Technology companies and SaaS products rely on the term AI to build credibility. However, it is completely different for consumer product brands. This article explores why brands should not use AI in their advertising and messaging.

Artificial intelligence (AI) has swiftly moved from science fiction to everyday reality, powering everything from customer service chatbots to sophisticated medical diagnostics. Yet, despite AI’s technological marvel, a growing body of evidence suggests that its mention in advertising and brand messaging might be more detrimental than beneficial. However, it’s important to remember that as AI evolves, it also presents significant opportunities for brands. This dual nature of AI requires brands to tread carefully when leveraging this buzzword in marketing.

A recent study published in the Journal of Hospitality Marketing & Management highlights a significant issue for marketers: describing a product using AI can significantly lower consumer intention to purchase it. In a time when companies are pouring billions into AI, why does this advanced technology appear to repel customers? The answer lies in the complex interplay of trust, fear, and transparency.

The Impact of AI Labeling on Consumer Behavior

A study led by Dogan Gursoy, the Taco Bell Distinguished Professor of Hospitality Business Management at Washington State University, revealed that consumers are less likely to buy products advertised with the “AI” label. The study included various product categories, from household appliances to healthcare services, and consistently found that AI labeling decreased purchase intentions across the board.

For example, participants were presented with two versions of the same product: a vacuum cleaner or a TV. The only difference? One was labeled “high-tech,” while the other was described as “AI-powered.” The results were clear: consumers showed a marked preference for the product without the AI label. This aversion persisted even in low-risk categories like household appliances, where the potential for harm or significant data misuse is minimal.

This finding is crucial for brands looking to position themselves as cutting-edge by emphasizing their AI capabilities. Instead of attracting consumers, highlighting AI could inadvertently push them away, reflecting a broader societal apprehension towards this technology.

The Dual Nature of Trust in AI

Trust is at the heart of the issue—or rather, the lack of it. The study identifies two types of trust influencing consumer attitudes toward AI: cognitive and emotional. Both play a significant role in the reluctance to embrace AI-labeled products. This reluctance is why brands should not use AI in their ads and messaging. 

Cognitive trust relates to consumers’ expectations regarding AI’s performance. As a machine-driven process, AI is held to a higher standard than human-operated systems. People expect AI to be nearly infallible, as it is free from the biases and errors inherent in human decision-making. However, when AI does make mistakes, these errors are often met with harsher criticism, leading to a rapid erosion of trust.

A prime example of this occurred with Google’s AI-generated search result summaries. Earlier this year, users quickly pointed out instances of confusing or outright false information presented by the AI. This misstep damaged the credibility of the specific tool and underscored the broader challenges of AI in delivering reliable, trustworthy results.

Emotional trust, on the other hand, is rooted in consumers’ subjective feelings about AI. For many, AI represents the unknown, and fear of the unknown can be a powerful deterrent. Many consumers remain uneasy about its broader implications despite the widespread use of AI in various digital services—such as smartphone autocorrect and personalized content recommendations on platforms like Netflix. This discomfort is often fueled by the portrayal of AI in popular culture, where it is frequently depicted as a menacing force with the potential to outsmart or even harm humanity.

This combination of cognitive and emotional mistrust makes it difficult for consumers to fully embrace AI-powered products, even when those products could offer tangible benefits. The result is a disconnect between the technological advancements driven by AI and the willingness of consumers to adopt these innovations into their daily lives. 

The Role of Transparency in AI Perception

The perceived lack of transparency is another significant factor influencing consumer attitudes toward AI. AI systems are often seen as black boxes—complex and opaque processes that operate beyond the average user’s understanding. This lack of clarity breeds suspicion, particularly regarding how AI handles personal data. 

Privacy and data security concerns are paramount in the digital age, and AI’s role in data processing only amplifies these worries. Consumers are increasingly wary of how AI systems collect, store, and use their information. This skepticism is exacerbated by the fact that government regulations around AI are still in flux, leaving many feeling unprotected against potential misuse.

For brands, this means that simply labeling a product as “AI-powered” without providing clear, accessible explanations of how the AI works and what benefits it offers can backfire. Consumers must feel confident that they understand the technology and that it operates in their best interest. Therefore, transparency in AI is not just a necessity but a reassurance that can turn AI from a liability into an asset in brand messaging.

Why Brands Should Not Use AI Label in Advertising and Messaging

Given the study’s findings and the broader consumer sentiment toward AI, it is clear that brands should exercise caution and not use AI in their advertising and messaging. Here are several reasons why:

1. Consumer Mistrust of AI: As the study indicates, many consumers view AI with suspicion. This mistrust can lead to lower purchase intentions, particularly when the AI label is prominently featured in product descriptions. Brands risk alienating potential customers by emphasizing AI, even when the technology could enhance the product.

2. Fear of the Unknown: AI remains a mysterious and, for some, frightening concept. While AI is undoubtedly powerful, its complexity and the lack of transparency around its processes can trigger fear and anxiety. These emotions are not conducive to positive purchasing decisions and can lead consumers to opt for safer and more familiar products.

3. Negative Associations from Pop Culture: The portrayal of AI in movies and television has often been dystopian, with robots and AI systems depicted as threats to humanity. These narratives have left a lasting impact on public perception, making it harder for brands to convince consumers that AI is a benign or beneficial force.

4. Data Privacy Concerns: In a world where data breaches and privacy violations are all too common, consumers are rightly concerned about how AI interacts with their personal information. Brands that acknowledge and address these concerns head-on demonstrate understanding and empathy, which can help them navigate the potential resistance or outright rejection of their AI-powered products.

5. The Need for Clear, Consumer-Centric Messaging: Simply labeling a product as “AI-powered” is insufficient. Brands must go beyond buzzwords and provide clear, tangible explanations of how AI improves the product and benefits the consumer. Without this effort, the AI label can become a stumbling block rather than a selling point.

Navigating the Future of AI in Marketing

So, what should brands do if they want to incorporate AI into their products and services without alienating customers? The key lies in thoughtful, transparent, and consumer-focused messaging.

1. Focus on Benefits, Not Technology: Instead of emphasizing that a product uses AI, brands should highlight the specific benefits that the technology provides. For example, rather than stating that a vacuum cleaner is “AI-powered,” a brand could focus on how the vacuum intelligently adapts to different floor types, ensuring a more efficient cleaning.

2. Educate Consumers: Brands have an opportunity to demystify AI by providing educational content that explains how the technology works and why it is safe. This could include blog posts, videos, or even interactive demos that walk consumers through the AI’s capabilities in an accessible way.

3. Build Trust Through Transparency: Transparency is critical to building consumer trust. Brands should be upfront about how AI processes data, what safeguards are in place, and how consumer privacy is protected. This openness can help alleviate fears and build confidence in AI-powered products.

4. Use AI as a Complement, Not a Feature: AI should be positioned as a tool that enhances the product rather than the main feature. By integrating AI seamlessly into the overall product experience, brands can avoid the pitfalls of overemphasizing technology.

While AI represents a significant technological advancement, its inclusion in brand messaging and advertising requires careful consideration. The findings from recent studies, including the one published in the Journal of Hospitality Marketing & Management, make it clear that consumers still need to be entirely comfortable with AI, and this discomfort can negatively impact their purchasing decisions.

Brands that wish to leverage AI must focus on building trust, providing transparency, and emphasizing the tangible benefits that AI offers to consumers. By taking these steps, companies can avoid the potential pitfalls of the AI label and create messaging that resonates positively with their audience.

FAQs

Why do consumers distrust AI in products?

Consumers often distrust AI because of its complexity, lack of transparency, and negative portrayals in popular culture. Concerns about data privacy and the fear of the unknown compound this mistrust. Because of this distrust, brands should not use AI in advertising and messaging.

How can brands build trust with consumers when using AI?

Brands can build trust by being transparent about how AI works, educating consumers on its benefits, and ensuring that AI is used to enhance the product rather than being the main selling point.

Is it possible to advertise AI without scaring customers away?

Yes, it is possible to advertise AI without scaring customers away by focusing on its benefits, being transparent about how it works, and avoiding overemphasis on the technology itself.

What is cognitive trust in the context of AI?

Cognitive trust refers to the expectation that AI, as a machine, should be free from errors and biases. When AI fails to meet this expectation, trust can be quickly eroded.

Why might labeling a product as “AI-powered” lower purchase intentions?

Labeling a product as “AI-powered” can lower purchase intentions because consumers may associate AI with complexity, lack of control, and potential risks, leading to hesitation or rejection of the product.

What can brands do to market AI-powered products effectively?

Brands should focus on AI’s specific benefits, provide clear and transparent explanations, and integrate AI as a complementary feature rather than the main selling point.