It sometimes seems that lately, every company has been eager to slap the term 'artificial intelligence’ on their products regardless of accuracy or relevance to the product. Grabbing the attention of potential customers with whatever people seem excited about at that moment makes sense, but AI may not add to a brand’s allure the way those employing that strategy hope it will. A new research paper from Washington State University published in Hospitality Marketing & Management claims a product highlighting its use of AI makes it less appealing to potential buyers, inadvertently harming sales.
The researchers ran a series of experimental surveys asking questions of 1,000 adults in the United States. The premise of the surveys was to see how mentioning AI’s place in a product affects consumer behavior. All of the surveys reached a similar conclusion: products explicitly described as using AI were generally less popular among consumers.
For instance, one survey had participants presented with two descriptions of a smart TV, identical except for the use of the phrase “artificial intelligence” in one. The group that saw an AI mentioned were less likely to say they wanted to buy the TV. That held true regardless of the item or service for sale.
“When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions. We found emotional trust plays a critical role in how consumers perceive AI-powered products,” said Mesut Cicek, WSU clinical assistant professor of marketing and lead author of the study. “We tested the effect across eight different product and service categories, and the results were all the same: it’s a disadvantage to include those kinds of terms in the product descriptions.”
Oh No AI
The rejection of products mentioning AI wasn’t equal across those categories, however. The negative reaction to AI was particularly pronounced for what the researchers called “high-risk” products and services. That means more expensive products and anything related to health or finances. The higher stakes in money or medical care upped the hesitation and chances of rejection for consumers.
That’s no small matter, considering how companies are more likely to invest in embedding AI into their more advanced products, including in the healthcare and financial services spaces. Safety and reliability are paramount in those industries, and people who see that AI is an aspect may not feel the product is trustworthy as a result. So, even though AI has the potential to add significant value to products in terms of personalization and advanced features, the way this technology is communicated to consumers is crucial.
The researchers said it might be best to be more discreet about the presence of AI on its own. Instead, it would be better to focus on the benefits that AI brings without centering AI as the reason. Going back to the smart TV, the researchers suggested emphasizing the extra experiences available on it, without saying that it’s made possible thanks to AI.
Some of this fear may dissipate over time with familiarity. For many people, AI is still seen as a complex and somewhat mysterious technology. The idea that a machine is making decisions or performing tasks that humans traditionally did can be unsettling. Another recent survey found that most people believe that generative AI is already conscious, so some education on what AI really is and what it can do might be necessary. Still, consumers’ concerns about AI are not unfounded. It’s important for individuals to feel confident in the products they purchase, even if that means making something besides AI the central selling point.
“Marketers should carefully consider how they present AI in their product descriptions or develop strategies to increase emotional trust,” Cicek said. “Emphasizing AI may not always be beneficial, particularly for high-risk products. Focus on describing the features or benefits and avoid the AI buzzwords.”
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