Australia’s distrust in AI spurs calls for greater governance

A recent global study conducted by the Melbourne Business School at the University of Melbourne has highlighted how Australia compares to other nations in terms of their AI knowledge.

Australians reside near the bottom of the pack when it comes to AI training and education, according to the Trust, attitudes, and use of artificial intelligence: A global study 2025 led by Professor Nicole Gillespie.

The data showed that just 24 per cent of Australians have undertaken AI-related training or education compared to 39 per cent globally. On top of that, over 60 per cent of Aussies reported having a low-level knowledge of AI – compared to 48 per cent globally.

“AI literacy consistently emerges in our research as a cross-cutting enabler: it is associated with greater use, trust, acceptance, and critical engagement with AI output, and more benefits from AI use, including better performance in the workplace,” said Gillespie.

“An important foundation to building trust and unlocking the benefits of AI is developing literacy through accessible training, workplace support, and public education.”

In line with the lack of AI literacy, just 30 per cent of Australians believe the benefits of AI outweigh the risks – ranking the lowest of any country – highlighting a massive distrust among Australians towards AI compared to other nations.

“The public’s trust of AI technologies and their safe and secure use is central to acceptance and adoption,” said Gillespie.

“Yet our research reveals that 78 per cent of Australians are concerned about a range of negative outcomes from the use of AI systems, and 37 per cent have personally experienced or observed negative outcomes ranging from inaccuracy, misinformation and manipulation, deskilling, and loss of privacy or IP.”

Australia also has a lack of foresight when it comes to realising the benefits of AI, residing at 55 per cent versus 73 per cent globally.

This distrust has spurred calls for greater governance, with 77 per cent of Australians agreeing AI regulation is a necessary parameter. Regulation through international laws (78 per cent), oversight by the government and existing regulators (80 per cent), and co-regulation with industry (77 per cent) were all supported by Australian respondents.

“The research reveals a tension where people are experiencing benefits but also potentially negative impacts from AI. This is fuelling a public mandate for stronger regulation and governance and a growing need for reassurance that AI systems are being used in a safe, secure, and responsible way,” said Gillespie.

With the supported regulations in place, 83 per cent of Australians say they would be more willing to trust AI systems when those parameters were in place.

KPMG Australia chief digital officer John Munnelly argued that this distrust offers organisations a “striking opportunity”.

“There is a striking opportunity for industry and government to foster trust in AI by building on the existing Voluntary AI Safety Standards and ensuring Australian safeguards expand in line with emerging international laws and regulations. Organisations also need to invest in the training and development of their people,” said Munnelly.

The report also highlighted the risks associated with the workplace usage of AI, noting that many workers are intentionally using AI on a regular basis, which is manifesting complex risks for organisations.

The data showed that almost half of employees (48 per cent) admit to using AI in ways that contravene company policies – including the upload of sensitive organisational information.

Many are also hiding the fact that they are relying on AI tools to complete their job tasks, often presenting solely AI-generated work as their own.

“Psychological safety around the use of AI in work is critical. People need to feel comfortable to openly share and experiment with how they are using AI in their work and learn from others for greater transparency and accountability,” said Gillespie.

Munnelly said: “Many organisations are rapidly deploying AI without proper consideration being given to the structures needed to ensure transparency, accountability and ethical oversight – all of which are essential ingredients for trust.”