How to Rebuild Consumer Trust and Emotional Engagement in AI-Powered Offerings and Alleviate Scepticism

As with many emerging technologies that are not fully understood but promise transformative change, consumers often express concerns about the ethics and potential human impact. Powered by AI is a line most offerings are born with as consumers expect the best of everything. Generative AI capabilities are embedded in most platforms, tools and everyday apps that people use: Adobe Photoshop, Google’s Gemini , Microsoft, Samsung’s Galaxy and the list is growing everyday.

Half of global companies are experimenting with customer-facing generative AI. While consumers naturally struggle to trust AI- powered offerings, despite these apprehensions, most of these sceptics found themselves using and appreciating generative AI in 2024, often without even realizing it. Whether consumers are aware of it or not, generative AI is integrating into people’s lives, becoming a subtle yet pervasive presence.

Recent research indicates that the term “artificial intelligence” in marketing contexts is prompting consumers to reassess their perceptions of products negatively. A comprehensive study involving 1,000 U.S. adults found that the appeal of products and services diminished significantly when labelled as AI-powered. This trend suggests a potential backlash against the technology and highlights issues related to consumer trust and emotional engagement with AI-powered offerings.

The study targeted a diverse group of participants, reflecting the general population’s sentiments towards the role of AI in consumer products. Researchers explored how different demographic segments responded to AI integration, focusing on the emotional and psychological factors influencing purchasing decisions. According to Mesut Cicek, a clinical assistant professor of marketing at Washington State University, the connection between emotional trust and consumer choices is critical. As awareness of AI capabilities grows, skepticism appears to increase.

Findings revealed that products featuring AI in descriptions were consistently less favored than those without such references. For instance, interest in purchasing a smart television labeled “AI-enhanced” declined notably compared to one that did not emphasize AI. This negative sentiment was particularly pronounced in high-risk purchases, such as electronics or medical devices, where consumers expressed heightened anxiety regarding potential monetary losses or safety concerns.

In response to these insights, experts advise marketers to shift their strategies. Instead of highlighting AI capabilities, they should focus on detailing the features and genuine benefits of products to cultivate a more favourable consumer response and mitigate negative perceptions tied to AI.

Offerings should use alternative terminology to enhance consumer engagement. Phrases such as “powered by AI” may not resonate with consumers, especially if they emphasize results rather than the underlying technology. By articulating how products improve user experience or address specific problems, brands can pivot the narrative from technology to tangible benefits.

Parallel research highlights similar apprehensions concerning generative AI in media. The study indicated that a meaningful percentage of respondents reported decreased interest in content across various mediums—films, music and social media—upon learning that the content was generated using AI technology. This data shows a broader unease surrounding AI-generated materials.

Interestingly, users frequently interacting with generative AI tools tend to harbour more positive sentiments towards AI-generated content. This divergence confirms a split consumer landscape: one side remains sceptical, while another embraces the direct benefits offered by AI.

According to Forrester’s December 2023 Consumer Pulse Survey , consumers recognize the utility of generative AI for enhancing access to information and learning experiences while remaining divided on trusting AI-generated content. The survey showed that although 50% of participants acknowledged the convenience provided by AI, only 29% were willing to trust information sourced from it.

Thomas Husson, Forrester’s principal analyst, emphasizes growing concerns surrounding the ethical implications and societal impacts of AI. He suggests that despite these apprehensions, many consumers will continue to engage with generative AI technologies, often without realizing it, as they become integral to daily life.

Challenges in AI-Powered Offerings

Despite its advantages, AI-powered offerings faces several challenges. Privacy concerns arise from the extensive use of consumer data, and there is fear that AI might replace human jobs. Ethical considerations, such as the potential for biased decision-making, also pose significant hurdles.

Rebuilding Consumer Trust in AI-Powered Offerings

Transparency and Impact

To rebuild trust, brands must be transparent about how AI is used in their processes. Consumers should understand how their data is used and how AI-driven decisions are made. For example, explaining how product recommendations are generated can help demystify AI and build consumer confidence.

Ethical AI Development

Developing AI systems that are fair and free from bias is crucial for maintaining trust. Brands should implement ethical guidelines in AI development, ensuring that algorithms are designed to be impartial and beneficial for all consumers.

Data Privacy and Security

Protecting consumer data is paramount. Brands must adhere to regulations like the GDPR and demonstrate a commitment to data privacy. Clear communication about data handling practices can alleviate consumer fears and build trust.

Human-AI Collaboration

Emphasizing the collaborative role of AI and humans can help dispel fears of AI replacing human workers. Brands should position AI as a tool that enhances human creativity and decision-making, rather than as a replacement.

Ongoing Engagement and Education

Educating consumers about AI’s benefits and limitations is essential for re-building consumer trust. Brands can host workshops, create educational content and maintain open lines of communication to engage consumers and address their concerns.

AI offers tremendous potential for enhancing branding efforts, but rebuilding consumer trust is essential for its long-term success. By prioritizing transparency, ethical development, data security and human collaboration, brands can leverage AI’s power while maintaining consumer confidence in their offerings. As AI continues to evolve, its role in branding will only grow, making trust a crucial component of future branding strategies.

As the consumer landscape surrounding artificial intelligence is characterized by distrust and scepticism, companies must prioritize clear communication of product benefits over ambiguous AI jargon. Enhancing consumer understanding and comfort with technology is essential for fostering a positive relationship with AI in the marketplace.

Looking ahead, questions arise regarding whether increasing awareness about AI will lead to a more favourable consumer attitude toward related products and what steps brands can take to rebuild trust in AI-driven offerings . The way forward may significantly influence marketing strategies in a technology-driven landscape.

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