Using the word 'AI' in product descriptions may reduce consumer purchasing motivation
With the rise of generative AI, it's becoming more common to see products touting AI functions. However, a study conducted by Washington State University in the United States revealed that including the term 'artificial intelligence' in the description of a product or service reduces consumers' willingness to purchase it.
Adverse impacts of revealing the presence of “Artificial Intelligence (AI)” technology in product and service descriptions on purchase intentions: the mediating role of emotional trust and the moderating role of perceived risk: Journal of Hospitality Marketing & Management: Vol 0, No 0 - Get Access
Using the term 'artificial intelligence' in product descriptions reduces purchase intentions | WSU Insider | Washington State University
Study Finds Consumers Are Actively Turned Off by Products That Use AI
https://futurism.com/the-byte/study-consumers-turned-off-products-ai
The research team presented more than 1,000 subjects with the same description of a smart TV and then studied their subsequent consumer behavior. One group included the term 'AI' in the description, while the other group's description omitted the term. The results showed that the group whose description included 'AI' was less likely to purchase the TV than the other group.
The research team also conducted similar experiments on products other than smart TVs. As a result, products containing the term 'AI' were less likely to be purchased when it came to 'high-risk' products such as expensive electronic devices, medical equipment, and financial services. 'We tested the effect on a total of eight products and services, and the results were the same for all of them. This shows that it is not desirable to include terms such as 'AI' or 'artificial intelligence' in product descriptions,' said Mesut Cicek of the research team.
'Using the term 'AI' to describe a product that may involve financial loss or danger to physical safety may make consumers more wary and less likely to make a purchase,' Cicek said.
Technology research and consulting firm Gartner has previously argued that 'the hype around generative AI has peaked.' This experiment throws a wrench into the current overuse of the term 'AI.'
'This experiment has shed light on how consumers perceive products equipped with AI. Companies need to carefully consider how they present AI to consumers in their product descriptions and develop appropriate strategies to increase purchasing motivation. Emphasizing AI is not always beneficial, especially for high-risk products. Therefore, focus on explaining the features and benefits and avoid including the buzzword 'AI' in the product description,' Cicek said.
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