Brands should avoid this popular term. It's turning off customers

Even as technology companies invest heavily in artificial intelligence (AI), a recent study suggests that labeling products as AI-powered may dissuade customers from purchasing them. The study, published in June, found that describing a product as using AI significantly reduces consumers’ intention to buy it. The researchers examined various products and services, including vacuum cleaners, TVs, consumer services, and health services, and in all cases, mentioning AI in the product description led to a lower intention to buy. The study highlights consumers’ reluctance to adopt AI in their daily lives, despite its rapid advancement in recent months. The study also discusses the role of trust in consumers’ perception of AI-powered products. Cognitive trust, which relates to the expectation that AI should be free from human error, is quickly eroded when AI fails to meet those expectations. Limited knowledge and understanding of AI often lead consumers to rely on subjective judgments and emotional trust. The lack of transparency related to how AI handles personal data is another factor that affects consumer perceptions. Concerns about privacy and the opaqueness of algorithms raise concerns among customers. To mitigate these issues, the study suggests that companies should focus on crafting the right messaging to alleviate fears, rather than simply slapping on the “AI-powered” label.