A recent study conducted by Washington State University has shed light on the growing consumer distrust in Artificial Intelligence (AI) and its impact on purchase intentions. The research, published in the Journal of Hospitality Marketing & Management, surveyed over 1,000 US adults to examine the correlation between AI disclosure and consumer behavior.
The study utilized identical products and descriptions, with the only variation being the inclusion of the term ‘Artificial Intelligence’. Across eight different tech product and service categories, the results consistently showed that products labeled with AI were less popular among consumers.
Interestingly, high-risk products such as medical diagnoses and automated vehicles elicited a stronger negative response, with consumers expressing feelings of anxiety and uncertainty. Even low-risk products like vacuum cleaners and room service delivery robots, when associated with AI, were perceived less favorably compared to their non-AI counterparts.
Lead author Mesut Cicek highlighted that despite AI’s trendy image, potential negative consequences associated with the technology made customers anxious. Cicek stated, “When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions. We found emotional trust plays a critical role in how consumers perceive AI-powered products.”
The study recommends that companies consider alternative phrasing such as ‘advanced technology’ or ‘cutting-edge technology’ to alleviate consumer uncertainties and enhance sales. Additionally, managers should prioritize transparency in AI usage and focus on building a trustworthy brand image to address consumer concerns.
The findings highlight the need for companies to navigate the delicate balance between promoting AI’s benefits while addressing potential apprehensions. By understanding consumer perceptions and actively working to build trust, businesses can better position themselves in the market.