Australia’s online landscape and specifically its digital divide is evolving rapidly, with the new RMIT report showing that while more people are becoming connected and confident online, key inequalities remain.
The latest findings from the Australian Digital Inclusion Index (published by RMIT) reveal that the rise of generative AI (GenAI) tools is reshaping how Australians engage with technology and in some cases, widening existing digital gaps.
The report found that almost half of Australians, overall 46%, have recently used GenAI technologies such as chatbots, image creators, and text generators. This marks a significant cultural shift, as the adoption of AI becomes more widespread across daily life, education, and work. Among all groups, university and school students were the most active users, with a striking 79% reporting recent engagement with GenAI. Young adults aged 18 to 34 followed closely, with 69% saying they have used these tools.
However, the motivation behind GenAI use differs widely across the country. Australians living in remote or rural areas were twice as likely as city residents to use AI chatbots for social interaction or companionship. This reflects both a creative use of new technology and a continuing challenge of social isolation outside urban centers.
Language diversity also plays an important role in how Australians engage with GenAI. The study found that 59% of people who speak a language other than English at home have used GenAI tools compared with 41% of English-only speakers. This difference is likely linked to advances in AI-driven translation and text generation capabilities that make digital participation more inclusive for multilingual users.
Australian Digital Inclusion Index: Digital Divide Narrows
The Index also highlighted the growing role of GenAI for Australians with disability. Roughly one-third of respondents with disabilities reported using AI tools, often for entertainment, advice, and accessible learning support.
Professor Julian Thomas, Chief Investigator at RMIT University, said, “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”. Thomas also added, “People with lower digital skills may be less likely to benefit from AI, while being more exposed to risks such as scams, misleading content, and invasive data practices,” he explained. “As technologies like GenAI and new security tools evolve quickly, people need to keep refreshing their digital skills to stay current.”
The Australian Digital Inclusion Index, a collaboration between the ARC Centre of Excellence for Automated Decision-Making and Society, RMIT University, Swinburne University of Technology, and Telstra, measures Australians’ ability to access and use digital technologies, focusing on three key areas: access, affordability, and digital ability.
Nationally, Australians’ digital skills and confidence improved between 2023 and 2025, with the Index rising 8.7 points. The most substantial gains were seen among people aged 75 and over, and among those without secondary education. These findings indicate encouraging progress among groups traditionally most at risk of digital exclusion.
Still, about one in five Australians continue to face significant barriers to fully accessing, affording, and benefiting from digital technologies. Chief Investigator Professor Anthony McCosker from Swinburne University said the findings underline ongoing inequality. “Digital exclusion remains a major challenge, particularly for older Australians, those in remote communities, and people experiencing social and economic disadvantage,” he added. “It’s more than just an inconvenience; digital exclusion cuts people off from vital services and opportunities in education, work, and health.”
RMIT Report: Inequality Persists In Rural and Vulnerable Communities
Geographically, digital inclusion remains uneven. Residents of Tasmania, South Australia, Queensland, and the Northern Territory scored below the national average, with regional and remote areas lagging far behind inner-metropolitan zones. First Nations Australians, people in public housing, and low-income households continue to face affordability barriers, with a 13-point gap between First Nations people and the rest of the population.
Telstra Chief Sustainability Officer Justine Rowe said the company will use the Index’s findings to guide targeted investment and community support. “Closing Australia’s digital divide is a focus for Telstra’s Connected Future 30 strategy,” she said. “We’ve committed to supporting the digital inclusion of one million people by FY2030, with at least 200,000 of those in the Northern Territory, South Australia, or Tasmania.”
As Australia’s digital transformation accelerates, the findings highlight a crucial challenge: ensuring that the benefits of GenAI and digital connectivity are shared fairly across all communities. Further data on the digital experiences of First Nations Australians will be released in December, offering deeper insights into how to bridge one of the country’s most persistent digital divides.
