top of page
Search

AI is Changing How Australia Handles Customer Complaints – and It’s Just the Beginning

  • Writer: Nick O'Halloran
    Nick O'Halloran
  • May 6
  • 3 min read
AI connected Australia

Artificial Intelligence is no longer a future concept—it’s firmly embedded in how Australian businesses manage customer complaints and service delivery. From chatbots to voice assistants and automated web tools, AI is lifting response times, reducing operational costs, and transforming frustrated customers into loyal ones.


And while automotive is an early adopter, it’s not the only sector accelerating AI uptake.



AI Adoption on the Rise Across Australia

Australian businesses are increasingly turning to AI to improve customer service, particularly around complaints resolution.

According to Local Digital, over 35% of companies are already using AI or automation tools, with that number rising to 60% in large businesses (500+ staff). Yet, 42% of small-to-medium enterprises still have no AI adoption plan, often citing confusion or lack of expertise.

In sectors where customer complaints are frequent—banking, healthcare, automotive, and retail — AI is emerging as a critical tool. A 2024 McKinsey report shows that AI usage in customer service functions grew from 72% to 78% year-on-year.



From Friction to Fix: AI in Complaint Management

Customer complaints are complex, emotional, and often time-sensitive. AI technologies—particularly those using machine learning and natural language processing—help brands detect dissatisfaction early, offer faster resolutions, and reduce the burden on human teams.


What does this look like in action?

  • AI-powered systems can now analyse sentiment in real time and triage complaints by urgency or legal risk.

  • Some tools automatically escalate recurring issues to human agents with full customer history.

  • AI can also predict churn risk, triggering proactive outreach when a complaint is lodged.


For customers, that means less waiting, more personalised responses, and higher trust in a brand’s ability to listen.




Voice AI on mobile

Voice AI, Chatbots and Website Integration

The evolution of AI in customer service isn’t just about chat—it's becoming truly multi-modal.


Voice AI

Voice-based AI assistants are on the rise, especially in sectors where customers are on the move—automotive, transport, construction, and logistics. These voice tools allow users to:

  • Report issues or lodge complaints hands-free

  • Ask follow-up questions or check complaint status

  • Receive real-time assistance without navigating complex menus

In automotive, systems like Ask Harry and others are transforming inbound calls, handling service bookings, recalls and complaints in natural language, with AI able to escalate or log issues automatically.


Chatbots

Chatbots are now ubiquitous, but their capabilities have matured. Today’s best bots:

  • Understand context and intent (not just keywords)

  • Can perform complaint logging, refunds, rebooking, and account lookup

  • Operate across Facebook Messenger, WhatsApp, SMS, and company apps

Some even remember customer preferences, and improve over time via machine learning.


AI-Enabled Website Interfaces

More Australian businesses are embedding AI directly into their websites. These tools offer:

  • Instant answers to FAQs (including complaint procedures)

  • Smart forms that auto-fill based on past user behaviour

  • Escalation tools that connect to human agents when AI confidence drops


Together, these tools create a consistent customer experience—regardless of how the complaint comes in.


Real-World Results: Automotive and Beyond

  • Automotive: Carsales, in partnership with Thoughtworks, rolled out AI-powered customer workflows to resolve service issues and manage complaints faster, while offering personalised support.

  • Healthcare: NIB’s virtual assistant “Nibby” reduced the load on their human customer support by 60%, saving over $22 million.

  • Banking: Commonwealth Bank's internal AI team helped reduce call wait times by 40% and cut scam-related complaints in half.

  • Retail: Coles now processes 10,000+ orders daily with AI and robotics at its Sydney fulfilment centre, reducing customer complaints about delivery delays and order accuracy.



Looking Ahead: The Opportunity and the Obligation

As adoption grows, businesses that use AI effectively can:

  • Respond to customer complaints faster and more empathetically

  • Reduce complaint volumes by preventing issues before they escalate

  • Gain insights from complaint patterns to improve service


But AI is not a silver bullet. Companies must invest in:

  • Training staff to work alongside AI

  • Ethical AI governance, including bias management and escalation protocols

  • Transparency, so customers know when they’re talking to a bot


The businesses that get this right will not only resolve more complaints—they’ll reduce them in the first place.


Sources:

Local Digital: AI and Automation Adoption Statistics in Australian Businesses (2025) https://www.localdigital.com.au/blog

Australian Government, Dept. of Industry: AI Adoption Trends https://www.industry.gov.au/news

McKinsey & Company: The State of AI in 2024 https://www.mckinsey.com

Desk365: AI in Customer Service Statistics (2024) https://www.desk365.io

Thoughtworks: Carsales Transforms with AI https://www.thoughtworks.com

The Australian: How NIB’s AI Saved $22m https://www.theaustralian.com.au

The Australian: CBA’s AI Push https://www.theaustralian.com.au

The Daily Telegraph: Coles’ AI Fulfilment Centre https://www.dailytelegraph.com.au

bottom of page