Using the term ‘artificial intelligence’ in product descriptions reduces purchase intentions

Companies may be inadvertently hurting their sales by including the phrase “artificial intelligence” when describing their offerings that use the technology, according to a study by researchers at Washington State University.

In the study, Published In the Journal of Hotel Marketing and ManagementThe researchers conducted pilot surveys with more than 1,000 adults in the United States to assess the relationship between AI detection and consumer’s behaviour.

The results consistently showed that products described as using AI were less popular, said Mesut Cesik, clinical assistant professor of marketing and lead author of the study.

“When AI is mentioned, it tends to lower emotional trust, which in turn lowers purchase intentions. We found that emotional trust plays a critical role in how consumers perceive AI-powered products,” he said.

In the experiments, the researchers included questions and descriptions across a variety of product and service categories. For example, in one experiment, participants were shown identical descriptions of smart TVs, with the only difference being the term “artificial intelligence“AI” was included in the product description for one group and omitted for the other. The group that saw AI included in the product description indicated they were less likely to buy the TV.

The researchers also discovered that negative reaction AI detection was strongest for “high-risk” products and services, which are products and services that people typically feel uncertain or anxious about purchasing, such as expensive electronics, Medical devices or Financial Services.

Since failure carries greater potential risks, which could include financial loss or risk to physical safety, mentioning AI in these types of descriptions could make consumers more cautious and less likely to buy, according to Žižek.

“We tested the effect across eight different product and service categories, and the results were all the same: it’s a shame to include this type of term in product descriptions,” said Cicek.

The results provide valuable insights for businesses, Cicek said.

“Marketers need to carefully consider how to present AI in their product descriptions or develop strategies to increase emotional trust. Focusing on AI may not always be helpful, especially for high-risk products. Focus on describing features or benefits and avoid AI-related buzzwords,” he said.

In addition to Cicek, the study included co-authors Dogan Gursoy, a professor of hospitality at Washington State University, and Lu Lu, an associate professor at Temple University’s Fox School of Business.