Consumer concerns rise over AI in brand communications, study reveals

Consumer Concerns Rise Over AI in Brand Communications, Study Reveals

In a revealing study conducted by Exclaimer, a prominent email signature management platform, the impact of artificial intelligence (AI) on consumer perceptions of brand communications has been brought to light. The “Personal Touch” study surveyed 1,000 individuals across four generational demographics, ranging from ages 16 to over 54, to investigate the repercussions of AI utilisation in email communications.

Findings from the study indicate a significant portion of consumers are wary of AI-generated emails, a sentiment that could potentially drive them to consider competitor brands. Specifically, 79% of respondents indicated they might switch to a different brand if all company interactions were AI-based. Generation Z leads this tendency with 85% expressing a willingness to change brands due to AI use, followed by Millennials at 80%, Gen X at 77%, and Baby Boomers at 75%.

The study further reveals that over half of the surveyed individuals (55%) view AI-generated communications negatively, with 18% noticing a detrimental impact on the quality of brand messaging. The leading cause cited for these perceptions is a perceived lack of authenticity in AI-driven emails, which 41% of participants believe detracts from a brand’s genuineness and transparency. Furthermore, 27% of respondents felt disconnected from brands employing AI in their email interactions.

Consumer attitudes towards AI vary significantly by industry, with some sectors facing more resistance than others. The healthcare industry tops the list, with 52% of participants expressing the belief that this sector should refrain from using AI-generated communications. This sentiment is particularly strong among Gen X (61%) and Baby Boomers (51%). The financial industry follows closely, with 18% of respondents opposing AI-driven communications within this sector. Concerns in finance are notably more pronounced among older generations, with 26% of Baby Boomers expressing apprehensions compared to 13% of Gen Z.

Contrastingly, the retail and technology sectors experience less resistance to AI, with only 6% and 4% of consumers, respectively, opposing AI-generated communications in these fields. Interestingly, the survey noted that 32% of consumers find AI beneficial for generating personalised discounts and offers, a sentiment similarly held across all age groups.

Exclaimer’s Chief Marketing Officer, Carol Howley, commented on the findings, highlighting the ongoing concerns over privacy and security associated with AI in email communications. Howley stressed the importance of maintaining a human connection to foster trust with consumers, particularly in sensitive areas such as health and finance.

Despite the reservations, there is an acceptance of AI within specific industries. Howley noted that businesses in retail and technology should cautiously implement AI, ensuring the technology supports rather than undermines customer relationships. She also remarked on the importance of subtlety and human-like interactions in AI communications, which could enhance rather than detract from the consumer experience.

This study sheds light on the evolving landscape of consumer-brand interactions in the digital age, illustrating the delicate balance brands must strike when integrating AI into their communication strategies. As industries continue to navigate this terrain, the insights from Exclaimer’s research underscore the nuanced preferences of today’s consumers across various sectors.

Source: Noah Wire Services