What’s holding us back on AI? The invisible value exchange

Why AI hesitancy persists in high-trust economies – and how organisations can shift sentiment through transparency and human-led design.

In brief:

• Australians and New Zealanders are more sceptical of AI than global peers, driven by fears of job loss, privacy breaches, and reduced control.
• Trust in AI grows when benefits are tangible, oversight is visible, and users understand the value exchange.
• EY advocates for practical, transparent AI integration that empowers users and builds trust through everyday experiences.

If artificial intelligence is going to help us work smarter, we need to understand what’s slowing us down – and it’s not the technology. It’s the psychology.

AI is already spotting financial fraud, triaging diagnoses, answering questions, serving customers. But in Australia and New Zealand – countries defined by high-trust systems and highly skilled workforces – adoption isn’t accelerating at the pace we’d expect.

This matters. At EY, we believe AI has the power to sharpen decisions, deepen collaboration and unlock better outcomes for people, business and society. But only if it’s trusted and adopted at scale.

Brake or breakthrough?

We recently surveyed more than 15,000 people across 15 countries, including 1,000 apiece in Australia and Aotearoa New Zealand. We wanted to know how people really feel about AI – how it’s shaping trust, behaviour and expectations.

The results are revealed in the 2025 EY AI Sentiment Index. Among the key findings:

• Just 37% of Australians and 28% of New Zealanders believe the benefits of AI outweigh its risks – well below the global average of 51%.
• Around half (AU 51%, NZ 50%) are comfortable with their employer using AI to automate routine workplace tasks.
• Fewer than one in two respondents in either country support the use of AI in their day-to-day lives to simplify tasks or help make decisions.
• Privacy and security top the list of concerns, with 74% of Australians and 73% of New Zealanders citing these as key risks.
• People are also worried that AI is making people less intelligent (AU 53%, NZ 42%).

So, what’s going on?

Fear of loss outweighs hope of reward

This is the quiet force shaping our region’s AI hesitation. People fear job losses, breaches of privacy, loss of control, even the erosion of human judgement. These are concrete concerns.

The upside of AI – like greater efficiency or more time for strategic thinking – often feels vague in comparison to the potential losses.

Behavioural science tells us people are more motivated by the avoidance of loss than the pursuit of gain. When we recognise that fear of loss is more powerful than hope of reward, the sentiment data makes perfect sense.

It’s why three in five consumers on both sides of the Tasman say they trust AI to detect fraud — but one third are comfortable with it offering budgeting tips. AI is trusted as a protector of something we already value, not a pioneer helping us to find new value.

Making the value exchange visible

Are people being asked to change how they work, to trust black-box systems, to hand over control without knowing what they’re getting in return? If so, that’s an unfair value exchange.

Until the benefits of AI clearly outweigh the disruption it brings, hesitation will win.

So how do we shift sentiment? Here’s where organisations can start:

• Flip the script: Lead with value, not features. Show users what’s in it for them.
• Be transparent: Explain how AI is used, what data is involved and who’s accountable.
• Keep humans at the centre: People fear systems they can’t see or control. Visible oversight reduces fear and builds trust.
• Build trust in micro-moments: Demonstrate AI helping someone do their job better.
• Change habits, not hype: Trust comes from leadership, clear language and everyday proof.

Adoption depends on agency, not evangelism

We can’t evangelise our way to trust in AI. But we can create the right conditions for trust and confident adoption.

Our EY teams believe we can play a role in helping build trust and confidence in AI. That’s why we are rolling out a new series of articles with Australian and New Zealand knowledge leaders across sectors – retail, banking, government, human resources – to explore how to build AI adoption from the inside out.

This isn’t about cheerleading. We want to have honest conversations about AI risk and reward.

Because in countries like ours, where knowledge workers drive the economy, we can’t afford to sit on our hands. But we can move forward in a way that brings everyone with us.