Agentic AI and the Future of Online Shopping in Australia
New research from PayPal Australia highlights a significant shift in how Australians are engaging with artificial intelligence (AI) in their online shopping habits. The findings suggest that AI is becoming a mainstream tool for consumers, with growing interest in its potential to simplify and personalise the shopping experience.
Key Findings from the Study
- AI usage is growing: Nearly half of Australians (48%) have used AI assistants to search for products online. Among those under 45, this figure rises to 66%.
- Mainstream expectations: 78% of Australians believe AI shopping tools will become a regular part of the online shopping experience.
- Trust in AI recommendations: 61% of respondents say they would trust AI to make product suggestions. However, only 18% are fully confident in AI-led recommendations, while 43% prefer to use AI selectively depending on the product category.
- Privacy concerns remain: Despite growing usage, 92% of Australians have concerns about using AI for shopping, with 64% citing privacy and data security as their top issue.
- Personalisation trade-off: 57% are willing to share their shopping habits and preferences to receive more tailored AI recommendations.
What Is Agentic AI?
Agentic AI refers to systems that can act independently on behalf of users—researching products, comparing options, and even completing purchases. This concept, known as agentic commerce, represents a shift from traditional search-based shopping to more autonomous, AI-driven experiences.
Industry Perspective
Simon Banks, Managing Director of PayPal Australia, describes agentic AI as a transformative development in ecommerce. He notes that natural language interfaces will allow users to describe what they want in everyday terms, with AI delivering curated results instantly—potentially reducing the need for browsing across multiple sites.
PayPal is exploring ways to integrate its payment services into these AI-powered environments. A recent partnership with Perplexity aims to enable users to search for products, book travel, or buy tickets within a chat interface, with seamless checkout via PayPal.
Consumer Priorities
Australians are particularly interested in using AI for practical benefits:
- Price tracking and deal alerts are the most desired features, with 38% expressing interest.
- Ease of use and trust are critical factors in adoption, with 30% saying they would only use AI shopping tools from trusted brands or platforms.
Implications for Retailers
Retailers may need to rethink how they present products and engage with customers. As agentic AI becomes more common, visibility in natural language search and integration with AI platforms could become essential for reaching consumers.
