AI disclosure may deter sales, new study finds

New York, July 30 (IANS) Including the term "artificial intelligence" in product descriptions may inadvertently reduce sales, a study led by Washington State University (WSU) researchers suggests.

Published in the Journal of Hospitality Marketing & Management, the study surveyed over 1,000 US adults to investigate the impact of AI disclosure on consumer behaviour.

The findings consistently showed that products labelled with "artificial intelligence" were less appealing, according to Mesut Cicek, Clinical Assistant Professor of Marketing and the study's lead author.

"When AI is mentioned, it tends to lower emotional trust, which, in turn, decreases purchase intentions," Cicek said.

"We found emotional trust plays a critical role in how consumers perceive AI-powered products."

The study involved presenting participants with descriptions of various products and services, some explicitly mentioning AI and others not. For instance, in one experiment, participants were shown identical descriptions of smart televisions, with the term "artificial intelligence" included in one group's description. The group exposed to the AI mention was less likely to express interest in purchasing the television. The negative response to AI disclosure was more pronounced for "high-risk" products and services, such as expensive electronics, medical devices, or financial services. These are areas where potential failures could result in significant financial loss or safety concerns, making consumers more cautious, 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," he noted.

The study suggests that companies should carefully consider how they present AI in their marketing. "Marketers should focus on describing the features or benefits and avoid the AI buzzwords, especially for high-risk products," Cicek advised.

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