New Study Claims Using Labels Like ‘Artificial Intelligence’ Could Unintentionally Hurt Companies’ Sales

A new study by Washington State University is shedding light on the harmful impacts of using certain terms on companies’ products promotion.

As per the report, the label AI or Artificial Intelligence might sound cool to some but that may negatively affect sales, especially when the company promotes offerings with these words.

As seen in the study, research experts carried out a series of surveys featuring close to 1,000 adults in America to better study the relationships between AI disclosure and the behavior of consumers.

The findings showed how many offerings said to be curated with AI were not as popular. This news comes from a leading author who is also a marketing professor at a top educational institution.

Whenever the term AI is used, it displays a lack of emotional trust, and that in turn gives rise to a decline in purchases. There is also a debate linked to emotional trust that again plays a crucial role in terms of how customers perceive AI-related products.

Such experiments entail queries and product descriptions across a wide array of service categories. For instance, one spoke about identical descriptions of smaller TVs. The only difference here had to do with it being included in one group but deleted from another.

The one that had AI included as a part of their description of the product mentioned how they weren’t as likely to make the TV purchase.

Meanwhile, experts are talking about how negative replies related to disclosing AI were greater for those products categorized to be high risk. For instance, a certain good or service that comes with user anxiety, uncertainty, and expensiveness. Did we mention medical products or financial goods?

Remember, failure comes with its own share of risk that could entail monetary loss and danger to safety so when you include controversial terms like AI, the likelihood of making a purchase becomes even less, the study adds.

The authors claim they tested the products across a host of categories and the results they attained were very similar. It’s a major disadvantage to entail such terms in the descriptions. Hence, studies like these are really giving producers and sellers more insights on what to add and what to exclusive in listings.

Remember, marketers can make or break the deal. All they need to realize is how to enhance strategies that better suit the client’s end of things. To focus more on buzzwords is so important as is making sure the buyer feels safe and satisfied that their investment will be worth it in the end.

Therefore, the take-home message is to avoid AI-related terminology if you wish to attain profits in the long run. Do you agree?

Image: DIW-Aigen

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