Australians are increasingly unsure whether what they’re looking at online is real. New research from Auros.ai, the human network behind AI, has found widespread scepticism toward AI-generated product advertising, with many consumers unable to tell whether a product is genuine, AI-enhanced, or entirely AI-generated.
The global study surveyed 4,000 adults, including 1,000 Australians, and found that on average, Australians have to stop and question whether an advertisement is real or AI-generated four times a week.
That uncertainty is shaping buying decisions. Almost six in ten (59%) Australians do not trust that products advertised using AI will match their description, and 42% say they have felt duped by such advertising, with 14% saying it has happened more than once. Close to half (44%) say they are now less likely to purchase a product if they know AI was used in its advertising.
The line is blurring
Confidence in spotting the difference is low. Only 34% of Australians feel confident they can tell whether a product is real or AI-generated from an image, while 27% say they can’t tell at all.
When shown six images, a mix of real, AI-enhanced and fully AI-generated products, respondents struggled most with real products that had been heavily enhanced. Only 20% correctly identified a real, AI-enhanced car-engine coffee mug as genuine, while 62% assumed it was entirely AI-generated. The result was starker for a real, AI-enhanced 3D waterfall rug, correctly identified by just 8% of respondents, with 74% believing it was fully AI-generated. Even a straightforward real bedsheet advertisement was only correctly identified by 37% of people, with 40% assuming it was AI-generated.
“AI is making it easier to create compelling product imagery, but growing consumer scepticism means even genuine products risk being dismissed as fake,” said Paul North, General Manager APAC, Auros.ai.
“Brands need to think carefully about how they use AI in their advertising, and understand what makes an ad feel credible to customers. That means listening to how consumers respond to AI-generated content, being transparent with AI use, and making sure any enhancements build confidence rather than doubt in the product.”
Trust shapes spending
Perceptions of quality are also shifting. 42% of Australians believe products marketed using AI are lower quality, compared with 14% who believe they’re higher quality and 44% who see no difference either way. Gen Z respondents were most critical, with 47% saying AI-marketed products are lower quality, closely followed by Baby Boomers at 45%.
More than a third (35%) of consumers say there is no use of AI by an online retailer they’d find acceptable. Among those more open to it, the most comfortable uses were visualising products in the home (30%), AI-powered search recommendations (27%), AI-written product descriptions (25%), AI-generated backgrounds for real products (23%) and virtual try-ons (20%).
Paying for the gap
Among the 59% of Australians who bought a product advertised using AI, 25% said they received an accurate product, while 13% said what arrived did not match what was advertised.
Beauty and cosmetics (27%), clothing (20%) and supplements and wellness products (17%) were named as the categories most associated with dishonest or AI-forward marketing.
Of those who purchased a falsely advertised product, 42% spent an average of $275, a figure that climbed to $357 among Gen Z and $310 among millennials. Once burned, consumers responded in different ways: 36% requested a refund, 27% gave the item away, 19% threw it away and 10% resold it.
AI and Christmas shopping
Despite the scepticism, AI still has a role in how Australians plan to shop this Christmas. Of the 48% planning to use AI for some part of their holiday shopping, the most common uses are finding the best prices (20%), comparing product reviews across websites (17%), suggesting gift ideas (16%), sticking to a budget (13%) and finding deals (13%).
Separately, 48% say AI has already helped them while shopping, most often by finding alternatives to what they were originally looking for (22%), finding the most affordable price (22%) and surfacing product reviews (21%). Even so, only 29% believe AI will make gift-finding easier this Christmas, 17% think it will make the process harder, and 54% expect no difference either way.
“There’s an opportunity for Australian brands to make Christmas shopping easier with AI, whether that’s helping customers compare products or research the right gift. But with consumers still in the experimental stages of AI-assisted shopping, it’s important that businesses test these experiences with real consumers to understand what adds value and where AI might undermine the trust they’re trying to build,” North said.