AI Loses Consumer Trust

AI Loses Consumer Trust

A recent study published in the Journal of Hospitality Marketing & Management reveals that consumers are increasingly turned off by products marketed with the term “artificial intelligence.” Researchers found that including “AI” in product descriptions significantly lowers emotional trust, decreasing purchase intentions. In experiments, participants showed a marked preference for products, such as smart televisions, when the AI label was omitted. This trend is particularly pronounced for high-risk purchases, like electronics and medical devices, where consumers are more cautious about potential loss or safety concerns. As the hype surrounding AI wanes, marketers are advised to focus on product features and benefits rather than relying on AI buzzwords to regain consumer trust and interest.

Editor’s Note: The findings from the recent study reflect a broader societal anxiety about AI’s implications, including concerns about privacy, accountability, and the potential for obsolescence. On one hand, this means that the public is awakening to the dangers of AI use, which is a good thing. On the other hand, companies are being forced to hide their products’ AI components, leaving people with no choice. [Also read Building an ethical AI, The 10 essential ingredients of ethical AI, How AI Image Generation Amplifies Racial Stereotypes, Can humans harm AI?].

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