A study by researchers at Washington State University found that including the term “artificial intelligence” in product descriptions may inadvertently harm sales.

The research, detailed in the Journal of Hospitality Marketing & Management, involved experimental surveys with over 1,000 US adults to explore how transparency about AI usage impacts consumer behaviour.

The results consistently indicated that products labelled as incorporating artificial intelligence were less appealing to consumers, said Mesut Cicek, clinical assistant professor of marketing and the study’s lead author.

“Mentioning AI seems to diminish emotional trust, which, in turn, reduces the likelihood of purchase,” Cicek noted. He highlighted that emotional trust is crucial in shaping how consumers view AI-enabled products.

The research team used varied questions and descriptions across different product and service sectors during the experiments. In one instance, participants reviewed identical bright television descriptions, with the key distinction being the inclusion or exclusion of “artificial intelligence” in the text. Those who encountered the term were less inclined to buy the television.

The study also found that the adverse reaction to AI mentions was more pronounced for “high-risk” items—products or services that typically evoke higher levels of uncertainty or concern, such as costly electronics, medical devices, or financial services. The potential for significant risks, including economic loss or threats to physical safety, means referencing AI in such product descriptions can make consumers more apprehensive and less likely to purchase, Cicek explained.

“We examined the impact across eight different product and service categories, and the outcome was uniform: it’s disadvantageous to use such terms in product descriptions,” he added.

Cicek’s findings offer important insights for businesses. “Marketers need to think carefully about how they present AI in their product descriptions or devise strategies to build emotional trust. Highlighting AI might not always be advantageous, especially for high-risk items. It’s better to focus on the features or benefits and steer clear of AI buzzwords,” he advised.

More information: Mesut Cicek et al, Adverse impacts of revealing the presence of “Artificial Intelligence (AI)” technology in product and service descriptions on purchase intentions: the mediating role of emotional trust and the moderating role of perceived risk, Journal of Hospitality Marketing & Management. DOI: 10.1080/19368623.2024.2368040

Journal information: Journal of Hospitality Marketing & Management Provided by Washington State University