The power of AI to turn people off?

According to one study, it’s true. Even as companies are pouring billions into AI, products labeled “Powered by AI” are lowering customers’ intention to buy. The Journal of Hospitality Marketing & Management fielded the research and found among four large consumer goods and services categories, “in every single case, the intention to buy or use the product or service was significantly lower when AI was mentioned in the description.”

The study’s authors surmise that it’s “fear of the unknown,” and concerns about privacy. Lack of transparency sours consumer perceptions about brands they formerly trusted. And, in the business of brand equity, trust is paramount.

What’s the solution? To ease their fears, when you list “AI-powered,” tell consumers why and how this helps them.