Australians are calling for better customer service experiences from the tech giants, with new data highlighting a decrease in trust with AI services and a desire for more human-to-human problem solving.
The Consumer Policy Research Centre (CPRC) released a report that investigated challenges facing Australians when interacting with social media and marketplaces.
The ‘Someone To Turn To’ report was commissioned by the Telecommunications Industry Ombudsman (TIO) to support the implementation of a third-party complaints handling system that Australians can use to resolve digital disputes.
The report found that four in five Australians (80 per cent) had encountered an online challenge in the last 12 months, with close to half experiencing four or more issues in a span of just one year (45 per cent).
The findings also identified the biggest offenders with online marketplaces like Temu and eBay, and social media platforms collecting the most complaints.
In the report, almost a third attributed their problem to a social media platform (29 per cent). One in seven blamed Meta for adversity they’ve encountered online.
In some cases, customers were unable to delete their account or receive a refund, while in others they were exposed to harmful material, misinformation or too many ads when interacting with a platform.
The CPRC interviewed over 1000 people when collecting the data, which also revealed a strong desire for human connection in the complaints handling process, rather than AI alternatives like chatbots.
“The design architecture of navigating customer service online appears to mimic that of a gaming platform of a game no one wants to play,” the report outlined.
“The default of AI-enabled customer service appears to be offered as a ‘take it or leave it approach’.”
The findings from the report outline that people need “clear pathways” to resolve issues and “access to human support when they need it”, said TIO ombudsman Cynthia Gebert.
“This research confirms what we have been hearing from people and small businesses for a long time – digital and social media issues take time, cost money and create stress,” she said.
“People rely on digital platforms to work, run small businesses and stay connected. Expectations rise with what’s at risk when those services fail.”
Many survey participants also admitted that these issues impacted their mental health and their level of trust in both AI and in-person customer service experiences.
“Over half of Australians reported having lower trust online (53 per cent) and 30 per cent noted that they now are less trustworthy of other people, as a direct result of the challenges they’ve experienced online,” the report found.
Younger people were also more likely to experience mental health problems caused by challenges in the complaints handling process.
This data found Millennials and Gen Z were more likely to be exposed to offensive, harmful or distressing content than other generations.
Too many Australians are getting stuck in a “complaints loop” and that trust needs to be restored by digital customer services operations, CPRC deputy CEO and author of the report Chandni Gupta said.
“This problem harms individuals, undermines trust in the digital economy and weakens the accountability needed to ensure markets work for people,” she said.
“When things go wrong online, Australians are too often left to fend for themselves, navigating complaint processes that are hard to access and navigate, and frequently fail to deliver meaningful outcomes.”
There is currently no external resolution platform for Australians to use when their complaints are not handled appropriately, but the report found that 73 per cent supported the idea of a free and independent platform where they can voice their concerns.