Study: AI in Product Descriptions Lowers Sales by 20%

TLDR:

• What happened: Washington State University study finds that using the term “artificial intelligence” in product descriptions reduces purchase intentions.
• Why it matters: This insight suggests companies should reconsider how they present AI in their marketing to avoid negatively impacting sales, especially for high-risk products.

Washington State University researchers have found that including the term “artificial intelligence” in product descriptions can reduce consumer purchase intentions. The study, published in the Journal of Hospitality Marketing & Management, involved experimental surveys with over 1,000 U.S. adults to explore the relationship between AI disclosure and consumer behavior.

The findings revealed that products described as using artificial intelligence were consistently less popular. Mesut Cicek, clinical assistant professor of marketing and lead author of the study, explained, “When AI is mentioned, it tends to lower emotional trust, which in turn decreases purchase intentions. We found emotional trust plays a critical role in how consumers perceive AI-powered products.”

The experiments covered various product and service categories. For instance, in one experiment, participants were given identical descriptions of smart televisions, with the only difference being the inclusion of the term “artificial intelligence” for one group. The group exposed to the AI term showed a lower likelihood of purchasing the television.

The negative response to AI disclosure was even more pronounced for high-risk products and services, such as expensive electronics, medical devices, or financial services. These are categories where consumers typically feel more uncertain or anxious about potential risks. “We tested the effect across eight different product and service categories, and the results were all the same: it’s a disadvantage to include those kinds of terms in the product descriptions,” Cicek noted.

Cicek emphasized that these findings offer valuable insights for companies. “Marketers should carefully consider how they present AI in their product descriptions or develop strategies to increase emotional trust. Emphasizing AI may not always be beneficial, particularly for high-risk products. Focus on describing the features or benefits and avoid the AI buzzwords,” he advised. The study also included contributions from Dogan Gursoy, professor of hospitality at WSU, and Lu Lu, associate professor at Temple University’s Fox School of Business and Management.