The technology is being viewed as a profound ethical challenge, ranking just behind embryo experimentation, on the Governance Institute of Australia's 2025 Ethics Index.
The results showed there was growing public concern about the impact of AI on employment, decision-making and creative rights, the institute's policy and advocacy senior advisor Daniel Popovski said.
"Artificial intelligence is no longer viewed as a niche or emerging issue. It is now one of the most ethically complex challenges facing Australian society," he said.
"These findings underscore the urgent need for ethical governance frameworks that can keep pace with technological advancement."
Young Australians were leading the charge with their concerns about AI, as Gen Z showed the strongest negative swing towards corporate use of the technology.
Millennials were comparatively more positive about its use in the workplace.
Australians were most concerned about AI that involved deception, such as AI-generated content, while using the technology to assist medical diagnoses was most accepted.
Public concern for protecting the rights of creative professionals - including musicians, actors and artists - has intensified with a significant rise in those people calling it an urgent obligation.
Housing affordability and the cost of living were also among the top five ethical concerns.
"Housing affordability isn't just an economic challenge - it's a question of fairness, dignity and opportunity," Governance Institute chair Pauline Vamos said.
"When people can't access safe, secure housing, it undermines the foundations of community wellbeing and social trust."
Cost-of-living pressures remain the leading driver of ethical perceptions overall, with the rising cost of supermarket groceries highlighted as the most unethical and growing issue.
Affordability and cost pressures weigh especially heavily on younger Australians, who often face significant barriers to entering the housing market.
"When access to shelter becomes a privilege rather than a right, it's a failure of ethical leadership," Ms Vamos said.
"Australians are asking who is accountable, and what kind of society are we building?"
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