Marketers’ primary job is to know what the customer wants. It’s simple, but not easy. When Jim Stengel was CMO of Procter & Gamble, he told me, “You can never know the customer too well.” Jim knew his customers well enough that he turned Swiffer (an upgraded dust rag) into a multi-billion dollar brand platform.
If there is one thing the public has made clear, it’s that they are not impressed by AI in their products. The most recent evidence: A study of 1,000 people found products described as having AI were consistently less popular than those that weren’t.
“When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions,” said lead author and Washington State University clinical assistant professor of marketing Mesut Cicek in a statement. “We found emotional trust plays a critical role in how consumers perceive AI-powered products.”
Dig deeper: 67% of marketers say lack of training is primary barrier to AI adoption
AI means less likely to purchase
For example, researchers found people were far less likely to purchase a smart television when its description included “artificial intelligence.” A separate group was far more likely to buy it when the words were omitted from an identical description.
The effect was even greater with high-risk/big-ticket purchases like expensive electronics or medical devices. Researchers said this could be because consumers are more wary of monetary loss or danger to physical safety.
This is not an outlier study.
So you can imagine my reaction when the following showed up in an email this morning: “Startups and brands must take steps to demystify AI to consumers (and therefore not have it be such a turnoff of a term/so jargony) and reduce the black box effect — explaining it in simplified terms, and making it accessible/empowering for everyone to understand and use. “
Why? Why not listen to what consumers are saying?
Listen to consumers
For consumers, AI is the latest version of the Internet of Things. It is a technology added to products even when it provides little or no value for the consumer. Why are there internet-connected refrigerators, toothbrushes or dishwashers? I have seen a mirror that could not be used because it needed to reboot. (I will spare you my rant about IoT locks and lighting systems.)
While there are useful IoT products, a lot seem to exist so manufacturers can collect data on the users.
Likewise, consumers dislike AI because it is something the company thinks they need and not anything they want. Oral-B just released an AI toothbrush to tell you what spots you missed. There are AI grills promising steaks cooked exactly as you want them. There are AI coffee makers, mattresses, pillows, baby monitors, snow blowers, “dog companion robots,” and far too many more.
Let’s all take a breath and remind ourselves what generative AI is. It’s a stochastic parrot that answers questions based on what its data set says is the most frequently used answer in similar circumstances. It is such an inherently flawed product that companies warn people not to trust its output. I am reminded of this every time I open up Facebook and the AI asks me things like, “Do you want to know more about light?”
The solution to consumers’ dislike of AI is not “explaining it in simplified terms, and making it accessible/empowering for everyone to understand and use.”
Consumers know enough about AI to know it doesn’t interest them. According to Forrester’s March 2024 Consumer Pulse Survey, only 31% of U.S. consumers have used genAI; 58% have heard of genAI but have never used it. Keep in mind, U.S. consumers are way ahead of those in other countries when it comes to using AI.
Demystify AI? There’s no mystery. Consumers know companies want consumers to want AI. Some may even know the companies pushing this idea are working to find use cases for AI in their own businesses.
What brands should do is make things consumers want. If it uses AI, that’s nice, but consumers don’t care about it any more than they do about what computer chips are in their cars.
Make things people want. Simple, but not easy.
The post For consumers, AI is the new IoT appeared first on MarTech.
**AI Emerges as the Next Big Trend for Consumers, Following IoT**
In the ever-evolving landscape of technology, the Internet of Things (IoT) has been a dominant force, transforming the way consumers interact with their devices and the world around them. From smart thermostats and connected refrigerators to wearable fitness trackers and voice-controlled assistants, IoT has seamlessly integrated into daily life, creating a more connected and convenient world. However, as technology continues to advance, a new trend is emerging that promises to be even more transformative: Artificial Intelligence (AI).
AI, once the stuff of science fiction, is rapidly becoming an integral part of the consumer experience. From personalized recommendations on streaming platforms to virtual assistants that can manage our schedules, AI is making its presence felt in nearly every aspect of our lives. As AI technology continues to evolve, it is poised to become the next big trend for consumers, following in the footsteps of IoT.
### The Rise of AI in Consumer Technology
AI is not a new concept, but recent advancements in machine learning, natural language processing, and data analytics have propelled it to the forefront of consumer technology. AI’s ability to analyze vast amounts of data and learn from it allows for the creation of highly personalized and intuitive experiences. This has led to the development of a wide range of AI-powered products and services that are reshaping the consumer landscape.
One of the most visible examples of AI’s impact on consumers is the rise of virtual assistants like Amazon’s Alexa, Apple’s Siri, Google Assistant, and Microsoft’s Cortana. These AI-driven platforms have become household names, enabling users to perform tasks such as setting reminders, controlling smart home devices, and even ordering groceries with simple voice commands. The convenience and efficiency offered by these virtual assistants have made them indispensable tools for millions of consumers worldwide.
Another area where AI is making significant strides is in the realm of personalized content and recommendations. Streaming services like Netflix, Spotify, and YouTube use AI algorithms to analyze user preferences and viewing habits, delivering tailored content that keeps users engaged. Similarly, e-commerce platforms like Amazon and Alibaba leverage AI to provide personalized shopping experiences, suggesting products based on past purchases and browsing history.
### AI in Everyday Life: Beyond the Screen
While AI’s influence is most apparent in digital services, its impact extends far beyond the screen. In the automotive industry, AI is driving the development of autonomous vehicles, which have the potential to revolutionize transportation. Companies like Tesla, Waymo, and Uber are investing heavily in AI-powered self-driving technology, promising safer and more efficient travel in the near future.
In the healthcare sector, AI is being used to improve diagnostics, treatment planning, and patient care. AI algorithms can analyze medical images, detect anomalies, and even predict disease outbreaks, enabling healthcare professionals to make more informed decisions. Wearable devices equipped with AI are also helping consumers monitor their health in real-time, providing insights into everything from heart rate and sleep patterns to stress levels and physical activity.
AI is also making its way into the home, with smart appliances that can learn and adapt to user preferences. For example, AI-powered refrigerators can track food inventory, suggest recipes based on available ingredients, and even place orders for groceries when supplies run low. Similarly, AI-driven vacuum cleaners can map out the layout of a home and optimize cleaning routes, making household chores more efficient and less time-consuming.
### The Ethical and Privacy Considerations
As AI becomes more pervasive in consumer technology, it raises important ethical and privacy considerations. The vast amounts of data required to train AI systems often include sensitive personal information, leading to concerns about data security and privacy. Consumers are increasingly aware of the potential risks associated with AI, such as data breaches, surveillance, and algorithmic bias.
To address these concerns, companies and regulators are working to establish guidelines and standards for the ethical use of AI. Transparency, accountability, and fairness are key principles that must be upheld to ensure that AI benefits society as a whole. Consumers, too, have a role to play in safeguarding their privacy by being mindful of the data they share and understanding how it is used.
### The Future of AI in Consumer Technology
As AI continues to advance, its potential applications in consumer technology are virtually limitless. The next wave of AI innovations is likely to include even more sophisticated virtual assistants, smarter home automation systems, and more personalized and immersive entertainment experiences. AI could also play a crucial role in addressing global challenges, such as climate change, healthcare access, and food security, by enabling more efficient and sustainable solutions.
However, the widespread adoption of AI will also require careful consideration of its societal impact. As AI systems become more autonomous and capable, questions about job displacement, inequality, and the ethical implications of AI decision-making will need to be addressed. Ensuring that AI is developed and deployed in a way that benefits all of humanity will be a critical challenge for the coming years.
### Conclusion
AI is rapidly emerging as the next big trend for consumers, following
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