AI has consumers demanding faster, better and cheaper all at once

Australian businesses believe AI has convinced customers they can have faster service, lower prices and a broader range of options all at once, a demand once considered commercially impossible, according to Pitcher Partners’ Business Radar.

The report, which surveyed 316 middle market owners and leaders nationally, found six key customer expectations were rising due to AI or automation: faster service (71 per cent), better service (67 per cent), easier ways to deal with the business (66 per cent), a broader offering of services (66 per cent), more personalised services (63 per cent) and lower prices (63 per cent).
Pitcher Partners said businesses were being forced to rethink service delivery in real time to keep up.

“We are witnessing, in real time, the arrival of the AI-powered consumer,” said Chris Hanna, Partner, Pitcher Partners Adelaide.

“Consumers now have instant access to what feels like objective and expert insight, helping them research and compare options in seconds.

“Customers are far more informed before they reach out to businesses, making them more likely to question or negotiate quotes, fees and pricing, or ask for discounts.”

While AI has convinced customers that speed, quality and cost can all be optimised at once, business leaders warn the reality is far more complex.

“AI has fuelled the perception that there are traditional trade-offs that no longer exist, promising a world where speed, quality and price can all be optimised simultaneously,” said Joshua Haque, Director,

Pitcher Partners Perth, who warned many of the demands were unrealistic.

“Business leaders know the reality is far more complex.

“You cannot be a custom home builder and compete on cookie-cutter prices and delivery times.

“Middle-market businesses must explicitly decide what they are actually selling and have the confidence to walk away from customers demanding bargain-basement pricing.”

Despite the pressure, most businesses were resisting a race to the bottom on price.

When forced to prioritise one side of the speed, quality and price triangle, 56 per cent of businesses chose quality, while speed and price were nearly even at 13 per cent and 12 per cent, respectively.

“The middle market cannot afford to drift into a race to the bottom, said Gavin Debono, Partner, Pitcher Partners Melbourne.

In a market where everyone can access the same AI tools, quality, expertise and trust become even more important differentiators.”