Commentary

AI Paranoia: What Consumers Fear About The New Technology

Consumers distrust generative AI more than other digital tools, judging by a new study by Kearney Consumer Institute: "Armageddon or AI-Get-On: Can AI Regenerate Consumers’ Trust In Brands?"

Of the individuals polled, 44% do not usually trust generative AI. 

In contrast, 32% apiece say the same about personal AI assistants, social media and online forums. Only 5% generally distrust the internet and websites.  

Overall, most people are optimistic but wary. 

Both U.S. and U.K. consumers all worry about: 

  1. The loss of human connection 
  2. Data privacy
  3. Losing control/AI taking over the world 

But they also feel that AI could improve their lives in these ways:

  1. Faster customer service 
  2. Lower the cost of products or services 
  3. Create products more efficiently

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Consumers say they trust a human more in these instances. In no case do they trust AI more. 

  • Ordering food—37%
  • Learning new skill (e.g., cooking)—48%
  • Customer service—50%
  • Travel agent—50% 
  • Social media influencer—52% 
  • Financial advisor—61%
  • Medical professional—78% 
  • Therapist—79% 

Roughly half of consumers across geographies have tried Generative AI.  

The study notes that earning consumers’ trust requires meeting expectations and mediating concerns. 

On the benefit side, AI reduces friction. It increases the efficiency of transactions and shopping experience.  

Also, it leads to improved personalization and curation through superior algorithms.  

But brands have to be worry about these consumer trust-busters: 

  • Consumers may get frustrated, if they cannot get to a real person or are asked to change their behavior.
  • Data usage can quickly shift from helpful to invasive.  

Here are two “Brand Watchouts:”

  • Not everything that can be automated should be.  
  • Additional data points may not improve without knowing the “why” behind the data. 

In general, people trust the following, in this order: 

  • Family
  • Friends and coworkers
  • Technology 
  • Brands and businesses
  • Journalists 
  • Media 
  • Influencers and celebrities
  • Government

Kearney Institute surveyed 7,000 consumers worldwide. 

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