Consumers are increasingly hesitant when it comes to purchasing products that incorporate Artificial Intelligence (AI), especially those with higher risks, according to recent research. A study conducted by Washington State University and published in the Journal of Hospitality Marketing & Management involved surveying over 1,000 adults in the United States to examine the relationship between AI disclosure and purchase intentions. The findings of the study suggest that mentioning AI often leads to emotional distrust in consumers, potentially resulting in reduced sales.
In order to conduct the study, the research team utilized identical products and descriptions, with the only difference being the inclusion of the term ‘Artificial Intelligence’. The results consistently showed that across eight different technology product and service categories, AI was always less popular compared to its non-AI counterparts. This pattern was particularly prominent with high-risk products such as medical diagnoses and automated vehicles, which evoked a stronger negative response from consumers. These consumers tended to feel anxious or uncertain about products that were associated with AI.
However, even low-risk products like vacuum cleaners and room service delivery robots, which mentioned the inclusion of AI, were still perceived as less desirable than their non-AI counterparts. This suggests that regardless of the perceived risk level, the mention of AI had a detrimental effect on consumers’ willingness to purchase these products. The lead author of the study, Mesut Cicek, attributed this pattern to the potential negative consequences associated with AI that make customers anxious.
Cicek further explained, “When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions. We found that emotional trust plays a critical role in how consumers perceive AI-powered products.” Therefore, it is important for companies to consider these emotional reactions and concerns when marketing products that incorporate AI technology.
The implications of this study are significant for businesses that rely on AI in their products or services. The research suggests that companies should reconsider the use of the term ‘Artificial Intelligence’ in their marketing and product descriptions. Instead, alternative phrases such as “advanced technology” or “cutting-edge technology” should be used to alleviate uncertainties among consumers and potentially enhance sales.
Furthermore, the study also stresses the importance of transparency in the usage of AI. Companies should be open about how their products utilize AI technology and emphasize the benefits it provides to consumers. By building a trustworthy brand image, businesses can alleviate concerns that consumers may have regarding AI. This trust-building strategy can help mitigate the negative associations that consumers currently make with AI-powered products.
In conclusion, the research results indicate that consumers are increasingly cautious and skeptical when it comes to purchasing products that incorporate AI. The negative emotional reactions and concerns associated with AI can potentially hinder sales, especially for high-risk products. To counteract this trend, companies should consider using alternative phrases to describe AI technology and focus on building transparency and trust with consumers. By doing so, businesses can overcome consumer apprehensions and increase the desirability and sales of their AI-powered products.
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