How Australia’s digital evolution continues to accelerate

Drawing insights from surveys, forums, and interviews with consumers and small businesses, the research reveals a digital landscape that is richer, more complex – and more critical – than ever before.

Australia’s digital evolution is accelerating, bringing both opportunities and challenges. From AI adoption to cybersecurity readiness, the findings highlight a pressing need for education, regulation, and support – ensuring Australians can harness the benefits of technology while mitigating risks.

The internet: An indispensable lifeline

Since 2021, reliance on the internet has surged:

• 64% of Australians say they cannot do their job without it (up from 58% in 2021).
• 51% of small businesses report they cannot operate without the internet (up from 44%).
• Regional Australia leads the charge: 57% of regional small businesses now depend on the internet, surpassing metropolitan counterparts for the first time.

Remote work continues to reinforce the internet’s role in improving work-life balance, making connectivity a cornerstone of modern employment.

Cybersecurity: Confidence vs. Concern

While 52% of Australians now feel very confident online – a rebound from 41% in 2023 after major data breaches – concerns remain:

• 83% worry about staying ahead of cybercriminals, citing increasingly sophisticated attacks.
• 67% avoid certain online activities to reduce risk.
• Alarmingly, only 20% of small businesses have a cybersecurity policy or staff training in place – a decline since 2021.

The gap between awareness and action underscores an urgent need for education and support to strengthen cyber resilience.

AI adoption: Mainstream, but monitored

Generative AI has moved from novelty to necessity:

• 56% of Australians now use AI (up from 45% in 2024), with young men (18–34) leading adoption at 79%.
• Top uses include searching for answers (30%) and problem-solving (18%).
• Despite enthusiasm, 70% want control over how their data is used, and 64% demand stronger regulatory safeguards.

AI’s rise brings opportunity – but also a call for transparency and accountability.

Digital ID: Awareness vs. Reality

For the first time, the study measured attitudes toward Digital ID:

• 86% of Digital ID holders and 80% of non-holders believe providers must be regulated and accountable for privacy breaches.
• Only 34% of respondents think they have a Digital ID, yet government data shows 55% of Australians hold one (myID). Increasing awareness could unlock broader adoption and benefits.

Cost of Living: Digital Solutions and Side Hustles

Australians are leveraging the internet to ease financial pressure:

• 72% use online tools to find savings, from price comparison sites to discount platforms.
• 22% have started or expanded a side hustle, with 83% saying it wouldn’t be possible without the internet.
• 52% have cut digital spending, downgrading subscriptions and delaying device upgrades.

Shifting Digital Skills and Gender Dynamics

Cybersecurity skills are in demand:

• 69% of working-age Australians see them as vital for current or future careers (up from 62% in 2024).
• 81% of small businesses rate these skills as important for their operations.

Gender gaps persist:

• 72% of women feel they lack the technical skills for IT careers, compared to 54% of men.
• Encouragingly, younger women (18–34) are challenging stereotypes, showing greater confidence and interest in tech roles.

Five key trends at a glance

1. Internet reliance is growing, especially in regional areas.
2. Remote work strengthens belief in tech’s role in work-life balance.
3. Cybersecurity habits are improving, but business readiness lags.
4. AI adoption is mainstream, with calls for regulation.
5. Gender dynamics in tech are shifting, driven by younger women.