Why putting AI in your product description actually hurts sales
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AI is appearing everywhere, from your tax preparation software to matchmaking apps. But that doesn’t mean consumers aren’t there yet—and companies that don’t tread carefully in explaining or disclosing how AI is used or incorporated into a product can end up hurting their bottom lines.
A new study from Washington State University (WSU) researchers, which surveyed more than 1,000 Americans to develop a deeper understanding of the relationship between the disclosure of AI and consumer behavior, found that when companies mention AI in product descriptions, sales decreased. Effectively, skeptical consumers, when faced with a choice between an AI-enhanced product and a “dumb” version, would choose the “dumber” versions.
“When it comes to AI, it tends to reduce emotional trust, which in turn reduces purchase intentions,” said Mesut Cicek, an assistant professor in the marketing clinic at WSU and lead author of the study, in an accompanying press release. “We found emotional trust plays an important role in how consumers perceive AI-powered products.”
In the study, researchers exposed participants to different product and service categories, with specific descriptions of those products or services including references to “artificial intelligence.” In another study, a group of participants indicated that they were less likely to buy a TV equipped with AI in the description, which formed a negative response to the disclosure of AI.
“We tested the effect on eight different categories of products and services, and the results were the same: It’s bad to include those kinds of words in product descriptions,” Cicek said.
He pointed out that the data could be useful for marketing teams trying to figure out how to use AI to get more sales. “Marketers should carefully consider how they introduce AI into their product descriptions or develop strategies to increase emotional trust,” he said. “An emphasis on AI may not always be beneficial, especially for high-risk products. Focus on describing features or benefits and avoid AI terminology. “
While consumers may not be sold on the promises of AI yet, investors and big businesses are all in.
AI was front and center at Microsoft’s recent earnings call, where CEO Satya Nadella said the company plans to “lead the AI era.” Microsoft is one of many technology companies incorporating AI into a number of its products and services—a list that includes Intuit, Atlassian, and Adobe.
Recent data from EY also shows that investors are investing in AI, with 95% of CEOs reporting that their companies are investing in AI, and that there are plans to increase that investment in the coming year.
“Almost all companies are investing in AI, but we’re seeing a disparity between companies that are experimenting in small ways and those that are making big investments, and the leaders who continue to prioritize investments in AI are consistently ahead of the pack and reaping the benefits,” Dan said. Diasio, EY Global Artificial Intelligence Consulting leader, in an EY release.
Whether those positive returns will continue, however, may be in question as researchers dig deeper into the relationship between consumers and AI—and this latest study may provide a warning signal.
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