Is AI Replacing Real Connection? What Australian and New Zealand Small Business Owners (and parents!) Need to Know

TL;DR: As AI becomes a key business tool and an emotional sounding board for the next generation, it's time for small business owners to ask a bigger question: How do we use AI to enhance connection, not replace it? This post explores the unique risks and benefits for mature business owners and provides practical steps to keep the 'human' at the heart of your brand.

The "Over 45" Perspective: A Point of Difference

Remember the days when a new technology was a fax machine or a mobile phone the size of a brick (my dad had one that couldn't be used outside of the car!)? Remember listening to the sound as we connected to the internet using dial-up, and then your email getting STUCK because someone sent you an attachment that was too big and clogged your system?!!! We've seen technology evolve from a convenience to an absolute essential. However, the latest shift - the emotional and personal integration of AI - is really different.

Kids, the "Eliza Effect" and Adult Connection to AI

A recent report reveals that a quarter (26%) of vulnerable children who use AI chatbots would rather talk to a chatbot than a real person, and 23% use them because they don't have anyone else to talk to. I wrote about this on Facebook and some of the comments were really fascinating... you can read the Facebook post here. 

It's not just the kids. Adults are getting emotionally connected to AI, too.

For years, psychologists have studied a phenomenon called the "Eliza Effect," where people unconsciously project human emotions and understanding onto machines. It's named after Eliza, one of the very first chatbots from the 1960s. Today, with far more advanced AI, this effect is happening on a massive scale.

Recent research has shown that adults are using AI for everything from managing loneliness to seeking advice on personal issues. One recent survey found that more than a quarter of vulnerable young people would rather talk to a chatbot than a real person. and it's not just a trend; it's a profound shift in how we seek validation and connection.

The problem for us: AI is programmed to validate. It doesn't challenge us or offer a different perspective. This constant feedback loop can create an echo chamber, reinforcing irrational thoughts or isolating a person from real-world relationships. In extreme cases, this has been linked to concerning new behaviours and intense delusions some have dubbed "AI psychosis."

What This Means for Your Small Business

As a small business owner, you might be thinking, "That's an interesting problem, but how does it affect me?"

The same risks exist in business, just with different stakes.

An over-reliance on AI for your brand’s voice or messaging can create its own kind of "echo chamber." You might be getting the answers you want to hear - the quick, efficient, and perfectly-worded copy - but are you getting the customer insights you need to hear? A human-led, data-informed approach is always better.

When you use AI as a crutch rather than a tool, you risk replacing a meaningful connection with your audience. Your brand's voice becomes generic. Your customer service lacks empathy. The very thing that makes a small business successful - the personal touch - can be lost.

So, how do we use AI to enhance our connection with customers, not replace it?

Using AI for Connection: A Practical Guide for Your Business

AI adoption among Australian and New Zealand small businesses has reached a tipping point, with over 60% of small business owners already using AI. And for good reason, because it’s excellent for operational efficiency and improving customer experience. But the key is using it with intention.

1. Use it to Personalise, not Automate. An AI tool can help you segment your email list and craft a unique, personalised message for each group of customers. This makes them feel seen and valued, not just like another number.
2. Use it to Free Up Time for Empathy. Use a chatbot to answer FAQs and handle routine queries. This frees you and your team up to handle complex issues and customer problems that genuinely require empathy, problem-solving, and a human touch.
3. Use it for a First Draft, then Add Your Story. Use AI to write a blog post outline or a social media caption, but then add your own unique voice and personal story. Your audience wants to hear from you, not a machine.
4. Know Your Boundaries. Just as you’d set rules for your kids, set clear guidelines for your team. Let your team or VA know what's okay (and not okay) when it comes to AI-generated content. Your brand's integrity and unique voice are non-negotiable.

The New Zealand & Australian Context

AI is powerful, but it's not a free-for-all. As a business owner, it's crucial to be aware of the ethical and legal frameworks in your region.

• Check your tools' data compliance. If you're using an AI tool that collects customer data, ensure it complies with local privacy laws.
• Familiarise yourself with the ethics frameworks. In Australia, that’s the AI Ethics Principles, a voluntary framework developed by the government and the CSIRO to guide responsible AI use. For our Kiwi friends, it’s the Trustworthy AI in Aotearoa Principles and the Algorithm Charter for Aotearoa NZ. These frameworks aren’t just for big businesses; they’re a guide for all of us.

Thoughts from Kylie

AI is here. It’s powerful. It’s wildly useful. OMGoodness, I'm using it in my business to be more efficient in multiple ways, every day, and I'm also teaching others how to use it better. But it's not magic (although sometimes it can feel like it is!), and it's not human.

As business owners and parents, we've lived through massive technological shifts. The key has always been to stay curious, cautious, and, most importantly, connected. Let’s not lose our humanity in the quest for efficiency.

Want to learn how to use AI safely and ethically in your business?

Join my upcoming (Ethical) AI Made Simple workshop (sign up to my email list to be the first to hear when it's on!) or jump straight into our SHINE Online community, it's the friendliest membership in town, and I support you every step of the way in your AI journey! Find out more about SHINE Online here. 

Let's stay connected and stay human in a digital world. 

Some important FAQs 

What AI apps are kids using?
Popular tools include general-purpose chatbots like ChatGPT and Google Gemini, social media AIs like Snapchat's My AI, and specialised tools like Character.AI. Some are also using educational apps like Khan Academy Kids, and emotional support tools like Wysa or Calm Kids, which are designed for specific needs.

How can I talk to my kids about AI safely?
Start by explaining that AI is a tool, not a human or a magical being. Use real-life examples they already know, like Netflix recommendations or Siri. Teach them to question the information they get from AI, fact-check with credible sources, and understand that AI does not have feelings or a moral compass.

How can I teach my kids to question and fact-check what AI says?

Teaching media literacy is essential. Here are some simple strategies:

• The "Three Source Rule": Teach your child that they should never trust information unless they can find it in at least three different, credible places. For us, that might mean checking a story on ABC News, the Sydney Morning Herald, or The Guardian. For our Kiwi friends, that could be RNZ or the NZ Herald.
• Play "AI Detective": Make a game out of it. Ask your child to spot clues that something might be fake. Look for things like hands in AI-generated images that look distorted, overly polished or repetitive language in text, or facts that just don't feel right.
• Use Reverse Image Search: Show your kids how to use tools like Google Lens to trace an image back to its original source. This is a powerful way to spot deepfakes and manipulated images.
• Model the Behaviour Yourself: When you use AI, vocalise your thought process. Say things like, "Hmm, that's an interesting answer. I'm going to quickly check that on the AAP FactCheck website to be sure." This shows them that even adults don't blindly trust everything they see.

Is it safe for kids to use AI tools?
Not really! At least, not without supervision and conversation. Many AI tools are not built with child safety in mind and may provide unfiltered information, reinforce negative thinking, or even suggest dangerous content. It's crucial for parents to set clear boundaries and have ongoing conversations about what is appropriate.

How can parents and small business owners use AI safely?
Set clear boundaries for yourself and your team (at work) and your kids (at home). For business, review everything an AI generates before publishing it and ensure your tools are trained on ethical data. For your kids, supervise their use, enable parental controls where possible, and, most importantly, keep the human touch central to all interactions.

How can I use AI to help my small business?
Use AI as a tool for efficiency, not a replacement for human connection. AI can help with tasks like drafting social media posts, generating email marketing ideas, or providing quick customer support. This frees you up to focus on the human parts of your business: building relationships, providing personalised service, and leading with empathy.

How can I help my child if they're relying on AI for emotional support?
The most important thing is to keep the lines of communication open. If you notice your child turning to AI for support, ask them why. Explain that while AI can be a fun companion, it lacks the true emotional intelligence and lived experience of a human being. Encourage them to share their feelings with a trusted adult, like a family member, school counsellor, or a professional.