Kiwis sceptical of AI in local businesses, reports Qualtrics

Qualtrics has unveiled its 2025 Consumer Experience Trends report, highlighting significant concerns among New Zealand consumers regarding the use of artificial intelligence by local organisations.

The report, which surveyed 23,730 respondents across 23 countries including 600 in New Zealand, indicates a growing scepticism towards AI. A substantial 80% of New Zealand consumers reportedly distrust local companies to employ AI responsibly, marking a 25% drop in consumer comfort with the technology over the past year.

Isabelle Zdatny, a Customer Loyalty Specialist at Qualtrics, commented on the emerging trend: "New Zealand consumers are some of the biggest sceptics anywhere in the world when it comes to AI. Companies are more excited than consumers about using AI, and there's a lot of work ahead to persuade people of the benefits. The best uses of AI right now in customer experience are when it's focused on solving issues or problems people care about."

Specific concerns about AI use focus on the need for human interaction, cited by 60% of consumers, fears of job losses, noted by 55%, and the potential misuse of personal data by 50% of those surveyed.

In addition to AI scepticism, the report identifies persistent consumer pain points such as poor communication and service delivery issues, which could threaten future consumer spending if not addressed. Despite a reduction in poor experiences reported, New Zealand has seen a decline in trust, satisfaction, and recommendations from consumers, alongside a 17% rise in spending cuts after negative experiences.

"There is no excuse for getting the fundamentals of good customer experience wrong, but too often consumers are saying this is what's happening with poor communication and service issues. Nice-to-have industries continue to raise the bar on what good customer experience looks like, and with more than half of bad experiences ending in a spending cut, businesses and governments can no longer afford to fall behind," Zdatny stated.

The phenomenon termed the 'Silent Treatment' is affecting consumer-brand relationships, with an increasing number of consumers remaining silent about both positive and negative experiences. This trend complicates efforts for businesses to gauge true customer satisfaction, with consumers now 7 percentage points less likely to express dissatisfaction than last year.

"Customers are giving brands the silent treatment, and if organisations don't find a way to fix this issue, we could see more disgruntled consumers in New Zealand," Zdatny explained. "Customers are expecting a better experience, but simultaneously they're not willing to share the insights brands need to deliver one. Overcoming this gap requires brands to rethink how they engage with customers and go beyond the traditional feedback survey."

On the matter of privacy versus personalisation, the report finds New Zealand consumers torn between the desire for tailored experiences and concerns over privacy violations. While 65% of consumers express a preference for personalised services, 50% are apprehensive about the privacy implications of data sharing.

Zdatny remarked: "Giving customers what they want is not a conversation about privacy or personalisation. It's about trust. Brands need to identify what they need to do to win trust back without overstepping the mark and turning customers away instead."

Trust has emerged as the cornerstone of consumer satisfaction, with 65% of New Zealand respondents prioritising the accuracy of information provided by businesses over aspects such as speed or convenience. Zdatny emphasised the importance of trust by stating, "It's dangerous to assume that existing customers will stay loyal without intentional effort to keep them. To deliver a great customer experience, following through on the most basic commitments and delivering what's been promised is what's most important to consumers."