Integrating large language models (LLMs) like OpenAI’s ChatGPT into the workplace heralds a new era of productivity and efficiency for organisations, with its unparalleled ability to streamline communication and automate tasks. The pros are obvious – accelerated response times, improved customer interactions, and enhanced collaboration. However, the increased adoption of LLMs raises serious ethical challenges and concerns, particularly regarding potential ChatGPT bias. As products of the data they are built on, LLMs like ChatGPT can inadvertently perpetuate existing biases and exacerbate inequality.

Striking a balance between the pros and cons of artificial intelligence (AI) is becoming increasingly important as organisations navigate the evolving landscape of automating functions in the workplace. Addressing these complexities is essential to harness the full potential of AI while ensuring fair and unbiased outcomes for society as a whole. Increasingly, research provides evidence to support new strategies for how organisations can and should integrate AI into their decision-making processes.

To address this challenge, Sam Kirshner, an Associate Professor in the School of Information Systems and Technology Management (ISTM) at UNSW Business School, recently investigated the intersection of ChatGPT and Construal Level Theory (CLT), focusing on how the AI chatbots’ level of abstraction influences product recommendations. His paper, GPT and CLT: The Impact of ChatGPT’s Level of Abstraction on Consumer Recommendations, reveals a discernible ChatGPT bias.

What are AI systems like ChatGPT doing when they distinguish between datasets?

Construal level theory explains how humans think about and process events. A “high-level” construal involves focusing on the big picture or abstract features, while a “low-level” construal entails paying attention to specific details, akin to seeing the forest (abstract features) or the trees (specific details). In his study, A/Prof. Kirshner explores this concept by comparing humans’ decisions with ChatGPT’s. Interestingly, he discovers an “abstraction bias” in ChatGPT, where the bot consistently interprets information at a higher construal level than humans, directly influencing its recommendations.

A/Prof. Kirshner’s past research examines construal level theory to explain decision-making in inventory management and following natural disasters. In his latest study, A/Prof. Kirshner asked GPT-4 several buyer and seller-related questions repeatedly and recorded the answers. His findings show that ChatGPT’s bias prioritised desirability over feasibility, which potentially has significant implications for generative algorithms and their use across e-commerce. And as AI (especially language models) becomes more prevalent in offering recommendations, A/Prof. Kirshner says consumer behaviour may shift, influencing product choices, reviews, and market transactions.

“As recommendations and choices can hinge on the advisor or decision makers’ construal level, and as LLMs will be increasingly relied on for advice and decisions, my research investigates whether ChatGPT systematically adopts a high or low-level construal or is fluid like humans,” says A/Prof. Kirshner. “For people, construal levels are fluid. We (people) often recognise which level of detail – the trees or the forest – is appropriate for specific situations and adopt our mindset accordingly. However, other times, our environment influences our construal levels, and we make suboptimal decisions,” he explains.

Understanding ChatGPT bias

Consumer behaviour may change as AI, particularly language models like ChatGPT, gains prominence in providing recommendations. The decisions made by AI may diverge from those made by humans, who adapt their construal levels (ability to focus on abstract or concrete details) based on a unique situation.

A/Prof. Kirshner explains: “A fundamental way to measure whether people behave abstractly or concretely is to measure behaviours interpreted abstractly (often focusing on the why) versus concretely (often focusing on the how). For example, ‘eating an apple’ can be described concretely as ‘chewing and swallowing’ or abstractly, ‘as getting nutrition’. Similarly, ‘making a list’ can be described as ‘writing things down’ or ‘getting organised’. Using this type of measurement on ChatGPT consistently shows that ChatGPT represents these behaviours at a high rather than a low-level construal.”

So, what exactly is abstraction bias? “I call GPT’s overall preference an ‘abstraction bias’. If it interprets information abstractly, it will make recommendations and decisions in consumer scenarios that differ from people since we (people) are more fluid in our construal level and are more impacted by the scenario,” he says. “Thus, in scenarios where, because of our roles, we will make different decisions because we adopt either more of a high-level or low-level construal, different decisions could emerge because AI will only take on a high-level construal.”

As another example, A/Prof. Kirshner describes preparing for a wedding. “After finding out that your friend is getting married and setting the wedding date to be a year away, thoughts about the wedding will typically be abstract and high-level: Am I in the wedding party? Who else will be there? Will it be a destination wedding? Will it be secular or religious?

“But, when the wedding is a day away, thoughts will be consistent with a low-level construal: Am I taking an Uber or getting a lift? When will I write the card? Is my attire wrinkle-free? Did I choose the vegetarian or fish option for dinner?”

How might this show up in the workplace? “Interestingly, these differences in concrete versus abstract representations impact how we evaluate information within scenarios, substantially impacting our decision-making in our personal (e.g., as consumers) and professional lives,” A/Prof. Kirshner explains.

“Imagine giving a presentation to discuss your company’s strategy. If it’s a 6-month strategy, the focus will be more detail-oriented than a 5-year strategy. Similarly, if you are in a small team of 10 people (who you likely know quite well), the level of detail in your speech will be drastically different than if you were speaking to 1000 people,” he says.

Here’s another case study. Imagine deciding between buying two laptops: one with state-of-the-art performance, which is heavy and inconvenient to carry around, and another laptop with half the specs and is less powerful but super lightweight. According to A/Prof. Kirshner, when adopting a high-level construction, we are more concerned with why you need a computer for its ability to do tasks, i.e., its performance. So, desirability features are usually consistent with the why. On the other hand, a low-level construal prioritises the how (i.e., the feasibility). 

A/Prof. Kirshner explains: “If I use the laptop, I need to think about how I want to use it at cafes, work, travel, etc. This differs from a seller selling this product to thousands of people and is, thus, farther away psychologically from using the computer. So, they are less likely to think about low-construal level features. Because ChatGPT systematically adopts a high-level construal, it will provide advice that prioritises the desirability features.

“ChatGPT will recommend that a seller price the laptop with higher performance as more expensive than the lighter one. This is consistent with how sellers behave. However, ChatGPT differs in its recommendation for buyers, where it will also say that you should pay substantially more for a high-performance laptop than a lightweight and convenient one (which is where it differs from most people). Yet people are often unwilling to pay premium prices for high-powered tech products since cutting-edge products are usually less functionally convenient.”

How businesses can navigate AI technology

In practical terms, these findings underscore the importance for organisations to be cognisant of and address the ethical challenges associated with bias in AI tools like ChatGPT and other machine learning models.

According to A/Prof. Kirshner, the first step is awareness of AI’s bias and the role of construal levels in decision-making. From there, it is important to determine the optimal construal level for a decision and ensure ChatGPT’s decisions and recommendations are consistent.

Past research suggests decision-makers should consciously manage shifts between broad and detailed perspectives to align their current construal with the demands of each decision, optimising goal attainment. Regulators and businesses alike should understand these nuances when implementing policy changes in the future.

A/Prof. Kirshner explains: “As construal level is influential in how we behave, an exciting area of research is to make construals within AI more fluid – and exploring whether people are better off being influenced by construals or trying to uncover which construals lead to the best outcomes with scenarios, and training LLMs to recognise “optimal construals” and make recommendations accordingly.

“Who knows – in the future, we may have agents making decisions and purchases on our behalf, and they could interact with the firm’s LLM agents. As principles of construal level theory also readily apply to negotiations (e.g., focus on primary issues versus secondary issues and on the why vs the how), this could also have huge impacts on what products and services we consume,” he says.

Twelve South has announced a revamp to the BookArc, a vertical laptop stand that helps to maximise space on your desk without sacrificing aesthetics. BookArc helped solidify Twelve South’s foundations, today becoming even stronger with the unveiling of BookArc Flex.
BookArc Flex is a stunningly beautiful vertical MacBook stand that holds your MacBook while connected to a monitor. BookArc Flex cradles the Mac you have now and in the future by automatically adjusting to any size MacBook up to 1 inch thick without additional inserts.

Create a comfortable, powerful desktop setup.

Spend a lot of time at a desk with your laptop? Use BookArc to turn your laptop into a powerful mini desktop. This tiny stand makes room for a full-size keyboard, mouse and external monitor, improving comfort and productivity. Taking your laptop to a meeting or home for the night is as simple as unplugging it and lifting it out of BookArc Flex.

Small desk? Big monitor? No problem.

By holding your MacBook vertically, BookArc frees up space for that big display you’ve been dreaming of. You can even slide BookArc Flex and your MacBook behind your monitor to save even more space. Need to take your MacBook on the road? Just unplug it and go.

Minimal design for maximum focus.

Perhaps the real beauty of BookArc Flex is that it allows you to use one large display. Whether you’re editing a video, writing a blog post, or diving deep into a Numbers sheet, having one big screen helps you laser focus on the project. Using your MacBook in Closed Display Mode is a thing of beauty in itself.

Future-proof design.

BookArc Flex is designed to hold your MacBook or laptop without additional adjustments or extra inserts (compatible with most laptops with screens up to 16″ and less than 1 inch thick). So this stand will hold the laptop you own now and the laptop you’ll upgrade to next year. How sweet is that?

BookArc Flex from Humble Beginnings:

The original BookArc was introduced back in 2009, creating a vertical stand category with it. Becoming a staple product from the brand, many of the desk setup shots on social media and roundups feature a BookArc. With design being the main differentiator on the market, modern architecture served as inspiration, with the final product now reflecting elegance whilst remaining a minimalist piece of art.
BookArc Flex will be available shortly on twelvesouth.com.au for AUD$79.95 (Black and White) and AUD$99.95 (Chrome). Retail availability is expected to expand in the coming months.

McAfee Corp., a global leader in online protection, today announced findings from their Global Small Business Study which surveyed the owners and IT decision makers at across six countries to discover their thoughts and behaviour around small businesses cybersecurity.

The study, conducted in collaboration with Dell Technologies, reveals cybersecurity is one of the greatest concerns of small businesses in Australia, with 71% of organisations saying it is one of their biggest risks or vulnerabilities. And these fears are justified. The data shows that cyberattacks are on the rise, as 48% of small businesses have experienced a cyberattack, and 14% have experienced more than one. For 54% of the organisations that experienced a cyberattack, the incident occurred in the last two years, indicating that the threat of cybercrime has become more prevalent.

For a small business, even a single cyber incident can be devastating to the bottom line. For small business owners who experienced a cyberattack, 64% lost more than $10,000 dealing with the attack. In addition, more than half (54%) of the business owners and IT decision makers indicated that the cyberattack on their business took a physical or mental toll on them and/or their staff or colleagues. In 68% of the cases, the business lost more than a week of valuable time dealing with IT issues due to the attack.

These cyberattacks have a significant impact on the finances, customer trust, and operating efficiency of small companies, causing customer data (42%), passwords (38%) or other files (29%) to be lost. Most of these attacks (56%) were caused by someone mistakenly downloading malware by clicking on a phishing link and/or opening a malicious attachment.

Unfortunately, small business owners are at a significant disadvantage when faced with malicious messages that are increasingly realistic and frequent thanks to artificial intelligence (AI). AI is a scammer’s favourite tool, helping cybercriminals increase the scale, speed and sophistication of phishing and text message scams.

To help reduce AI-related concerns and anxieties about data security, small business owners need AI to beat AI. This cutting-edge technology can work in their favour to proactively protect them in real-time before they even know they have been targeted. For example, the AI-driven technology behind McAfee’s McAfee Scam Protection, proactively blocks dangerous links that appear in text messages, social media, or web browsers and engage with text messages, read emails, and browse the web peacefully and securely.

Cybersecurity Support and Responsibilities

Many small business owners understand that cyber threats are something they need to plan for and invest in mitigating. Despite their awareness, only about a third (35%) of business owners/IT decision makers were very confident in the ability of their business to prevent cyberattacks. Most small businesses (57%) manage cybersecurity without the help of external expertise or resources and over a third (36%) said they focus on overall general IT issues more than 7 hours a week.

McAfee and Dell’s Global Small Business Study also found:

• Over a quarter (26%) of business owners worry about cyberattacks daily.
• Just over half (51%) of the business owners or IT decision makers are confident in employees’ ability to take necessary steps to protect company devices and IP.
• A majority (68%) of small business owners believe their cybersecurity risks are increasing.
• A fifth (21%) of the small businesses that experienced cyberattacks reported the attacks occurred due to a vulnerability in outdated or unpatched software that was breached.

Resources for Small Businesses’ Digital Defence

In an increasingly complex online world, the need for resources and products to help keep small business owners and their employees informed and protected online has never been greater.

McAfee’s Business Protection is a comprehensive security solution built specifically for small business owners to ensure comprehensive protection for employees, data, devices, and online connections. Launched in collaboration with Dell Technologies last year, the software helps small business customers stay ahead of cyber threats and vulnerabilities with award-winning security, identity monitoring on the dark web, VPN, web protection for safe browsing, and more. In addition to the security features McAfee Business Protection has also been designed to be extremely intuitive and is easy to use with automated protections, timely alerts, and simple user interface.

“We understand the vulnerabilities and risks small business owners face, and we’re committed to providing them industry leading online protection solutions that let them do what they do best and let us do what we do best – protect you, your data, and your customers,” said with Tyler McGee, Head of Sales APAC.

In addition, to help educate small business professionals about the growing cyber threat landscape, and to arm them with tips to keep their data, employees, customers and livelihoods safe, McAfee and Dell have prepared a free small business resource guide.

In the tech unicorn’s latest venture, HR, payroll, and employee engagement platform Employment Hero has partnered with Sage – leading provider of accounting and financial management solution for small and mid-sized businesses (SMBs) to provide Australian SMEs with a seamless integration of HR and financial services.

The collaboration between Employment Hero, bringing expertise in payroll, HR, and employment compliance, and Sage’s cloud-based accounting software, Sage Intacct, will provide Australian SMEs with a straightforward solution to navigate and adhere to intricate and constantly evolving employment, tax, and payroll regulations.

Sage Intacct the award-winning accounting, and finance cloud solution, provides comprehensive visibility into operational and financial aspects of a business, leading to improved automation, increased profitability, and enhanced customer satisfaction.

By integrating with Employment Hero, Sage Intacct will seamlessly unify payroll, HR, and financial systems, ensuring accurate and compliant processing of payroll procedures in accordance with Australian employment regulations.

Ben Thompson, Founder and CEO of Employment Hero said: “For most industries in Australia, keeping up with the complexities of employment regulation can be difficult, especially regarding payroll. This is particularly challenging for SMEs who are already overstretched and lack the expertise to be aware of all compliance protocols. Employment Hero’s integration with Sage Intacct will be fundamental to supporting Australian SMEs by giving them an easy, clear way to engage with and comply with extensive employment regulations.”

“This includes giving SMEs access to services, via Sage Intacct, that ensure they are adhering to the correct interpretation of all pay conditions, accurate classifications of employees (taking into account the type of work performed during every shift), collecting true time and attendance data and processing this data with the correct pay calculations, pay slips, and correct PAYG tax and superannuation calculations.”

We’re excited to work with the Sage Intacct team to offer better services and streamlined processes for businesses.”                                

This integration will enable Sage Intacct users to access premium Employment Hero features, such as employee self-service, onboarding, rostering, time and attendance, and leave management – all tracked and accessed by the press of a button.

Dedicated to streamlining payroll and financial processes for SMEs, the collaboration between Employment Hero and Sage empowers them to effortlessly synchronize information directly with their Sage Intacct account. This includes importing charts of accounts and tax codes, assigning classes and departments to specific locations, and exporting journals populated with pertinent payroll details.

Tom Gough, Country Manager for Sage Australia/ New Zealand, says: “Sage Intacct empowers users to make tailored choices for their business, seamlessly connected to a diverse digital marketplace with integrations facilitating the consolidation of financial data into a centralized location. Through the collaboration with Employment Hero, we leverage our respective expertise to streamline business processes, ensuring smooth data flow between HR and payroll systems and minimizing the need for redundant data entry and potential errors.

Employment Hero’s proficiency in Australian employment law becomes a vital asset and the integration will assist businesses to consistently adhere to the latest tax, payroll, and employment legislation, particularly intricate in Australia.”

D-Link ANZ has launched its new AQUILA PRO AI M30 AX3000 Dual-Band Wi-Fi 6 Mesh Systems. These cutting-edge Mesh Systems, available as both a 2-Pack and 3-Pack, are engineered to address the three most common pain points of Wi-Fi users: coverage, speed, and usability. Featuring built-in AI technology, the AQUILA PRO M30 Wi-Fi 6 Mesh Systems are set to revolutionise the home networking experience. The AQUILA PRO AI M30 has also won a prestigious 2023 Good Design Award.

Drawing inspiration from the Aquila constellation (Latin for eagle), the M30’s design concept is a unique evolution of traditional router design. The AQUILA PRO AI M30 boasts an elegant, wall-mountable design to seamlessly blend with any decor and its five upgraded internal antennas provide wider, more spherical coverage, making the M30 an ideal centrepiece for any connected home.

As part of “D-Link Green”, D-Link’s long-running environmental initiative, the AQUILA PRO AI M30 closely adheres to green design principles. The chassis is made from post-consumer recycled (PCR) material, promoting environmental sustainability. The packaging uses 99% natural plant-based Mineral Oil Free (MOF) ink and the gift box design reduces printing ink usage by over 55%. The M30 also leverages the Wi-Fi 6 Target Wake Time (TWT) feature to reduce power consumption and offers a health mode that automatically turns the router into an ultra-low power standby mode during the night ensuring energy efficiency.

Compatible with Amazon Alexa and Google Assistant voice control, users can effortlessly manage their smart home. The AQUILA PRO AI M30 masterfully combines aesthetics and functionality, providing a hassle-free Wi-Fi solution that delivers seamless connectivity, lightning-fast speeds, and high levels of usability across your home network.

The AQUILA PRO AI M30 Wi-Fi Mesh Systems use a special antenna array designed to extend a stronger Wi-Fi signal, boosting spherical coverage and eliminating dead zones. The 2-Pack M30 Wi-Fi- Mesh System covers a home up to 465 square metres, whilst the 3-Pack M30 Wi-Fi Mesh System covers up to 650 square metres, delivering seamless Wi-Fi connectivity for more devices throughout your home.

Powered by Wi-Fi 6 technology, the AQUILA PRO AI M30 delivers extreme speeds of up to 3Gbps, supporting 160MHz bandwidth, along with a Gigabit Internet WAN port and four Gigabit LAN ports supporting wired devices such as smart TVs, gaming consoles, and PCs. As a result, the M30 ensures ultra-fast Wi-Fi or Wired connections, even when the entire family is online.

The AQUILA PRO AI M30 employs innovative AI technology, including an AI Wi-Fi Optimiser, AI Mesh Optimiser and AI Traffic Optimiser to ensure superior Wi-Fi performance for all your devices. The AI Wi-Fi Optimiser selects the optimal channel for each connected device, minimising interference, whilst the AI Mesh Optimiser provides fast and reliable network coverage using auto path selection and self-healing capabilities. AI Traffic Optimiser guarantees uninterrupted 4K/8K video streaming and video calling with AI-based QoS technology, ensuring a seamless and uninterrupted experience.

The AQUILA PRO AI M30 complies with the latest WPA3 encryption and IEC 62443-4-1 standards, safeguarding your network against unauthorised access. It also offers parental controls and separate guest networks to ensure the security of all home Wi-Fi devices.

AQUILA PRO AI M30 systems are designed to enable you to effortlessly set up your Wi-Fi network and manage it with the intuitive AQUILA PRO AI App. The AI Assistant monitors network performance and provides weekly reports, even when you are away from home, making it a hassle-free and convenient experience.

Aquila Pro M30 AX3000 Wi-Fi 6 Mesh Systems key features

• Eco-friendly Design: With a housing made from post-consumer recycled materials and delivered in sustainable packaging, the M30 was designed to reduce its environmental impact

• Refined Aesthetics: Boasting an eagle-inspired form and a unique feather-patterned ventilation design, the M30 seamlessly complements any home décor

• Rapid Connectivity: Revel in speeds up to 3Gbps with an extra antenna on the faster 5GHz band, assuring seamless video streaming, video conferencing, and smooth gaming

• Uninterrupted Wi-Fi Everywhere: Enjoy robust 360° spherical coverage courtesy of a sophisticated antenna design and advanced AI technology, ensuring fast and consistent Wi-Fi in every corner of your home

• Scale-as-you-need Mesh: Futureproof your network and easily expand your coverage by adding more AQUILA PRO AI devices to create a whole home Mesh network

• Ultra-Fast Gigabit Wired Connections: 1 × Gigabit WAN port plus 4 × Gigabit LAN ports allow you to make fast and reliable connections to wired devices like smart TVs, gaming PCs and more

• Help Protect Your Home Network: Help keep your family safer online with our premium home network security features like Advanced Parental Controls, ETSI EN 303 645 cybersecurity certification and WPA3 encryption

• Simplified Setup and Management: The intuitive AQUILA PRO AI app helps guide you through setup and monitors your network to help you keep it running at peak performance

The AQUILA PRO AI M30 Wi-Fi Mesh Systems are available in Australia now from www.dlink.com.au as either a 2-Pack (RRP AUD$399.95) or 3-Pack (RRP AUD$549.95) and from all authorised D-Link partners and retailers.

Reviewing Employment Hero’s SME Index data, the economy is likely to cool as we head into 2024 and a small recession may even be on the cards, which will impact SMEs in multiple ways.

Still, in the ever-evolving world of business, small businesses are set to defy expectations and make their mark in 2024. 

Ben Thompson, CEO and Founder of Employment Hero, said, “Small businesses – where they’re able to – will need to focus on maintaining growth and sharpening their competitive advantages. Beyond revenue generation, there will also be pressure to cultivate a productive and engaged workforce. This might be a lot for business owners and managers to consider but with the right planning and technology by their side, they can give themselves an advantage over larger competitors in the coming months.”

While the possibility of an economic downturn often means bad news for small businesses in Australia, Mr. Thompson believes that there are ways for business owners to gain a competitive edge in this challenging climate.

For instance, small businesses are breaking through barriers with the help of technology. AI technology is becoming more widely used among these employers, a trend we will likely see continue into 2024. According to Thompson, AI will increase productivity across SMEs and will allow employees to focus their attention on more strategic tasks. 

“Automating repetitive administrative tasks allows businesses to free up time and resources better spent elsewhere; this is especially impactful for smaller teams where every minute counts. As the burden of admin reduces, teams can dedicate more time to innovation, customer service, and strategy – all vital components of competitiveness.

“A robust employee engagement platform can help small businesses establish a solid organisational culture that boosts morale and increases retention. A well-engaged workforce is more productive, creative, and loyal, attracting new talent and ensuring employees aren’t looking elsewhere for work with bigger businesses,” Mr Thompson continued.

Recognising the importance of a skilled workforce, small businesses are also investing heavily in recruitment and development. In 2024, these enterprises are ensuring they have the right employees and that they have all the tools they need to succeed. 

Thompson says that if small businesses put their best foot forward, they could have an advantage over larger businesses when hiring. “While small businesses face recruitment budget constraints against larger companies, strategically showcasing strengths like culture, flexibility, and growth can help them compete effectively. SMEs also boast a faster hiring process, with 48 per cent filling a position in under ten days, compared to the industry average of 30 days. It’s important to highlight to candidates in this process that they can be a ‘big fish in a small pond’ whose achievements directly impact the business.

Advancements in AI are also seeing hiring tools become more available and affordable to SMEs to help level the playing field. 

Mr Thompson said: “The use of AI-enabled hiring tools can not only better match employees and employers but also do it much quicker. Something we’re helping our customers to achieve with our SmartMatch service. This helps to ensure SMEs land the very best talent quickly and efficiently. 

“Overall, small businesses should be confident in taking on larger competitors; they have ample opportunities to optimise their operations and gain a competitive advantage. Today’s digital technologies level the playing field, allowing smaller companies to rival their larger counterparts in efficiency and innovation.”

As we navigate 2024, small businesses are not just keeping pace; they’re thriving. Their successes speak to their resilience, innovation, and ability to rewrite the rules of business engagement in the modern era. The narrative is changing, and small enterprises have the potential to emerge as forces to be reckoned with in the business landscape. 

Retail predictions for 2024, more retailers will take steps to protect customers from security issues, while consumers will change their essential, discretionary and Christmas shopping habits to get more bang for their buck amid the tightening cost of living. 

These forecasts come from Richard Thame, CEO of parcel delivery service CouriersPlease, who has more than 20 years of leadership experience for Fastway Couriers, Aramex couriers, McDonalds, Greater Union Cinemas and Thrifty Car Rental. At CouriersPlease, which is owned by Singapore Post, Richard oversees a national network of more than 1200 couriers, 400-plus freight handlers and 18 major depots across 800+ franchise territories. 

Richard says: “Both retailers and consumers are already adjusting their habits in response to security issues, economic pressures and other influences. SMS scams and declining consumer trust is prompting retailers to find alternative communication methods, while economic pressures is seeing consumers shopping smarter and in line with sales calendars. Retailers have responded with longer, earlier sales events, a trend that could see Christmas shopping come even earlier this year. Subscriptions for essential items are also predicted to become more popular and widespread.

“More consumers understand the retail sales calendar and the types of discounts to expect and are holding off on spending until big sales events, while comparing prices between sales. They are being more economical: putting essential shopping items first, and they’re spreading out discretionary spending on things like Christmas gifts. Our depot was already extremely busy six weeks out from Christmas. In 2024, we will see more retailers responding to these emerging habits.”

Retail predictions for this year:

1. Retailers will ditch SMS delivery alerts amid rising scams. For the second year in a row, SMS is the most reported contact method scammers use^[1]. Richard says this will prompt retailers to shift delivery tracking notifications back to emails and apps to protect and reassure consumers. Richard said the shift was in line with trends that had unfolded overseas. “It’s very rare for consumers in advanced overseas economies to get a tracking link via SMS,” he said. “Clickable links on mobile devices will die off over the year, and people will go back to receiving advice via emails to get links that are easily verified, then it will move to apps.”
2. Subscription-based purchases for essential items will continue trending up. After soaring in popularity during pandemic lockdowns, automated subscriptions for items such as toilet paper, cleaning products, food and pet supplies will become more common and popular in 2024, regardless of a household’s economic vulnerability. Richard said the subscription model for essential items is relatively recession proof, with consumers appreciating the convenience of having these items arrive regularly on their doorstep with little-to-no effort. In 2023, consumers had reigned in spending on some discretionary items, with home furnishings, household equipment, alcohol and tobacco all seeing negative growth from July to September 2023^[2].  
3. Parcel pick-up and drop-off (PUDO) networks will take off. Through pandemic lockdowns, parcels were predominantly delivered direct to consumers’ homes. While hybrid working arrangements are now widespread, an increasing proportion of people that have been working remotely every day are returning to workplaces for at least part of the week. These shoppers will turn to PUDO points – networks of independent retailers such as petrol stations and pharmacies that accept parcel drop-offs and pick-ups – to collect their parcels after hours, especially during peak industry periods when employers require staff to be on site.
4. Consumers will align spending with retail sales calendars. Recent CouriersPlease research revealed that 91 per cent of shoppers changed their buying habits in 2023, with more than half of those surveyed holding off on purchases until sales periods. This trend will grow as consumers become more familiar with retail sales calendars, while the rising cost of living puts them under more pressure to shop economically. 
5. Online Christmas shopping to peak earlier. Richard says Christmas shopping will peak earlier, as more consumers plan ahead and rely on Click Frenzy and Black Friday sales to do their Christmas shopping event, making the two November sales bigger combined shopping event than Christmas. CouriersPlease’s own research found that half (52%) of online shoppers use sales events such as Black Friday and mid-season sales to do their Christmas shopping. The highest proportion was among under-50s (65% of all under-50s) and women (56% of all women). This year, CouriersPlease is expecting November to be its peak delivery month, not December. 
6. Major sales events will start earlier and run longer. The days of brief ‘click frenzy’ sales are on the way out as retailers adjust to changing consumer habits. Richard said stores such as Nick Scali had already extended their Black Friday sales across the full month of November, a move more retailers are likely to follow. CouriersPlease research showed that 2 in 3 shoppers held off spending in the weeks approaching Black Friday and Cyber Monday sales. 

Where do customers want to shop in 2024? Everywhere. But with growth comes fierce competition. To stand out, leading ecommerce expert, strategic advisor and global best-selling author, Paul Waddy, shares the most important trends reshaping the future of online and retail.

AI Will Find New Applications In Ecommerce
While generative AI has the talk of the town in 2023, new applications of machine learning and artificial intelligence will be a driving force in 2024. Advancements in AI technology will enable businesses to personalise customer experiences, improve systems and streamline operations through automation. Ecommerce brands can go a long way with AI-powered chat and content creation if the models are trained to codify and operationalise brand tone. This will lead to stronger conversations, an increased customer base, and more loyal customers.

It Pays To Go Green

Sustainability has become increasingly important in ecommerce and retail as consumers are more conscious of the environmental impact of their purchases. Brands need to support this by offering a wide range of sustainable options, providing transparent information about product sourcing and manufacturing processes, and promoting responsible consumption practices. Additional vital components include competitive logistics, shortening delivery times and reducing carbon emissions through efficient transportation and packaging methods. 

The Time For Retailers To Use Social Commerce Is Now
The global social commerce market size was US $0.62 trillion in 2021 and is predicted to reach US $7.03 trillion by 2030 – and as younger millennials and gen z continue to consume the market, that number is only going to grow with 83% of gen z consumers saying their shopping starts on social media. 

In 2024, major trends in social commerce include delivering seamless omnichannel commerce that lets consumers build their own buying journey, embracing authenticity when engaging with your audiences and taking a mobile-first approach to UX design.

Value Combats Inflation
Inflation was on everyone’s mind in 2023, and while consumers’ budgets tighten, they will likely curb online spending as a way to introduce barriers against impulse buys. But it bears mentioning that consumers aren’t halting all discretionary spending. Instead, they are being highly thoughtful and intentional about where, how, and on what they spend their hard-earned dollars. But value can mean a lot of things.

Retailers should continue to embrace the tried-and-true methods of easing shoppers’ anxieties. Such as offering easy returns and budget-friendly options, leveling up their focus on the ways they deliver value beyond cost-savings, providing reliable, predictable, top-tier service and rewarding loyalty with perks and bonuses customers’ actually want.

About Paul Waddy

Paul Waddy is an award-winning ecommerce executive and strategic advisor to some of the biggest brands in ecommerce. Paul is also the global best-selling author of Shopify for Dummies, which reached number 1 in the retail category in Amazon USA, and Selling Online for Dummies. Most recently, Paul turned his attention to helping small business scale to great heights with the launch of Learn Ecommerce, the digital platform that shares his proven strategies on how to build a profitable online business in under 90 days through on-demand courses.

Latest building approvals figures show new home builds continue to remain too low despite an uptick in higher density building.

Responding to data released by the Australian Bureau of Statistics, Master Builders Australia chief economist Shane Garrett said detached house building approvals slid by 1.9 per cent during November.

“Today’s figures mean that just 945,554 new homes have been approved across Australia over the past five years.

“Master Builders has forecast that 2023-24 will see around 170,100 new homes builds, well below the 240,000 needed per year to meet the 1.2 million housing accord targets.

“However, there was a modest 1.6 per cent increase in the overall number of new home builds approvals during November 2023 thanks to a 7.2 per cent gain in higher density approvals.

“More higher density building will help alleviate some of the pressure in the rental market which has seen big inflationary impacts in the economy.

“Labour market shortages, lack of shovel-ready development, planning delays and interest rate rises continue to be the biggest impediments to home building,” Mr Garrett said.

Master Builders Australia Deputy CEO Shaun Schmitke said: “With a new parliamentary year ahead of us, we hope at the top of all government action lists is how to reduce the time and cost pressures around home building.

“We know the cost of living crisis is currently being exacerbated by stubborn inflationary impacts in housing.

“Any decision taken by Government needs to consider closely the impact it will have on the cost of doing business.

“This is why Master Builders remains deeply concerned about the proposed ‘Closing Loopholes’ workplace reforms that impact independent contractors and the businesses who engage them. “If you make it harder to engage independent contractors and casuals, you’re ultimately going to make it more expensive to build,” Mr Schmitke said

FREE entry into the 2024 Australian Small Business Champion Awards, operators are encouraged to share their challenges and triumphs.

Australia’s 2.3 million small businesses are being encouraged to celebrate their resilience, after new survey data reveals an exceptionally difficult operating climate during 2023.

Despite 40 per cent of Australian small business owners surveyed during November 2023 indicating a decline in profits during the past 6-12 months and almost half (48 per cent) citing cashflow and profitability as their ongoing top concern, the Australian small business sector continues to play a vital economic role; accounting for one-third of the nation’s GDP and employing two out of every five people in the private sector, according to Australian Government data published during January 2024.

The November 2023 independent survey commissioned by Precedent Productions – a small business in its own right which presents the Australian Small Business Champion Awards – also suggests that as many as 57 per cent of small business owners have a second job or additional ventures, with 43 per cent opting for a side hustle primarily for financial reasons.

The survey also unveils that 64 per cent of Australian small business owners today cite large and medium businesses as their most pressing competition.

Spanning hundreds of small business owners from every Australian state, the survey findings patently bring to light the sector’s enduring struggle with the current cost of living crisis.

“From high inflation and steep increases in operating costs, to challenges associated with staff hire, productivity and the overall ongoing high cost of living, there’s no disputing that Australian small businesses are currently doing it very tough – potentially, tougher than ever before,” says Steve Loe, Managing Director of Precedent Productions for more than four decades and Founder of the Australian Small Business Champion Awards.

“Now more than ever is the time to shine a spotlight on Australia’s small business operators to praise their resilience and their invaluable economic, social and cultural contributions to the nation,” adds Mr Loe.

As the 15 February deadline draws near for FREE submissions into the 2024 Australian Small Business Champion Awards, small business operators from all parts of the country are encouraged to share their challenges and triumphs via online entry at businesschampions.com.au.

This year marks the 26^th consecutive year of the Awards, which specifically highlight the best of Australia’s small businesses in the retail, services and manufacturing industries. Featuring more than 100 categories, the Awards are judged by an independent panel with experience in small business.

“Even in the face of the current challenging economic conditions, so many Australian small businesses persist in backing charities and worthwhile community initiatives. This support is particularly commendable during the current climate and forms a key part of the Australian Small Business Champion Awards’ judging criteria,” explains Mr Loe.

Other findings of the independent survey conducted during November 2023 include:

• 65 per cent of Australian small business owners are concerned for the future of their small business.

• Almost three quarters (71 per cent) believe Australian small businesses pay too much tax and are subject to too much regulation.

• 61 per cent feel they do not get enough government support to take adequate action on matters such as climate change, cyber security, innovation, and local manufacturing.

• 45 per cent feel that it is now harder to meet customer-related outputs or delivery deadlines than pre-Covid.

• 22 per cent of small business owners have implemented Artificial Intelligence (AI) into their operations, with a further 39 per cent seriously considering it.

In addition to its flagship Australian Small Business Champion Awards, Precedent Productions has been presenting a multitude of state and national award programmes for more than 40 years and therefore, Steve Loe and his team are generally well-acquainted with the sentiments of the nation’s business community.

“It is often rightly said that small business is the backbone of the national economy, and I believe this has never rung truer. The economic challenges of 2023 have spilled over into at least the start of 2024 and too many it seems are hanging on by a thread. It is truly a privilege to help shine a deserved spotlight on these Aussie troopers.

“From regional and rural areas to the suburbs and capital cities, small business operators from all parts of the country are encouraged to enter the Awards – free of charge – as we strive to acknowledge the people behind the small businesses that help to shape their local communities and our nation as a whole,” adds Mr Loe.

Top tips for small business operators on how to navigate 2024 include:

• Be financially cautious and as savvy as possible – especially in pricing, cost of goods and services, or fixed operating costs. Inflation is all but guaranteed to remain a sticking point in 2024. While ‘shopping around’ for the best deals in energy, rent, insurance and the like can be time-consuming, the reality is that these expenses are highly-likely to further increase in 2024 – impacting your bottom-line and the spending behaviours of your customers who are essentially contending with the same cost of living pressures. Astute management of resources is vital for small businesses today.

• Keep your customers top of mind and effectively promote your points of difference – as people are likely to remain considerate in their spending, ensure you are adequately targeting potential and loyal customers via the right channels and messaging that is in accordance with their values, perceptions, and needs. Stand out from your competitors – including big businesses – by honing-in on the unique selling points of your offering and consistently providing quality customer service.

• Understand how new regulation will practically impact your business – 2024 will see increased regulation absorbed by the small business sector so it is vital that business owners are adequately prepared for changes to the Fair Work Act, skilled migration policy, the removal of the small business exemption to the Privacy Act, and proposed budget changes to the instant asset write-off.

• Consider the advantages of AI and your cybersecurity requirements – identify which AI or software vendors can benefit aspects of your business as AI continues its rise. Importantly, also expect ongoing cybersecurity-related pressure because if you’re a business that holds peoples’ data, you are a target – no matter the size of your business.

• Social and environmental consciousness – is still important to people, even within challenging economic conditions. Find ways to give back to the communities in which your business operates because it truly helps with building your brand identity and even staff morale. Support of the environment and local community initiatives is a constant feature of Australian Small Business Champion winners.

Finalists of the 2024 Australian Small Business Champion Awards will be announced during March; and winners will be revealed during April.

For more information and to submit a free entry form before the 15 February deadline, visit: businesschampions.com.au.