Digital divide, AI concerns rise with 85% financial hardship jump

Financial hardship among Australians has surged by 85% over the past year, with lower-income households notably underutilising available online government services compared to their higher-income counterparts, as indicated by the latest Publicis Sapient Digital Citizen Report 2024.

The third edition of the annual report, "No Citizen Left Behind" - Delivering Exceptional Digital Services for Every Australian, surveyed responses from over 5,000 Australians to evaluate their engagement with government digital services. According to the findings, 33% of households earning less than AUD $100,000 struggled to locate, use, or comprehend online government services in contrast to 23% of higher-income households.

A discrepancy is also noted in the adoption of myGovID and digital wallets, with about a 10% gap between higher and lower earners.

Additionally, the report highlights lower engagement with digital services among particular demographics, including the unemployed (16 points lower than employed citizens), lower-income households (an 11-point disparity), and those without university education (an 11-point disparity).

Despite a 93% satisfaction rate with government life-event services, lower-income citizens experience more significant difficulty navigating these online services. Steven Metzmacher, VP and Industry Lead, Public Sector at Publicis Sapient ANZ, remarked, "The third edition of our landmark survey reveals that Government digital services are clearly effective with the vast majority of Australians who engage with online services being satisfied."

"There is, however, a growing digital divide which needs to be addressed. More needs to be done to increase adoption and reach sections of the public to ensure the services benefit all Australians, in particular those that need them the most."

The report also explores the role of Artificial Intelligence (AI) in improving government services, with 55% of Australians in favour of its extensive use. Support for AI was notably high among under-45s (65%), high-income households (62%), and those already satisfied with government services relating to life events (65%).

However, concerns about AI remain prevalent. A significant 94% of respondents express worries about AI, and 92% advocate for government regulation of the technology. Almost half (46%) desire complete transparency into the AI's code, a desire more pronounced among individuals with recent mental health struggles (52%) and those in precarious financial situations (56%).

Metzmacher noted, "Australians are broadly satisfied and supportive of the work that the government is doing. There are clearly areas for improvement which the government should continue to pursue to build a stronger, simpler and more accessible digital government for everyone."

In terms of data security and privacy, trust appears to be waning. The percentage of Australians losing trust in the government's handling of data security and privacy issues has risen to 52%, with an 11% increase in concerns about data privacy (48%) compared to the previous year (37%).

This decline in trust is more pronounced among younger citizens, with 59% of under-45s expressing a loss of confidence in the government's ability to protect personal data. Those facing financial difficulty are also more likely to distrust the government with their data.

Metzmacher emphasised, "When citizens worry about their data privacy and security, it dampens their enthusiasm for digital services and can slow down adoption rates."

"Security, privacy, and data governance are foundational to the government’s digital agenda - and clear, reassuring communication about safety measures is just as critical."

The survey, conducted online in February 2024, involved 5,061 participants from a variety of demographic groups, representative of Australia's population.