Huma Siraj
Business executives are enamored with AI. Numerous businesses are asserting that they are “AI-first” businesses. 78% of companies currently utilize AI in at least one business function, up from 72% in early 2024 and 55% a year ago, according to the most recent McKinsey Global Survey on AI. Marketers have also been impacted by the AI flaw. There seems to be “AI-powered” this and “artificial intelligence” that with every new product launch.
The issue is that a lot of your clients detest it.
A startling truth is revealed by new study. Researchers from Temple University and Washington State University divided test subjects into two groups, one of which was shown “new technology” products and the other “AI-powered“ products. AI did not have a halo effect. Buying was consistently lower for the AI group.
Researchers gave 1,000 respondents product descriptions in that study, which was published in the Journal of Hospitality Marketing & Management. They discovered that products that were advertised as utilizing AI were consistently less popular.
The Psychology of the Backlash Against AI
It’s not a logical explanation. It’s sentimental. According to Mesut Cicek, an assistant professor at Washington State University, “the main findings of this study is the use of AI decreases emotional trust,” as reported by CX Dive. “The consumers have trust issues with AI, and then also it decreases the purchase intention.”
Consider what your Customers think when they encounter the words “AI-powered.” You hope they’re considering innovation or efficiency. They are more likely to be thinking about losing their jobs, having hallucinations, using pizza glue, having their privacy violated, and having machines make judgments they don’t understand. Perhaps even the dismal future’s Terminator robots.
According to the Wall Street Journal, Dogan Gursoy, a regents professor at Washington State and research co-author, says, “When we were thinking about this project, we thought that AI will improve [consumers’ willingness to buy] because everyone is promoting AI in their products.” “But apparently it has a negative effect, not a positive one.”
The more danger there is, the worse the effect. The difference was more noticeable for offerings viewed as riskier purchases, like a car or a medical-diagnostic service, while it was less noticeable for items the researchers classified as low risk, like a television.
AI Is More Common Among Older Customers-Aware
This pattern is supported by a different analysis by Parks Associates that is detailed in the WSJ story. Of the approximately 4,000 Americans polled, 18% said AI would increase their likelihood of making a purchase, 24% said it would decrease their likelihood, and 58% said it had no effect.
24% to 27% of younger respondents (those between the ages of 18 and 44) stated that they would probably purchase a Product that was advertised as incorporating AI. However, 32% of respondents 65 and older stated they would be less likely to purchase a product that used artificial intelligence.
The group that rejects AI marketing the most frequently is the wealthiest consumer segment older folks with disposable income.
How Marketers Should Respond to AI Allegations
According to renowned Harvard Business School professor Theodore Levitt, “people don’t want to buy a quarter inch drill.” A quarter inch hole is what they want Put otherwise, don’t brag about your ultra-durable, diamond enhanced, tungsten carbide drill bits. All your customers want is more holes, faster holes, and cleaner holes.
Therefore, keep improving your items with AI. Simply put, quit boasting about it, at least until customer perceptions shift. Benefits should take precedence before buzzwords.
People will reply no when asked whether they would like to speak with an AI chatbot. (To be honest, most chatbots were a pointless way to prevent customers from bothering real people until lately.) But if you ask them if they want dependable, quick problem solving, they’ll be all for it.
I anticipate that opinions will shift over time, most likely sooner rather than later. Already, some markets are keen to adopt AI. B2B sales pitches will often gain from AI messaging, as company executives are calling for a quicker implementation of AI.
Focusing on consumer demands rather than product features always results in better marketing. Even if AI is improving your product, don’t make an effort to discuss it with your customers unless they feel that it is really necessary.
