It’s hard to know these days whether we’re dealing with real people or artificial intelligence (AI), to the point where sometimes even the experts can’t tell.
To say AI has invaded our lives without invitation is an understatement, but in some areas – notably medical science and advanced mathematics – it is potentially proving a force for good. In other areas, not so much.
The issue comes down to who is using AI, and what they’re using it for. And the problem is that it has been unleashed on the consumer marketplace without consumer protections in place. Regulations have barely started to catch up.
Products and services may boast that they’re “powered by AI” or “AI assisted” or the like, but new CHOICE research reveals that Australian consumers don’t believe the imposition of this out-of-control technology is improving the goods and services they buy.
AI could result in one of the biggest shifts in power away from consumers we’ve seen
CHOICE senior campaigns and policy advisor, Jordan Cornelius
In fact, AI’s invasion of the consumer marketplace seems designed to get us to pay more by exploiting what it knows about us and by replacing as many actual humans as possible. And given its accessibility and capabilities, it’s no surprise that it’s become a favourite tool of scammers too.
“AI could result in one of the biggest shifts in power away from consumers we’ve seen,” says CHOICE senior campaigns and policy advisor, Jordan Cornelius.
“It has the potential to erode our ability to assess value or shop around – through highly individualised surveillance pricing, dark patterns, and poor customer service experience.”
Less than 1 in 10 (9%) Australians think that AI is making products and services better quality.
Half of Australians (51%) say that the use of AI chat bots for customer service is making their experience much worse.
Half of Australians (49%) say that the use of AI is making the prevalence of scams they see much worse .
70% of Australians disagree that businesses should be trusted to use AI how they think is best.
83% of Australians say that the government should ensure there are laws that mitigate the risks of AI to consumers.
The federal government launched its National AI Plan in December last year, which says it aims to grow the AI industry to the benefit of the public while also keeping us safe from AI misuse.
The launch of the government’s AI Safety Institute soon followed, which says it’s committed to gaining insights into the “actual effects of AI technologies on families, communities, businesses and society more broadly”.
Half of Australians say AI is making the prevalence of scams they see much worse
CHOICE senior campaigns and policy advisor, Jordan Cornelius
In the meantime, the profligate use of AI continues without restraint.
“One of the scariest parts of AI is its ability to supercharge scams,” says Cornelius.
“Half of Australians say AI is making the prevalence of scams they see much worse. In the hands of scammers, AI has been used to generate deepfake videos, synthetic voice clones, and scam advertisements to lure people in so scammers can steal their money.”
Whether it’s AI systems discriminating against women, pushing people to gambling platforms, or invading our medical privacy, CHOICE has taken on board the concerns and frustrations we’ve heard from consumers. We’re calling on the federal government to undertake the following:
A ban on businesses using personal information to set individualised prices for consumers
Strengthening of proposed privacy reforms so that they apply regardless of the type or size of the business
Bringing AI chat bots, email services, organic search, online marketplaces and dating apps into the new Scams Prevention Framework
More resources for the ACCC to tackle and target the misuse of AI against consumers
A pathway for Australians to access fair and timely help and redress if they experience issues with digital services
“We’re already seeing the disastrous impacts AI can have on consumers, and without safeguards, this is likely to worsen,” Cornelius says.
“We believe the government urgently needs to introduce laws that address the emerging risks AI poses to consumers – a view that is shared by 83% of Australians in our survey.
“Without new, stronger laws, Australia’s consumer protection framework will simply not be able to keep pace with the significant harms associated with AI.”
Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn
Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn
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