The research is in, and it seems that businesses that rushed to hop on the AI bandwagon may be driving customers away. A study published by the Journal of Hospitality Marketing and Management found that the negative connotations surrounding the term AI when used in marketing campaigns reduced sales. One of the authors of the study, David Gursoy, told CNN that in every single case, “whenever AI was mentioned in the product description the intention to buy or use the product or service was significantly lower”. Consumers don’t want to pay for products and services that utilize AI because they don’t trust AI.
Artificial intelligence has been around for decades but, to the average person, AI is brand new technology that they don’t understand and are afraid of. A Forbes survey showed that the vast majority of Americans wouldn’t trust AI to do anything from menial tasks like choosing gifts to life altering decision making like flying a plane. It’s one thing for an automaker to utilize AI in the manufacturing process but it’s another for them to promote self-driving cars powered by AI and expect the public to be on board with the idea.
The issue of privacy is also of concern because consumers don’t know how their personal data will be protected. If they buy a coffee maker that is powered by AI will data be gathered and delivered to the manufacturer with every morning brew? Its public knowledge that artificial intelligence is unregulated and being used to deepfake videos and mimic voices. There is no limit to what it can do. So, what now?
Transparency in marketing is key to building trust with consumers. Companies that have invested in the technology should allocate dollars to campaigns focusing on education. Consumers need to understand how artificial intelligence has improved the product or service, and how the technology will improve their overall experience, otherwise they won’t trust it.