Beware of Promoting AI in Products, Researchers Warn Marketers
Published on June 30, 2025 at 06:04AM
The Wall Street Journal reports that "consumers have less trust in offerings labeled as being powered by artificial intelligence, which can reduce their interest in buying them, researchers say." The effect is especially pronounced for offerings perceived to be riskier buys, such as a car or a medical-diagnostic service, say the researchers, who were from Washington State University and Temple University. "When we were thinking about this project, we thought that AI will improve [consumers' willingness to buy] because everyone is promoting AI in their products," says Dogan Gursoy, a regents professor of hospitality business management at Washington State and one of the study's authors. "But apparently it has a negative effect, not a positive one." In multiple experiments, involving different people, the researchers split participants into two groups of around 100 each. One group read ads for fictional products and services that featured the terms "artificial intelligence" or "AI-powered," while the other group read ads that used the terms "new technology" or "equipped with cutting-edge technologies." In each test, members of the group that saw the AI-related wording were less likely to say they would want to try, buy or actively seek out any of the products or services being advertised compared with people in the other group. The difference was smaller for items researchers called low risk — such as a television and a generic customer-service offering... Meanwhile, a separate, forthcoming study from market-research firm Parks Associates that used different methods and included a much larger sample size came to similar conclusions about consumers' reaction to AI in products. "We straight up asked consumers, 'If you saw a product that you liked that was advertised as including AI, would that make you more or less likely to buy it?' " says Jennifer Kent, the firm's vice president of research. Of the roughly 4,000 Americans in the survey, 18% said AI would make them more likely to buy, 24% said less likely and to 58% it made no difference, according to the study. "Before this wave of generative AI attention over the past couple of years, AI-enabled features actually have tested very, very well," Kent says.
Published on June 30, 2025 at 06:04AM
The Wall Street Journal reports that "consumers have less trust in offerings labeled as being powered by artificial intelligence, which can reduce their interest in buying them, researchers say." The effect is especially pronounced for offerings perceived to be riskier buys, such as a car or a medical-diagnostic service, say the researchers, who were from Washington State University and Temple University. "When we were thinking about this project, we thought that AI will improve [consumers' willingness to buy] because everyone is promoting AI in their products," says Dogan Gursoy, a regents professor of hospitality business management at Washington State and one of the study's authors. "But apparently it has a negative effect, not a positive one." In multiple experiments, involving different people, the researchers split participants into two groups of around 100 each. One group read ads for fictional products and services that featured the terms "artificial intelligence" or "AI-powered," while the other group read ads that used the terms "new technology" or "equipped with cutting-edge technologies." In each test, members of the group that saw the AI-related wording were less likely to say they would want to try, buy or actively seek out any of the products or services being advertised compared with people in the other group. The difference was smaller for items researchers called low risk — such as a television and a generic customer-service offering... Meanwhile, a separate, forthcoming study from market-research firm Parks Associates that used different methods and included a much larger sample size came to similar conclusions about consumers' reaction to AI in products. "We straight up asked consumers, 'If you saw a product that you liked that was advertised as including AI, would that make you more or less likely to buy it?' " says Jennifer Kent, the firm's vice president of research. Of the roughly 4,000 Americans in the survey, 18% said AI would make them more likely to buy, 24% said less likely and to 58% it made no difference, according to the study. "Before this wave of generative AI attention over the past couple of years, AI-enabled features actually have tested very, very well," Kent says.
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