Need to know
- The internet is delivering Australians many benefits, with a new report finding most of us would struggle without it
- But concerns about scams and the reliability of new technologies like AI are preventing us from using it more
- A large number of consumers and small businesses would like to see more defences against scams and better AI regulation
Australian consumers and small businesses are keen to use the internet and emerging technologies more, but concerns about cyber safety and the accuracy of AI are holding them back.
This is what emerged in the latest Digital Lives of Australians report, compiled by internet advocacy group auDA.
An 'important asset'
Surveying 1500 consumers and 400 small businesses for its fourth annual study of the online challenges and opportunities facing Australians, auDA found almost all canvassed believed the internet adds value to their lives.
The internet's important role was reflected in the finding that nine out of 10 Australians use it for work and 78% of small businesses would struggle without it.
When asked about what benefits the internet brought them, respondents to the auDA survey listed not only the chance to learn and connect but, increasingly, opportunities to earn money
"The importance of the internet and digital assets can't be underestimated," says Luke Achterstraat, CEO of the Council of Small Business Organisations Australia (COSBOA).
"Small business customers are always looking to potentially shop or receive marketing material online, so it's critical."
When asked about what benefits the internet brought them, respondents to the auDA survey listed not only the chance to learn and connect but, increasingly, opportunities to earn money.
Scam fears holding us back
Online confidence has been affected by the impact of scams and security breaches.
But concerns about threats to cyber safety, such as those posed by scams and data breaches, are preventing Australians from taking greater advantage of this online connectivity.
"Australian consumers and small businesses both say the value they gain from the internet is hampered by cyber security concerns," says auDA CEO Rosemary Sinclair AM.
CHOICE has witnessed this diminishing of value first-hand – in a survey of 280 scam victims late last year, 61% told us they lost confidence in doing financial transactions online after being scammed.
The rise in scams over the last few years has also threatened small enterprises.
"The average cost of a cyber attack for a small business can be in excess of $50,000," says Achterstraat. "That's potentially fatal for [the business]."
Together with 64% of consumers, 55% of small businesses avoid online activity due to concerns about data security, according to auDA's report.
The study also found Australians are looking for greater certainty around how we should approach cyber threats.
Approximately 40% want to strengthen their online security, but don't know how, and 81% of consumers in particular believe companies should face penalties if they fail to protect customer data.
81% of consumers believe companies should face penalties if they fail to protect customer data
Achterstraat says COSBOA would like to see more education for small businesses on tackling cyber threats and continued investment by the federal government in its cyber security strategy, which he believes is well-placed to protect consumers and business.
CHOICE wants to see the government require businesses like banks, telcos and social media platforms, who have the technology and resources to detect, prevent and respond to scams, do more to prevent them and reimburse victims.
Australians want more regulation of new tech
auDA's report found a majority of Australians believed AI tools could help with everyday tasks, while other technologies such as autonomous vehicles could also help them make more time in the day.
But they would feel more optimistic about how new technologies such as generative AI, virtual reality and robotics can be useful in their lives, and more comfortable using the technology, if there were stronger laws in place.
Meanwhile, 57% of small businesses say they're already using AI tools for at least one purpose, with 30% of those saying they were using the programs to answer questions they have.
Consumers and small businesses would feel safer using AI if it was more strongly regulated.
AI anxieties
However, the report also found hesitations around using AI. Consumers in particular came forward with doubts about the accuracy of its output and who legally owns what it produces.
To that end, auDA's research found a sizeable majority of Australians want more regulation of these tools, with 61% of consumers and 67% of small businesses saying they would feel more comfortable using them if there were stronger regulatory safeguards in place.
CHOICE consumer data advocate Kate Bower says there are specific areas where AI is deployed that should be reined-in first.
Strong and clear guardrails for AI will increase consumer trust in the rapidly evolving technology
CHOICE consumer data advocate Kate Bower
"We're calling on the federal government to introduce a strong regulatory framework that would legislate pre-market safeguards for high risk uses of AI, as well as prohibit AI that is very high risk," she explains.
"Strong and clear guardrails for AI will increase consumer trust in the rapidly evolving technology and enable small businesses to reap the benefits while safely managing the risks."
Stock images: Getty, unless otherwise stated.
