AI shopping tools reshape how Australians buy online
Research reveals 48% of Australians already use AI to shop online, with privacy and security shaping adoption.
What’s happening?
From bagging a bargain to tracking prices or matching the perfect lipstick to a skin tone, Australians are turning to artificial intelligence 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. This figure rises 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 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,” said Cathy Jamieson, Head of Consumer Research at PayPal Australia.
Why it matters
AI offers many benefits but is still evolving. Almost 6-in-10 Australians (59%) say they’ve received online shopping results from AI that were unexpected or laughable. Younger generations are most affected, with 81% of Gen Z and 69% of Millennials reporting odd recommendations. This compares to 50% of Gen X and 36% of Baby Boomers.
Despite this, 3-in-5 Australians (61%) say they would trust AI to make product recommendations. Over half (53%) also say they plan to use AI tools for online shopping within the next 12 months.
Cathy Jamieson said, “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.”
Local impact
Another area where Australians are engaging with AI in online shopping is through customer service and sales chatbots. However, 66% of Australians feel that when AI tries too hard to “be human”, it can come off as inauthentic or insincere.
AI is becoming so seamlessly integrated into the shopping experience that 65% of Australians believe they have probably interacted with AI without knowing it.
Privacy and security remain top concerns. 92% of Australians have at least one concern about using AI in online shopping, with 64% specifically worried about the privacy and security of personal information.
Even so, 57% say they are willing to share online shopping habits and preferences to better personalise AI shopping recommendations. However, 30% say they would only engage with AI shopping solutions from brands or platforms they trust.
By the numbers
48% of Australians already use AI for online product search, rising to 66% for under-45s.
78% of Australians expect AI shopping tools to become mainstream in the future.
59% have received unexpected or laughable AI results, with Gen Z most affected at 81%.
61% would trust AI to make recommendations, and 53% plan to use tools in the next year.
92% have at least one concern, with 64% citing security of personal information.
Zoom in
Australians are balancing curiosity with caution as they adopt AI shopping tools. Cathy Jamieson emphasised that clear prompts and trusted platforms are key to success, while younger consumers show the highest engagement but also the highest rate of unusual recommendations.
Zoom out
PayPal has been revolutionising commerce globally for more than 25 years. Operating in around 200 markets, PayPal continues to create innovative experiences that make moving money, selling, and shopping simple, personalised, and secure.
PayPal Australia, established in 2005, has more than 9.5 million active Australian customer accounts. Its services help Australians securely send, receive, and manage money.
What to look for next?
As AI becomes further embedded in online shopping, more Australians will explore these tools over the next 12 months. The focus will remain on personalisation, security, and the role of trust in building confidence.
Research for this report was produced by PayPal Australia and conducted by YouGov. The online study surveyed 1,044 Australians aged 18-75 from 14–16 May 2025. The sample was weighted by age, gender, and location to ensure national representation.