AI a turn-off? Tech customers are apparently already getting tired of smart devices — and that could hurt sales
New research shows that consumers are increasingly reluctant to use artificial intelligence (AI) when making purchases, especially when it comes to risky products.
A university in the state of Washington study published in the Journal of Hospitality Marketing & Management, surveyed more than 1,000 U.S. adults to assess the relationship between AI disclosure and purchase intentions, finding that there may be emotional distrust in AI, potentially hurting sales.
The team used identical products and descriptions, with the only difference being the addition of the term “Artificial Intelligence.” They found that across eight different categories of tech products and services, the same results were produced: AI was consistently less popular.
Should Companies Abolish AI Description?
High-risk products, such as medical diagnoses and self-driving vehicles, elicited a stronger negative reaction, with the public feeling anxious or uncertain about the product.
Low-risk products, such as vacuum cleaners and room service delivery robots, were received more positively. However, even low-risk products that mentioned AI were still less desirable than their non-AI counterparts.
Despite AI’s trendy image, its potential negative consequences had customers worried, lead author Mesut Cicek said.
“When AI is brought up, it often leads to lower emotional trust, which in turn lowers purchase intentions,” he said. “We found that emotional trust plays a critical role in how consumers perceive AI-powered products.”
The study recommended that companies use phrases like “advanced technology” or “cutting-edge technology” to reduce uncertainty within consumer bases and improve sales. Managers should also emphasize transparency with AI use and focus on building a trustworthy brand image to alleviate concerns that consumers may have.