation that truly connects."

Australians are notably receptive to AI technologies in online shopping. Approximately 32% use and find value in personalised discounts, 29% appreciate tailored recommendations, and 30% benefit from conversational assistants. These figures indicate the most openness to AI-enabled commerce features among the countries surveyed.

Profile incentives and trust

Exclusive discounts remain the most effective incentive for encouraging Australians to create customer profiles and share personal information. However, a significant portion - nearly one in four - remain uninterested in any incentives to share personal data.

When choosing where to shop online, 43% of Australians prefer brand websites due to trust, while 46% gravitate towards marketplaces for lower prices. The seamless and rapid check-out experience topped the list of future consumer expectations, with 60% of respondents expressing this preference.

Business focus areas

The report identifies five key focus areas for Australian businesses operating in online retail:

First, organisations are advised to enhance digital experiences by investing in both website and app performance. Meeting the expectations of tech-savvy consumers and delivering a seamless check-out are considered essential for satisfaction.

Second, personalisation of marketing efforts is recommended, using AI to engage younger consumers through personalised offers, recommendations, and conversational support, with strategies tailored to diverse demographic groups.

Third, the study suggests addressing main friction points by improving customer service touchpoints and strengthening data privacy measures, using regular feedback to identify new and existing issues.

Fourth, businesses are encouraged to offer compelling incentives for consumers to create profiles and share data, utilising creative approaches to encourage participation.

Finally, building and communicating trust is deemed critical. This includes highlighting the security of brand websites and maintaining transparency regarding data privacy and protection initiatives, aiming to attract consumers who prioritise security and trust when shopping online.