Is your workforce sceptical of AI? Here's why that's your competitive advantage.

Cautious about AI? That might be your biggest strength. Explore how scepticism can drive smarter, more inclusive innovation.

In brief

• Cultural pragmatism in Australia and New Zealand fosters critical thinking that can lead to more ethical and inclusive AI adoption.
• Sceptical employees often surface real barriers to AI implementation, making them valuable contributors to pilot programs.
• Building trust through transparency, tailored training, and inclusive design is essential for successful AI integration.

If you're a technology or people leader in Australia or New Zealand, you've probably felt it. That collective hesitation when AI comes up in meetings. The cautious questions, the "let's see how this plays out" responses.

You're not imagining it. Australians and New Zealanders are among the world’s biggest artificial intelligence sceptics. We sit near the bottom of the global trust table. The latest EY AI Sentiment Index scores Australia and Aotearoa New Zealand just 54 and 53 out of 100, respectively, for their enthusiasm for AI. That’s far behind markets like India (88), China (88) and South Korea (79).

Reading these statistics makes me wonder: What is it about the cultural DNA and collective psyche of Australia and New Zealand that makes us sceptical of AI? And how might we lean into this scepticism as a strength?

Our cultural code: show us, don’t sell us

I’ve been reading Andrew Low’s We Should Be So Lucky, which unpacks the secrets behind Australia’s remarkable success and why our prosperity is more than luck. Low describes a national character shaped by 'sceptical pragmatism’ – not easily sold on hype, and instead seeking utility, fairness and inclusion.

This mindset defines both our nations. My Kiwi colleagues talk about the ‘Number 8 wire’ mindset–solving problems practically with what’s to hand.

Maybe it’s our geographical isolation or our well-known instinct to give people a fair go that also plays into our nervousness about AI. Whatever its origin, our sceptical pragmatism might be the key to making AI work for everyone.

Sceptics ask better questions

Just 37% of Australians and 28% of New Zealanders believe the benefits of AI outweigh the risks – far below the global average of 51%. We’re also more likely than most to worry that AI will harm vulnerable people – 70% of Australians and 67% of New Zealanders share this concern, compared to 57% globally.

I don’t think that means we’re anti-AI. It means we’re asking for something more: accountability, inclusion and proof that it’s worth trusting.

We want to know: Will it make our lives better? Will it be used ethically? Will it leave people behind? These are the right questions.

I recently sat down with Walkley award-winning journalist Tracey Spicer AM for EY’s Change Happens podcast to explore these questions. Tracey is a leading voice on AI bias, calling out the bias baked into data sets and decision logic. As Tracey said during the podcast, AI is “an opinion of how the world should work, written in code”.

So when we ask hard questions about AI, it’s for good reason. It’s important to identify the risks, surface concerns, and test your approach before you’ve committed significant resources.

This article is the second in the new EY AI Sentiment Index series, which unpacks the cultural roots of our AI scepticism – and why pragmatism, not pessimism, might be our secret weapon. Next up, EY Oceania Financial Services AI and Digital Transformation Partner, Lukas Bower, explores how Australia's cultural scepticism toward AI is paradoxically fuelling some of the most ambitious enterprise AI adoption efforts in the world, emphasising that confidence - not capability - is the key constraint to unlocking widespread, effective use.

Summary

In a region known for its pragmatic mindset, AI scepticism isn’t a roadblock but a roadmap. By asking tough questions and demanding transparency, Australia and New Zealand are uniquely positioned to lead in responsible AI adoption. This article encourages leaders to embrace caution as a catalyst for smarter, more inclusive innovation. From transparent communication to role-specific training and ethical data practices, the path forward lies in trust, not hype. As the world races ahead, our strength may lie in pausing to ask: is this truly better for everyone? That’s not resistance, it’s leadership.