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Home Marketing B2C Marketing

Consumers are underwhelmed by AI experiences

November 12, 2024
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Many consumers just aren’t that into AI-powered experiences. Only 29% imagine that such experiences have met their expectations, in keeping with a brand new study by marketing consultancy Lippincott. And 40% are skeptical about AI’s future role in improving their experiences with brands.

Experience with AI. It’s not that customers are out of the loop — 61% have tried AI-powered tools either as customers or of their skilled lives, in keeping with the study.

Only 39% said they’ve never tried using AI, 1% of which admit they’ve never heard of those tools.

Expectations. Fifty-seven percent of the nearly 12,000 respondents agreed with the next statement: “I expect brands to make use of AI to enhance their products, services and customer experiences.”

A slim majority of those same respondents aren’t overly impressed when brands use AI. Fifty-two percent agreed with the statement: “I don’t perceive brands using AI as any more revolutionary than those who don’t.”

Paying for AI. Most customers using services or products that provide AI-powered tools don’t expect to pay for these add-ons — only 7% are willing to pay more. Fifty-seven percent expect to pay the identical price with or without AI, and 36% expect to pay less.

Trust. Brands are experimenting with AI agents and other tools, and best practices early on in these experiments dictate that brands should clarify to customers that AI is getting used.

When customers think they’ve been tricked, many don’t like that. Forty-six percent of respondents said they trust the brand less in the event that they learned AI was getting used after they thought these services were coming from a human.

Dig deeper: How genAI can fill the trust gap for brands

Skeptics of all ages. The survey also asked consumers about specific brands’ uses of AI. In these individual cases, the typical trust was low, and not only amongst older consumers — digital natives are skeptical, too.

Here’s the typical trust rating across all brands by age:

  • 65+: 18% agreed with “I trust this brand to make use of AI tools.”
  • 55-64: 21%.
  • 45-54: 24%.
  • 35-44: 30%.
  • 25-34: 28%.
  • 18-24: 24%.

Dig deeper: Why generational stereotypes are failing marketers and tips on how to move past labels

Why we care. You can’t blame brands for trying. In fact, looking beyond the lukewarm reception to early marketing AI adopters, one can see consumers are watching this development closely. And they’ve high expectations for what AI-powered tools can accomplish. So there’s a giant upside for brands that keep plugging away and earn consumers’ trust with superior experiences in a transparent way.

The post Consumers are underwhelmed by AI experiences appeared first on MarTech.

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