Sometimes it seems like every company these days is eager to slap the term “artificial intelligence” on their products, regardless of its accuracy or relevance to the product. Capturing the attention of potential customers with what people seem to be excited about at the time makes sense, but AI may not help a brand’s appeal in the way that those who employ that strategy hope. A new research paper from Washington State University, published in Hospitality Marketing & Management, argues that a product that emphasizes the use of AI makes it less attractive to potential buyers, inadvertently harming sales.
The researchers conducted a series of experimental surveys with questions from 1,000 adults in the United States. 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 generally less popular with consumers.
For example, in a survey, participants were presented with two descriptions of a smart TV, identical except that the term “artificial intelligence” was used in one. The group that saw an AI mentioned were less likely to say they would buy the TV. This was true regardless of the item or service being sold.
“When AI is mentioned, it often leads to lower emotional trust, which in turn lowers 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 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 a disadvantage to include these types of terms in product descriptions.”
Oh no AI
However, rejection of products that mentioned AI was not uniform across categories. The negative reaction to AI was particularly pronounced for what the researchers called “risky” products and services. That means more expensive products and anything related to health or finance. The higher stakes in money or medical care increased consumers’ hesitation and likelihood of rejection.
That’s no small feat, considering that companies are more likely to invest in integrating AI into their more advanced products, including in healthcare and financial services. Safety and reliability are paramount in those sectors, and people who see AI as an aspect may not find the product trustworthy as a result. So while AI has the potential to add significant value to products in terms of personalization and advanced features, how this technology is communicated to consumers is crucial.
The researchers said that it might be best to be more discreet about the presence of AI itself. Instead, it would be better to focus on the benefits that AI brings, without making AI the reason. Returning to the smart TV, the researchers suggested emphasizing the additional experiences available on it, without saying that it was made possible thanks to AI.
Some of this fear may dissipate over time with familiarity. For many, AI is still seen as a complex and somewhat mysterious technology. The idea of a machine making decisions or performing tasks that humans traditionally did can be unsettling. Another recent study found that most people believe that generative AI is already conscious, so some education about what AI really 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 that means making something other than AI the central selling point.
“Marketers should carefully consider how to present AI in their product descriptions or develop strategies to increase emotional trust,” Cicek said. “Emphasizing AI may not always be beneficial, especially for high-risk products. Focus on describing the features or benefits and avoid the AI buzzwords.”
