Digital divide narrows but gaps remain for Australians as GenAI use surges

The Australian Digital Inclusion Index has found almost half of Australians recently used generative AI tools, raising new opportunities and challenges for digital inclusion.

Usage was highest among students, with 79% reporting recent use, while 69% of Aussies aged 18 to 34 have also engaged with GenAI.

Overall, 46% of Australians reported recently using GenAI.

People living in remote areas were twice as likely to use AI chatbots for social connections or conversations than those in metropolitan areas.

Australians who speak a language other than English at home were more likely to use GenAI, 59% compared to 41% of English-only speakers, likely due to advances in AI-powered translation.

About a third of people with disabilities have used GenAI, with strong use of these technologies among this group for entertainment and advice.

The study’s Chief Investigator, Distinguished Professor Julian Thomas from RMIT University, said GenAI was creating new digital divides but also presenting fresh opportunities.

“GenAI has the potential to deliver significant benefits for everyone, but its impact will be greatest if it’s implemented fairly and no one is left behind in the digital transformation,” he said.

“People with lower digital skills may be less likely to benefit from AI, while being more exposed to new risks such as scams, misleading content and invasive data practices.

“As technologies like GenAI and new security tools evolve quickly, people need to keep refreshing their digital skills to stay current.”

The most common uses for GenAI were generating text, creating images and creating programming code.

Access and skills improving but persistent barriers remain

The Australian Digital Inclusion Index measures how Australians access and use digital technologies, factoring in digital skills and affordability.

It’s a collaboration between the ARC Center of Excellence for Automated Decision-Making and Society, RMIT University, Swinburne University of Technology and Telstra.

Australians’ overall skills and confidence to use digital technologies strengthened, rising 8.7 points between 2023 and 2025 to 73.6.

The largest gains were among people aged 75 and over, whose digital ability increased from 23.3 to 41.5, and among those without secondary education, rising from 38.5 to 54.4.

While the findings suggest digital inclusion is improving, about one in five Australians still struggle to fully access, afford and use technology.

Chief Investigator Professor Anthony McCosker from Swinburne said the report showed major gaps between Australians who can fully participate in the digital economy and those being left behind.

“Digital exclusion remains a big challenge, particularly for older Australians, those in remote communities and people experiencing social and economic disadvantage,” he said.

It’s more than just an inconvenience; digital exclusion cuts people off from vital services and opportunities in education, work and health.

Regional Australia still lags cities in digital inclusion

The most digitally excluded were older people, those facing social or economic disadvantage and First Nations Australians.

Gaps between those in capital cities and the rest of Australia remain significant, with digital inclusion scores trending downward with remoteness.

Access, affordability and digital ability scores were below the national average in Tasmania, South Australia and Queensland, while Northern Territory residents faced significant access challenges.

Telstra Chief Sustainability Officer Justine Rowe said the company would use the evidence in the Index to target support where it can have the greatest impact.

“Closing Australia’s digital divide is a focus for Telstra’s Connected Future 30 strategy and we commit to supporting the digital inclusion of 1 million people by FY2030, with at least 200,000 in the Northern Territory, South Australia or Tasmania where there continue to be significant digital inclusion challenges,” she said.

Across Australia, inner-metropolitan areas had the highest levels of digital inclusion, while remote and very remote local government areas had the lowest scores.

The study found many low-income households were unable to afford a home internet connection, leaving them reliant on pre-paid mobile as their main, and often only, way to get online.

Public housing residents, people without secondary education and people with disability faced the greatest challenges in paying for digital services.

There was a significant affordability gap of 13 points between First Nations people and other Australians.

More data specific to mapping the digital gap for First Nations Australians is expected to be released by the ARC Center of Excellence for Automated Decision-Making and Society in December.