Why does AI in product descriptions reduce purchase intentions?

The findings reveal that the inclusion of the AI term can significantly decrease purchase intentions due to its effects on emotional trust and perceived risk.

The impact on purchase intentions

The study conducted six experiments, consistently showing that the inclusion of ‘Artificial Intelligence’ in product descriptions led to lower purchase intentions compared to descriptions without the term. This pattern was observed across various products and services, including televisions, cars, customer services, and refrigerators.

The researchers employed rigorous methodologies, including T-tests, which compare the means of two groups to determine significant differences, and Hayes Process Macro Models, which are used for mediation, moderation, and conditional process analysis, to analyse the data and validate their findings.

Emotional trust as a mediator

A crucial finding of the study is the mediating role of emotional trust. Emotional trust, which extends beyond cognitive trust, is essential for understanding sophisticated technologies like AI, involving a deeper, more intuitive level of trust that significantly influences consumer acceptance. The presence of AI in product descriptions was found to diminish emotional trust, which in turn lowered the likelihood of purchase. This effect was particularly pronounced for high-risk products and services such as AI-powered medical diagnosis tools and autonomous vehicles, which elicited stronger adverse reactions compared to lower-risk items like vacuum cleaners or customer services. High perceived risk amplifies consumer concerns about safety, privacy, and control, which further erodes emotional trust, suggesting that the context in which AI is mentioned plays a crucial role in shaping consumer reactions.

In one experiment, participants were presented with descriptions of a high-tech TV, with one group seeing the term ‘AI-powered’ and the other group seeing ‘new technology’. The AI term led to significantly lower purchase intentions. This pattern was replicated in subsequent experiments using different products, including a car and a customer service description, confirming the mediating role of emotional trust and the negative impact on purchase intentions when AI was mentioned.

Further experiments examined the moderating role of perceived risk. High-risk products like illness diagnosis tools and cars showed a more significant drop in purchase intentions compared to low-risk products when AI was mentioned, underscoring the importance of context and perceived risk in consumer decision-making processes.

Implications for marketers

The findings of this study offer critical insights for marketers involved in decision-making regarding AI-powered products and services. Although the concept of ‘Artificial Intelligence’ is becoming increasingly trendy and popular in today’s technological landscape, it also brings with it uncertainties and apprehensions among consumers. Consequently, the study suggests that using the term ‘Artificial Intelligence’ in marketing campaigns and product descriptions may negatively impact consumer demand.

Marketers could consider using alternative phrases like ‘cutting-edge technology’ or ‘advanced technology’ while emphasising the benefits and features of AI technologies without explicitly mentioning ‘Artificial Intelligence’, potentially enhancing sales and profitability.

Forming partnerships or alliances with companies already trusted by consumers could also be a strategic move and such collaborations might improve consumer demand, as goods and services offered by more reputable firms are often more appealing, making consumers feel more secure and less anxious about using AI-powered products.

Transparency is another key factor. Managers should emphasise transparency regarding their AI-powered products to mitigate privacy concerns and associated risks. This could include clarifications about how their AI-powered product works, outlining its benefits, and providing guidance on personal data protection and privacy assessment.

Future research directions

The study acknowledges certain limitations, such as cultural differences and evolving consumer knowledge about AI. Future research could explore these aspects to provide a more comprehensive understanding of consumer behaviour towards AI-powered products. Furthermore, as AI technology continues to advance and become more integrated into everyday life, consumer perceptions may shift, necessitating ongoing investigation into these dynamics.

So, while AI represents advanced capabilities, its mention in product descriptions can trigger fear and concern among consumers, leading to reduced purchase intentions. Emotional trust and perceived risk play pivotal roles in this dynamic, offering valuable insights for marketers aiming to navigate the complex landscape of AI technology integration. By understanding and addressing these concerns, companies can develop more effective strategies to market AI-powered products and services.