AI a turn-off? Tech customers are apparently already getting bored of smart devices and it could be hitting sales

Date:
Sun, 04 Aug 2024 05:17:10 +0000

Description:
Emphasising Artificial Intelligence discourages consumers, study finds.

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Consumers are becoming actively put off by the mention of Artificial Intelligence (AI) when purchasing, especially with high-risk products, new research has claimed.

A Washington State University study published in the Journal of Hospitality Marketing & Management surveyed over 1,000 US adults to assess the link between AI disclosure and purchase intentions, indicating a possible
emotional distrust in AI which can potentially hurt sales.

The team used identical products and descriptions, with the only difference being the inclusion of the term Artificial Intelligence, finding that across eight different tech product and service categories, the same results were produced - AI was always less popular. Should companies ditch AI description?

High-risk products such as medical diagnoses and automated vehicles elicited
a stronger negative response, with audiences feeling anxious or uncertain about the product.

Low-risk products, such as vacuum cleaners and room service delivery robots were perceived more positively. However, even low-risk products which mentioned AI were still less desirable than their non-AI counterparts.

Despite its trendy image, AIs potential negative consequences made customers anxious, lead author Mesut Cicek suggested.

When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions, he said. We found emotional trust plays a critical role in how consumers perceive AI-powered products.

The study recommended companies use phrasing like advanced technology or cutting-edge technology to ease uncertainties within consumer bases and enhance sales. Managers should also emphasise transparency with AI usage, and focus on building a trustworthy brand image to alleviate concerns consumers may have. More from TechRadar Pro Skills gap and lack of proper
infrastructure is hindering AI usage at many firms Using AI at work might actually be harming your productivity but it's your bosses fault These are the best AI tools and best AI writers around today



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Link to news story: https://www.techradar.com/pro/ai-a-turn-off-tech-customers-are-apparently-alre ady-getting-bored-of-smart-devices-and-it-could-be-hitting-sales


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