Two-thirds of Australians would be willing to use a branded AI-only service, but only if it costs less and has better functionality than the service they currently use. This is one of the key findings of a new study by media agency Atomic 212° that challenges the idea that consumers are resistant to AI.
The Cost of Convenience report is based on a survey of 1,005 Australians conducted in March 2026 by the agency’s research tool, Sonar. We covered five consumer categories: Retail, Banking & Insurance, Automotive, Utilities, and Travel.
63% of those surveyed said they would accept an AI-only service at a lower price point than they currently pay. Among people between the ages of 18 and 34, the percentage rises to 80%. For people over 55, it’s 51%.
Sonar has found that 10% to 20% savings is the criteria for most people to consider switching to an AI-only service.
The new research comes as Australian adoption of AI continues to grow rapidly. According to research from Google and the Australian Research Council, 60% of Australian adults now use AI, up from 5% in 2022.
According to the Publicis Sapient 2025 Digital Citizens Report, the most common use of AI among Australians is to find information and answer questions, cited by 42% of respondents. Image generation came in second at 24%, followed by understanding news and current events (22%) and teaching and learning (21%).
Despite rapid adoption, most Australians have only scratched the surface of AI’s capabilities. The Australian Digital Inclusion Index 2025 found that 83% of Australian-generated AI output is text-based, suggesting that the majority of users have yet to move beyond the most basic applications.
Sonar found that people are broadly positive about AI as long as it improves the experience rather than replacing human judgment when it matters most. 84% expect to know when dealing with an AI service, 40% want a clear path to a human in case of an issue, and 32% want transparency about how decisions are made.
According to the survey, 47% of people cited 24/7 availability as the main reason for switching to an AI-only service, 40% cited lower price and 32% cited faster service.
Rory Heffernan (right), CEO of Atomic 212°, said: “The debate over whether Australians are ready for AI-powered brand experiences is over. It’s very clear what they want in return for switching to a service: lower prices, faster service, and the peace of mind that a human will be there when something goes wrong. Brands that meet these needs will do well.”
Asiel Carazo (left), chief strategy officer at Atomic 212°, said there are some common flaws in unsuccessful AI services: “Failed AI applications were cost-cutting exercises.” “They replaced humans without actually fixing anything that was frustrating consumers. Meaningful AI innovations need to meet consumer needs and deliver efficiencies. Just focusing on efficiency won’t work.”
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