It sometimes seems like every company lately is eager to slap the term “artificial intelligence” on their products, regardless of its accuracy or relevance to the product. Capturing potential customers’ attention with whatever people seem to be excited about at the moment makes sense, but AI may not increase a brand’s appeal in the way those employing that strategy hope. A new research paper from Washington State University published in Hospitality Marketing & Management claims that a product that highlights the use of AI makes it less appealing to potential buyers, inadvertently hurting sales.
The researchers conducted a series of experimental surveys in which 1,000 adults in the United States were asked questions. The premise of the surveys was to see how mentioning the place of AI in a product affects consumer behavior. All of the surveys came to a similar conclusion: products that were explicitly described as using AI were, in general, less popular with consumers.
For example, in one survey, participants were presented with two descriptions of a smart TV, identical except for the use of the phrase “artificial intelligence” in one of them. The group that saw AI mentioned was less likely to say they wanted to buy the TV. This held true regardless of the item or service being sold.
“When AI is mentioned, it tends to decrease emotional trust, which in turn decreases purchase intentions. We found that emotional trust plays a critical role in how consumers perceive AI-powered products,” said Mesut Cicek, a clinical assistant professor of marketing at WSU and senior author of the study. “We tested the effect on eight different categories of products and services, and the results were all the same: It is a disadvantage to include such terms in product descriptions.”
Oh no AI
However, the pushback against products that mention AI was not equal across all of those categories. The negative reaction to AI was particularly pronounced for products and services that researchers called “high risk” — meaning more expensive products and anything related to health or finances. The more money or health care is at stake, the more hesitancy there is and the more likely consumers are to be turned away.
This is no small matter, considering that companies are more likely to invest in incorporating AI into their more advanced products, including in the healthcare and financial services sectors. Security and reliability are critical in these industries, and people who view AI as one aspect may not feel that the product is trustworthy as a result. So while AI has the potential to add significant value to products in terms of personalisation and advanced features, how this technology is communicated to consumers is crucial.
The researchers said it would be better to be more discreet about the presence of AI itself. Instead, it would be better to focus on the benefits that AI brings without focusing on AI as the reason. Coming back to the smart TV, the researchers suggested emphasizing the additional experiences available on it, without saying that they are made possible by 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 of a machine making decisions or performing tasks traditionally done by humans can be unsettling. Another recent survey found that most people believe generative AI is already conscious, so there might be a need to educate themselves about what AI actually is and what it can do. Still, consumer concerns about AI are not unfounded. It’s important for people to feel confident about the products they buy, even if that means making something other than AI the main 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 features or benefits and avoid AI-related buzzwords.”
