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🗿 Brands Have Overestimated AI Interest

🗿 Brands Have Overestimated AI Interest

Consumers are less interested in purchasing an item if it is labeled with the term “AI.”

Alec from NoFomo
August 13, 2024

GM. Trump and Elon talked for 2 hours on X yesterday, and we are only 2 weeks away from September, where did summer go?

Today we talk about some recent studies showing how people might not be as interested in AI as it seems.

Without Further Ado. ☕ *knuckle cracks* ☕ Let’s get into it.

Brands Have Overestimated AI Interest

A study published in the Journal of Hospitality Market and Management in June found consumers were less interested in purchasing an item if it was labeled with the term “AI.”

“Among about 200 participants across age and gender demographics, the impact of AI labels on a consumer’s willingness to buy a product was unanimous, according to Dogan Gursoy, hospitality management professor at Washington State University’s Carson College of Business and one of the study’s authors.”

Has everyone been listening to NoFomo’s takes on not blindly trusting AI? It looks like much of the recent AI hype could be coming only from a loud minority.

Brands have invested heavily in AI, assuming it will be a major selling point for years to come. According to a recent survey, a significant percentage of consumers prefer traditional, non-AI products. This disconnect between brand expectations and consumer preferences highlights a critical oversight in market research.

Why Are Consumers Turning Away from AI?

Some factors we believe are contributing to the distrust:

Privacy Concerns: Many consumers are wary of how their data is being used and stored by AI-driven products.
Complexity: AI products often come with a steep learning curve, making them less accessible to the average user.
Trust Issues: There is a general skepticism about the reliability and ethical implications of AI - only 30% of respondents saying they trust generative AI, according to a Cognizant survey of 1,000 U.S. consumers
Benefiting Only Corporations: Almost three-fourths of respondents believed genAI would increase corporate profits, and 28% believed genAI would benefit consumers the least compared to corporations.

What’s Next?

We’re not here to tell you how to feel about more AI being integrated across the tech world. Some of it is truly amazing, but it definitely seems like its meteoric rise is unsustainable.

We have our own doubts about it all not devolving into a sci-fi movie, but that doesn’t seem like it’ll happen anytime soon.

Are you more or less likely to purchase a product with an AI integration?

What We’re Reading

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We’ll try to find things that make your life easier. Or we’ll give honest, informative reviews of apps capturing Internet attention.

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Today’s tool is perfect for those of our readers looking to supercharge their productivity.

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