This is why AI products scare away many customers

Artificial intelligence is often associated with innovation and progress. Many companies therefore advertise their products accordingly. However, as a new study from Washington has shown, AI products seem to put off consumers.

Whether it's ChatGPT, autonomous driving or image generators: Artificial intelligence has conquered the market in recent years. More and more companies are trying to integrate AI applications into their products. For a long time, this was considered to be predominantly positive. But now the tide seems to be turning.

Study shows: AI products cause skepticism

As a new study from Washington State University found, companies can unintentionally harm their sales if they use the term “artificial intelligence” in product descriptions.

For the study, the research team conducted an experimental survey with more than 1,000 adults in the US. The goal: to investigate and evaluate the relationship between AI and consumer behavior.

The results consistently show that products labeled with “artificial intelligence” were less popular. Mesut Cicek, clinical assistant professor of marketing and lead author of the study, explains in a university report: “When artificial intelligence is mentioned, emotional trust tends to decrease, which in turn reduces purchase intentions.” However, emotional trust also plays a crucial role in how AI-supported products are perceived, Cicek continues.

Too much risk: consumers choose products without AI

The study included questions and descriptions of different product and service categories. As part of one test, for example, the test subjects were asked to choose between different smart TVs. They were presented with two product groups.

The only difference was that one product group included the term “Artificial Intelligence” and the other did not. The group that saw “AI” in the product description said they were less likely to buy the TV.

The researchers also found that the negative reaction was exacerbated by “risky” products and services, including expensive electronics, medical devices and financial services.

The reason: A failure of AI carries a higher risk. The consequence could be financial loss or physical injury. According to Cicek, the mention of artificial intelligence would therefore make people more cautious and reduce the likelihood of a purchase.

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