A survey of more than 2300 young people in NSW found mental health and cost of living pressures are impacting younger generations as much as their parents.
But unlike their less tech savvy elders, 29 per cent of teenagers are turning to generative AI for mental health support, the 2026 Youth Week Polling Report, released on Monday, found.
Almost the same number, 27 per cent, used AI for conversation or personal advice.
Nearly three-quarters of those surveyed had used AI in the last year, with one-in-four saying they used chatbots like ChatGPT multiple times a day.
The most common reason for using the tools was for studying or homework help, but gaps in companionship and counselling were filled by the technology.
"The polling results around AI usage ... identify how government and services also need to adapt to better support young people," NSW Advocate for Children and Young People Katherine McKernan said.
Only 12 per cent of young people with a mental health condition said services are affordable, the survey found.
This was compared to 65 per cent of all those surveyed, highlighting a disconnect in the experiences of those who rely on treatment.
Testimonies in the final report include complaints about long wait lists and high costs for parents being barriers to children accessing professional help.
Despite concerns about mental health treatment, 83 per cent of the state's youth reported feeling happy about their life in the past year.
"It's encouraging to see the majority of young people say they are happy, but that sits alongside some pretty stark realities about the challenges they're facing too," Minister for Youth Rose Jackson said.
Effects of the recent social media ban were also assessed, with nearly half of those affected saying the ban had no impact on their life.
Those saying the ban had a positive impact outweighed the reverse by nearly three-to-one, but the benefits are tempered by how many are still using social media in some form.
Sixty per cent of people aged 13 to 15 were either still using restricted sites or had switched to other apps, the survey found.
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