New York, July 30 (IANS) Including the term “artificial intelligence” in a product description may unintentionally reduce sales, according to a study conducted by researchers at Washington State University (WSU).
The study, published in the Journal of Hospitality Marketing & Management, surveyed more than 1,000 U.S. adults to explore the impact of AI disclosure on consumer behavior.
According to Mesut Cicek, lead author of the study and assistant professor of clinical marketing, the survey results consistently showed that products labeled with “artificial intelligence” were less appealing.
“When AI is mentioned, it tends to lower emotional trust and, as a result, purchase intent,” Cicek said.
“We found that emotional trust plays a key role in how consumers perceive AI-powered products.”
The study presented participants with descriptions of a variety of products and services, some of which explicitly mentioned AI, and some of which did not. For example, in one experiment, participants were shown identical descriptions of smart TVs, except one group's description included the term “artificial intelligence.” The group exposed to the AI mention was less likely to express interest in purchasing the TV. Negative reactions to AI disclosures were more pronounced for “high-risk” products and services, such as expensive electronics, medical devices, and financial services. According to Cicek, these are areas where consumers are more cautious, as potential failures could lead to significant financial losses or safety concerns.
“We tested its effect across eight different product and service categories and the results were all the same: that including such terms in product descriptions is a disadvantage,” he noted.
The research suggests that companies need to carefully consider how they present AI in their marketing: “Marketers should focus on explaining features and benefits and avoid AI buzzwords, especially for high-risk products,” Cicek advises.
– Ian
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