If Australian businesses want to lead the way in the AI era, they must lead with trust, and having a solid business identity must come first.
Here’s the lowdoan from AusBiz.
As Australian businesses invest in AI to improve customer experiences, many are hitting a major roadblock: when it comes to how their identity and personal data are being handled, customers don’t fully trust the technology.
Our latest research, the 2025 Customer Identity Trends Report, surveyed 6,750 consumers globally, including a deep dive into Australian attitudes. It reveals some hard truths: most Australians want to use AI, but on their terms. They expect transparency, control, and security, and right now, many aren’t seeing it.
Meet a pro who can shed more light…
“When it comes to personal data, more than half (54 per cent) of Australian consumers say they do not trust AI agents to handle it safely,” says Mike Reddie, Vice President and General Manager, Okta ANZ.
“This is a clear warning for any business deploying chatbots, digital assistants, or automated onboarding flows, if customers don’t trust your AI, they will not engage with it.”
The crux of the matter: identity is where trust begins
Trust doesn’t start with your product – it starts with a customer logging on to your website.
When customers create an account, the very first decision they make is based on how much they trust you to protect their information. If that experience is clunky or too intrusive, you risk losing a sale and turning potential customers away. Our report found that 74 per cent of people prioritise a company’s reputation and trustworthiness over product value when deciding whether to sign up.
And yet, even today, 67 per cent of Australians are reusing passwords across personal accounts, a practice that dramatically increases their risk of attack. This gap between habit and confidence reflects a core reality: people want security, but they also want simplicity.
Long or clunky signup processes cause 62 per cent of users to feel frustrated, and 25 per cent abandon purchases because of login issues. For Gen Z, that figure jumps to 36 per cent.
AI agents create new attack surfaces
As businesses start to embed AI agents into customer service, shopping, and onboarding experiences, a new challenge emerges: AI agents need identity too. They need to be authenticated, authorised, and monitored just like any human or machine user.
Without proper guardrails, these AI agents can inadvertently expose sensitive data, make unauthorised API calls, or be manipulated into performing actions outside their intended scope.
The attack surface is growing. Organisations must build strong identity and access controls into AI from the start: authentication, secure API gateways, granular permissions, and asynchronous user confirmation.
The path forward: Build trust by design
“Despite the challenges, there is reason for optimism. Australians are not anti-AI, they just want to know that it’s safe, secure, and transparent and this requires intentional design, ethical oversight, and clear communication with customers about how their data is protected and used,” Mike says.
“At Okta, we believe identity is the linchpin of this new digital trust framework. It connects people, and increasingly, agents, to the right resources, at the right time, with the right level of assurance. And it gives organisations the tools to deliver secure, seamless, and ethical AI experiences.
“If Australian businesses want to lead in the AI era, they must lead with trust. And that starts with getting identity right.”
Mike Reddie is Vice President and General Manager for Australia and New Zealand at Okta, the leading independent identity provider. With over 25 years in enterprise technology, Mike is passionate about helping organisations modernise security, improve digital experiences, and build trust in an increasingly connected world.