Australia’s digital ambitions have been rapidly advancing. According to the findings of our latest Publicis Sapient Digital Citizen Report 2024 – one of the largest annual surveys on digital government services in Australia conducted by a private organisation where we spoke with more than 5,000 Australians from all walks of life – the number of people using government services remained stable in 2023. A vast majority (85%) used online services in the past 12 months. But even as digital services are becoming a normal part of life for many Australian citizens, the rising cost of living and the emergence of Artificial Intelligence (AI) have affected digital adoption rates across the country. Research shows that nearly half (49%) of people who experienced a life event in the last 12 months did not use an online service that was available to them.

Rising costs have led to a knock-on effect on digital outcomes. The number of Australians describing their financial situation in 2023 as precarious has increased by 85%, compared to 2022. At the same time, the findings of the survey reveal that a third of respondents in households earning less than $100k also struggled to find, use or understand online government services compared with just 23% of higher earners. The survey also found a 10% gap between higher and lower earners who used myGovID and digital wallets.

Despite improved accessibility, transparency, speed and user-friendliness enabling a more permanent shift to digital services, there is a correlation between income generation and digital adoption.

It isn’t just the cost-of-living crisis affecting digital adoption rates. Our survey shows that the emergence of new technology is also disrupting the path of progress. AI has huge potential to improve the way government organisations deliver services, and Australian citizens are aware of the benefits. Research showed that 40% of Australians have used Generative AI in the last year, and 21% use it on at least a weekly basis.

Our survey shows that 55% of Australians would support the use of AI to improve government services. Despite the promise it holds, there are strong risk perceptions among a vast majority (94%) of respondents, who expect governance and transparency around the regulation of AI. As the technology evolves and is more widely accepted in society, governments will need to make this a top priority or risk diminishing adoption rates.

If anything, 2023 showed that economic challenges and emerging technologies can quickly disrupt the path of progress. Staying abreast of trends and adopting the right strategies can help governments build more accessible and inclusive services. Furthermore, if they get it right, and especially address specific pain points – whether improved regulation, accessibility or enhanced trust in data protection, more people will be able to experience the benefits of the services, and trust in government services will naturally increase.