[ExI] Advertising AI is bad for marketing

[Stuart LaForge]

According to this study, using the term AI or artificial intelligence in 
a product description makes people less likely to buy the product even 
for technological devices. The study found that people emotionally 
distrust AI.

https://news.wsu.edu/press-release/2024/07/30/using-the-term-artificial-intelligence-in-product-descriptions-reduces-purchase-intentions/

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Companies may unintentionally hurt their sales by including the words 
“artificial intelligence” when describing their offerings that use the 
technology, according to a study led by Washington State University 
researchers.

In the study, published in the Journal of Hospitality Marketing & 
Management, researchers conducted experimental surveys with more than 
1,000 adults in the U.S. to evaluate the relationship between AI 
disclosure and consumer behavior.

The findings consistently showed products described as using artificial 
intelligence were less popular, according to Mesut Cicek, clinical 
assistant professor of marketing and lead author of the study.

“When AI is mentioned, it tends to lower emotional trust, which in turn 
decreases purchase intentions,” he said. “We found emotional trust plays 
a critical role in how consumers perceive AI-powered products.”

In the experiments, the researchers included questions and descriptions 
across diverse product and service categories. For example, in one 
experiment, participants were presented with identical descriptions of 
smart televisions, the only difference being the term “artificial 
intelligence” was included for one group and omitted for the other. The 
group that saw AI included in the product description indicated they 
were less likely to purchase the television.

Researchers also discovered that negative response to AI disclosure was 
even stronger for “high-risk” products and services, those which people 
commonly feel more uncertain or anxious about buying, such as expensive 
electronics, medical devices or financial services. Because failure 
carries more potential risk, which may include monetary loss or danger 
to physical safety, mentioning AI for these types of descriptions may 
make consumers more wary and less likely to purchase, according to 
Cicek.

“We tested the effect across eight different product and service 
categories, and the results were all the same: it’s a disadvantage to 
include those kinds of terms in the product descriptions,” Cicek said.

Cicek said the findings provide valuable insights for companies.

“Marketers should carefully consider how they present AI in their 
product descriptions or develop strategies to increase emotional trust. 
Emphasizing AI may not always be beneficial, particularly for high-risk 
products. Focus on describing the features or benefits and avoid the AI 
buzzwords,” he said. In addition to Cicek, the study included co-authors 
Dogan Gursoy, professor of hospitality at WSU, and Lu Lu, associate 
professor at Temple University’s Fox School of Business and Management.
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So people want smart phones and smart TVs, just not "artifically 
intelligent" phones and TVs. That is . . . strange.

Stuart LaForge