The Journal of Hospitality Marketing & Management Reveals Key Strategies in Maintaining Consumer Trust Around AI
A recent study published in the Journal of Hospitality Marketing & Management in June reveals that labeling a product as using AI can reduce a customer’s willingness to purchase it. The researchers surveyed participants across various age groups, presenting them with identical products, differing only in description: one as “high tech” and the other as utilizing AI, or artificial intelligence.
According to its abstract,
The findings of the study indicated that the inclusion of the “Artificial Intelligence” term in descriptions of products and services decreases purchase intention, and that emotional trust mediates this relationship. Findings further suggested that the negative mediating effect of emotional trust on the impact of AI term on purchase intention was stronger for high-risk products, compared to low-risk products. These findings provide valuable insights for both academia and practitioners, leading them to develop more effective and appealing strategies in the applications of AI.”
Despite the rapid advancement of AI in recent months, the study underscores consumers’ hesitance to embrace AI in their everyday lives, diverging significantly from the enthusiasm seen in big tech innovations.
“We looked at vacuum cleaners, TVs, consumer services, health services,” explained Dogan Gursoy, one of the study’s authors and a professor of Hospitality Business Management at Washington State University, in an interview with CNN. “In every single case, the intention to buy or use the product or service was significantly lower whenever we mentioned AI in the product description.”
The research explored how participants perceived products labeled as “low risk,” such as household appliances using AI, and “high risk,” like self-driving cars, AI-driven investment services, and medical diagnostic tools. Although the rejection rate was higher for high-risk products, most participants were unwilling to purchase items from either group.
The study identifies two types of trust influencing consumers’ perceptions of AI-powered products. Cognitive trust relates to the expectation that AI, as a machine, should be free from human error. When AI fails, this trust can be quickly undermined. For instance, Google faced criticism earlier this year when its AI-generated search overview tool, intended to summarize search results, provided confusing or inaccurate information, prompting the company to scale back some features.
Gursoy notes that consumers often rely on emotional trust due to limited understanding of AI’s inner workings, leading to subjective judgments about the technology. “One of the reasons why people are not willing to use AI devices or technologies is fear of the unknown,” he stated. “Before ChatGPT was introduced, not many people had any idea about AI, but AI has been running in the background for years and it’s nothing new.”
Artificial intelligence has been integrated into familiar digital services long before ChatGPT gained public attention in 2022, from autocorrect features on smartphones to Netflix’s movie recommendation algorithm. Gursoy also highlights the impact of AI’s portrayal in popular culture, noting that Hollywood films often depict robots as villains, shaping public perception. “Way before people even heard about AI, those movies shaped people’s perception of what robots that run by AI can do to humanity,” he added.
Concerns about AI’s handling of personal data further influence consumer perception. Issues regarding data privacy have dampened excitement about AI tools designed to enhance user experience, as governments continue to navigate AI regulation. “People have worries about privacy. They don’t know what’s going on in the background, the algorithms, how they run, that raises some concern,” Gursoy noted.
Gursoy warns that this lack of transparency could damage consumer trust in established brands. He advises companies to avoid using “AI” as a mere buzzword without explaining its capabilities. “The most advisable thing for them to do is come up with the right messaging,” he suggested. “Rather than simply putting ’AI-powered’ or ’run by AI,’ telling people how this can help them will ease the consumer’s fears.”
