One of the popular terms that brands should avoid when describing their products is AI, as it seems to turn off customers, according to a recent study published in the Journal of Hospitality Marketing & Management. The study found that labeling products as AI-powered decreases customers’ intention to purchase them, regardless of the product category.
Researchers conducted experiments with participants of various age groups, presenting them with similar products, one labeled as high tech and the other as utilizing AI. The results consistently showed a significant decrease in the intention to buy or use the product when it was associated with AI.
This aversion to AI reflects consumers’ general hesitance to adopt artificial intelligence into their daily lives, despite the rapid advancements in the tech industry. The study highlighted that consumers have differing levels of trust when it comes to products categorized as low risk, like household appliances, and high risk, such as self-driving cars and AI-powered medical services.
The study emphasized two crucial aspects influencing consumers’ perceptions of AI products – cognitive trust and concerns around transparency. Cognitive trust refers to the high expectations people have for AI as a technology free from human error. Additionally, the lack of transparency around how AI algorithms handle personal data raises privacy concerns among consumers.
The study also pointed out that consumers’ fear of the unknown, fueled by pop culture representations of AI as villainous robots in movies, plays a significant role in shaping their perception of the technology. The negative portrayal of AI in media has contributed to skepticism and wariness towards AI-powered products.
The message to brands is clear – instead of merely labeling products as AI-powered, it is essential to provide detailed information on how AI can benefit consumers. Clear communication about the capabilities of AI in a product can help alleviate consumer fears and build trust. Transparency and education about AI functionalities are crucial for brands to overcome consumers’ reservations and increase acceptance of AI in everyday products and services.
