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August 12, 2024
Is ‘Artificial Intelligence’ a Consumer Turnoff?
A new study finds that the words “artificial intelligence” in marketing cause many consumers to have a negative opinion of the product, suggesting a growing backlash and disillusionment with the technology.
The study, which presented 1,000 U.S. adults with questions and descriptions, found that products and services described using AI were consistently less popular.
“When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions,” said lead author and Washington State University clinical assistant professor of marketing Mesut Cicek in a statement. “We found emotional trust plays a critical role in how consumers perceive AI-powered products.”
In the experiment, the survey respondents were found to be less likely to choose a smart television with AI cited in the description versus an identical description without an AI reference. For “high-risk” purchases, such as expensive electronics or medical devices, the effect was even more pronounced. Researchers suggested that AI mentions caused more concerns about monetary loss or danger to physical safety.
Cicek advised, “Focus on describing the features or benefits and avoid the AI buzzwords.”
A survey of 1,001 U.S. adults this past May from Variety in collaboration with HarrisX found similar sentiments around GenAI use in media:
- 36% were “less interested” in watching a movie or TV show if they knew it was written using GenAI; 23% were “more interested.”
- 37% were “less interested” in engaging with images or videos on social media if they knew they were created using GenAI; 22% were “more interested.”
- 38% were “less interested” in listening to music if they knew it was produced using generative AI; 20% were “more interested.”
Variety noted that FTI Delta survey data showed those who regularly use GenAI tools are more likely to feel positively toward the use of AI-generated materials. Variety concluded, “Consumer acceptance is likely to fluctuate with evolving awareness about GenAI capabilities.”
Forrester’s December 2023 Consumer Pulse Survey found that consumers see the utility of GenAI but are torn about its potential effects.
Among online adults in Forrester’s survey who had heard of GenAI, 50% agreed that GenAI would make it easier to find information online, and 43% agreed that GenAI would make it easier to learn new things. However, of the GenAI-aware respondents, only 29% agreed that they would trust information from GenAI, and 73% agreed that companies should disclose when they use the technology to interact with them. Among all respondents, 45% agreed that GenAI poses a serious threat to society.
Forrester principal analyst and vice president Thomas Husson said in a statement, “As is often the case with poorly understood tech that promises to change the world, consumers worry about its ethics and human impact, yet a vast majority of these skeptics will use — and love — generative AI in 2024, whether they know it or not. Like it or not, know it or not, GenAI will seep into people’s lives seamlessly and invisibly.”
Discussion Questions
Do you agree that product descriptions for now should emphasize “features or benefits and avoid the AI buzzwords”?
Will increasing awareness of AI eventually lead to more favorable opinions related to products?
How do you see consumers’ comfort with AI evolving?
Poll
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John Lietsch
CEO/Founder, Align Business Consulting
Dave Wendland
Vice President, Strategic RelationsHamacher Resource Group
Jeff Sward
Founding Partner, Merchandising Metrics
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The problem with AI is the term has become ubiquitous. When it is applied to products and services it often doesn’t have much meaning, and that makes it confusing and somewhat pointless. Basically, there is simply too much chatter around AI and not nearly enough practical applications. There is also consumer skepticism in terms of how much AI improves the experience. Most customers who have used AI chatbots dislike them as they see they as inauthentic and incapable of resolving complex issues.
Sell the result, not the tool. “Powered by AI” doesn’t mean much to the average consumer, but an improved search experience would be appreciated.
Agree. How many products gain traction based on the tools used to construct them…
For now? How about forever and always. Of course “features and benefits” should be emphasized; the real issue is whether or not AI is the latter: until the actual benefits begin to catch up with the hype, I don’t think it is.
I’m with Cathy, “Powered by AI” isn’t as big of a deal to consumers as the people who create and sell it would like it to be. At least not yet.
Customer service AI can be frustrating, adding to another “supposed to be helpful” layer between consumers and the answers they seek.
As for AI movies, music and books? No, thanks. I am already tired of wading through ChatGPT created materials online.
Currently, consumers are not fully aware of AI, its capabilities, or even when it is used without their knowledge.
In fact, if consumers know in advance that a product is artificial intelligence-driven, they will feel less trusting of it, as they know that artificial intelligence is “fake.” Nobody trusts “fake” more than “real.” However, when artificial intelligence is deployed most efficiently, consumers will not be able to tell it isn’t real.
Earlier today, I came across a photo of one of the presidential candidates being greeted by thousands of cheering fans upon arrival at the airport. It is very impressive. Except for one thing. Crowds, images, noise, and signs were all fake. AI has found its way into politics, where it will play an increasingly important role in the future.
There is no doubt that consumers are distrustful of artificial intelligence at this early stage in its development. A 1970s book titled “Future Shock” proposed that technology would one day advance to such an extent that it would destroy society, based on the idea that nothing is real, and therefore, our entire environment will be phony and untrustworthy. Db
Are we there yet? Db
Are you referring to the airport photo corroborated by thousands of photographs by hundreds of attendees from many different angles, plus live video from multiple media outlets, posted in real time, all easily found with a simple search? To be sure, social media is flooded with chatbots impersonating people and ready to amplify negative actors – but it’s especially troubling when one candidate and his team who should know better, take the bait and make false claims to whip his followers into a frenzy.
For products, AI overall is still greatly misunderstood even among technology professionals, so the average consumer easily may get confused and frustrated, which doesn’t bode well for a purchasing journey. AI as a feature makes little sense, versus the outcome for the consumer. For shopping, artificial intelligence may imply the use of bots, and the inability to find a real person to interact with, and thus there is a trust issue. For retailers, we can’t let artificial intelligence take the place of genuine interactions.
AI has been such a big part of the media narrative, there is a real AI hype fatigue among consumers. Product descriptions should always include features and benefits, and while AI can enable or enhance them, it’s not necessarily a benefit itself. Whether consumers like it or not, AI will become even more integrated into products and how they’re produced and become even more pervasive than it is today.
If consumers feel they are getting value – in the form of things like relevant offers – their comfort with AI should improve over time.
There are potentially some generational difference that could appear – suggesting with time there will be a natural improvement of comfort.
Making customers feel that they AI is being applied in a responsible manner is paramount – ensuring they understand how their data is being used and giving them the ability to opt out is also likely to help. Being clear about responsible use of AI is also critical. For example, providing transparency about how specific recommendations are determined but also ensuring they understand that they are not excluded from any offering.
From a consumer perspective, there really isn’t a well-defined anything “AI” at this point. I don’t know that this means “a growing backlash and disillusionment with the technology” as postulated at the beginning of this post. It just isn’t clear to consumers how or where this benefits them. Little do they know that AI is baked into many things they use on a daily basis – virtual assistants, navigation apps, personalized recommendations, smartphones, and the list goes on and on.
Words have meanings. AI, Artificial Intelligence. As good as an AI may be, “Artificial” is the first word that comes to mind.
What does AI even mean to the average consumer? You could even make the case that Artificial Intelligence is an oxymoron.
Marketers and others need to stop blathering on about AI and start discussing the benefits of whatever product is being discussed. A nice thought but it will not happen.
I think I have a new way to answer the super power question. When responsible for something, I want the super power to look in the mirror and see someone else to blame.
Of course people are skeptical. First we over hyped it and then, almost overnight, kitchen knives, toasters, vacuum cleaners, paper clips and all manners of things seemed to be miraculously powered by AI. How are we surprised by some of these findings? I think Mr. Husson is mostly right except that it isn’t just misunderstood. It’s oversold, overhyped and over priced.
Let the tech cross the chasm on its merit not on the hype and all will be fine with the world. And then AI will be a feature and benefit and not something to be skeptical about.
The term AI is being thrown around the industry — and many other areas including politics — like confetti. To the point where consumers don’t know what is real and what is fabricated. This is a very slippery slope that holds tremendous risk, despite the upside and tremendous rewards. From where I sit, emphasizing anything “powered by AI” is fraught with wariness. Brands best be careful with this buzzword.
On a lot of fronts, AI has over-promised and under-delivered, so right now I think AI has Brand Promise problem. I’m sure there will be a time when the promise of AI will be balanced with privacy issues and other concerns, but right now I’m more concerned with AI contributing to some kind of Orwellian scenario than I am it helping to create personalized experiences.
Generative Ai used with data governance could help increase the efficiency and brand consistency of product description development and reduce the drudgery. Take a product that may have different size or colors such as the Radio Flyer Wagon. If you add a new wagon with larger “off road wheels” feature, you should have a base description that should be the same as the original one but be able to adjust a few features and benefits to demonstrate the differences. This approach retains the brand and product messaging consistency.
The key is to have human oversight and approval for product descriptions, messages and other content. Early on in the generative AI hype, “Human in the Loop” was a big point of companies pushing for AI to ensure consumers- but I don’t see that talked about as much now. Unfortunately, trust is at risk for many companies that do not have human oversight, overcommunicate due to more productive GenAI content development and also put out vanilla messaging that has lower consumer appeal than before the AI was deployed.
I agree that product descriptions should emphasize features and benefits rather than AI buzzwords. Customers are more interested in the practical results AI delivers, such as enhanced search or personalization, rather than the technology itself. It’s essential to focus on the outcome rather than the jargon. As consumers become more familiar with how AI improves their experiences, such as through better personalization or efficiency, customers may develop a greater openness to AI-driven products.
AI applications in industries such as healthcare (diagnostic tools), finance (risk assessment), transportation (autonomous vehicles), agriculture (crop monitoring), and manufacturing (quality control) showcase tangible benefits, which helps enhance acceptance and trust in AI. Over time, as consumers experience these practical advantages and greater transparency, their comfort with AI is expected to grow.
AI done well is AI that is accurate, relevant and unnoticeable. We’re just not there yet; it won’t be long until we are. When retailers figure out how to do it right (which I suspect will take much longer then it should) and it’s seamlessly improving our customer experiences, all the hoopla will die down.
The challenge with Ai is the average human can’t articulate what the hell it really is. Innovation isn’t always liked. Banks hate bitcoin. Taxis don’t like Uber. Hotels don’t love Airbnb. The is accelerated when we don’t understand what it is and its value proposition to humanity. People don’t like Ai in TV shows but like CGI (Transformers franchise) in films? Until they get into the game and join the new ecosystem. Once the use cases are clearly articulated and understood, people stop fighting progress. People poo poo’d EV’s until they showed up everywhere; now people are saying this just makes sense.
The business needs to stop allowing talking heads to speak on behalf of Ai when they aren’t even the hands on keys programming these machines.
The discussion around AI in consumer trust is fascinating. When it comes to creative tools, though, people seem to be more open-minded.
If you’re curious about the growing world of digital creativity, exploring an AI art apps list might give some insight into how AI can be used positively in art and design.