Lately, it can seem like every company is eager to slap the words “artificial intelligence” on their product, regardless of accuracy or relevance to the product. While it makes sense to grab potential customers’ attention with what people seem to be excited about in the moment, AI may not boost a brand’s appeal as much as those adopting the strategy hope. According to a new research paper published in the journal Hospitality Marketing & Management by Washington State University, products that highlight their use of AI are less appealing to potential buyers, unintentionally hurting sales.
The researchers conducted a series of experimental surveys of 1,000 US adults. The goal of the surveys was to explore how mentioning AI’s place in a product affects consumer behavior. All studies came to a similar conclusion: products that are explicitly described as using AI are generally less popular among consumers.
For example, in one study, participants were shown two identical descriptions of a smart TV, except one included the phrase “artificial intelligence.” The group that saw the mention of AI was less likely to say they wanted to buy that TV. This was true regardless of the product or service being sold.
“When AI is mentioned, emotional trust tends to decrease, and as a result, so does purchase intent. We found that emotional trust plays a key role in how consumers perceive AI-powered products,” said Mesut Cicek, clinical assistant professor of marketing at WSU 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 disadvantageous to have such a term in a product description.”
Ah, AI.
But rejection of products that mentioned AI was not uniform across these categories. Negative reactions to AI were especially pronounced for what the researchers called “high-risk” products and services: more expensive products and those related to health or finances. The higher the financial or medical risk, the more likely consumers were to hesitate or reject it.
This is no small matter given the likelihood that companies will invest in incorporating AI into more advanced products, including in the healthcare and financial services sectors. Safety and reliability are paramount in these industries, and people who perceive AI as one-sided may feel they cannot trust the product as a result. Thus, while AI has the potential to add significant value to products in terms of personalization and advanced capabilities, how this technology is communicated to consumers will be crucial.
The researchers said it might be best to be more subtle about the presence of AI itself. Instead, it would be better to focus on the benefits that AI brings, rather than making it the center of the reasoning. Returning to smart TVs, the researchers suggested emphasizing the additional experiences available with smart TVs, rather than saying that it was made possible because of AI.
These fears may fade over time as people become more familiar with them. For many, AI is still seen as a complex and somewhat mysterious technology. The idea of machines making decisions and performing tasks traditionally performed by humans is unsettling. Another recent survey found that most people believe generative AI is already conscious, so education about what it actually is and what it can do may be necessary. Still, consumer concerns about AI are not unfounded. It’s important for individuals to have confidence in the products they buy, even if something other than AI ends up being the main selling point.
“Marketers should think carefully about how they portray AI in their product descriptions or develop strategies to build emotional trust,” Cicek says. “Highlighting AI isn’t always beneficial, especially for high-risk products. Focus on describing features and benefits and avoid AI buzzwords.”
