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AI-focused marketing risks eroding trust, says new research

Yesterday

New research indicates that consumers are deterred by companies that promote artificial intelligence capabilities more than human expertise.

The study, led by Hector Gonzalez Jimenez, Professor of Marketing at ESCP Business School, alongside Darina Vorobeva, Diego Costa Pinto, and Nuno António from NOVA IMS, found a correlation between aggressive AI marketing and reduced customer engagement and trust.

By analysing public sentiment in more than 8,600 social media posts from Amazon, Google, and Apple, as well as conducting three survey-based experiments involving 700 consumers, the researchers noted a clear trend. When companies emphasised the AI-powered aspects of their services, consumers perceived the messaging as exaggerated and were less inclined to interact with AI solutions.

This perception was particularly pronounced in sectors where personalised, human-like service is expected, such as healthcare and luxury industries. The aversion was also evident in situations involving service failures, including lost or damaged products or bookings, where customers expected more empathetic handling that AI is perceived to lack.

The results indicated that promoting human expertise in marketing campaigns had the opposite effect. Consumers responded more favourably, showing increased trust and engagement. The researchers attribute this response to the perception of human resources as embodying competence, experience, and the ability to deliver quality service.

The study highlights a persistent gap between consumer expectations regarding human-like interactions and the capabilities offered by AI services. Although customers recognise AI's capabilities in analytical and repetitive tasks, their trust in AI remains limited because of its inability to convey emotions or genuine empathy.

Investment in generative AI technology is increasing worldwide, with spending expected to reach USD $644 billion in 2025, up 76.4% from the previous year, according to a forecast by Gartner. Major technology companies in the US have invested heavily in AI promotions, as seen in high-profile advertising campaigns such as Microsoft and Google's USD $7 million Superbowl ads in 2024, and an increase in AI-related adverts during the 2024 Summer Olympics.

The study's findings prompt a note of caution for companies eager to showcase AI capabilities. Over-promoting these technological advancements, the research suggests, may inadvertently undermine consumer trust and engagement.

"Tech giants often present their latest AI-based resources in a manner that can seem exaggerated," said Hector Gonzalez Jimenez, Marketing Professor at ESCP Business School and Co-director of the ESCP Tech Institute. "For example, Google was criticised for its launch of Gemini with a six-minute promotional video which many perceived as mis-leading and overly promotional."

Professor Gonzalez Jimenez further stated, "Companies need to strike a balance between promoting AI-driven innovations and maintaining customer trust. While AI usage is generally more acceptable for repetitive and analytical tasks, humans are preferred for empathy-related tasks."

He added, "Rather than positioning AI as a superior or replacement technology, companies should focus on how AI enhances human capabilities and service outcomes. They should also reassure consumers that when it comes to more sensitive issues, they will be speaking to a human."

The research, published in Psychology & Marketing under the title "Bragging About Valuable Resources? The Dual Effect of Companies' AI and Human Self‐Promotion", concludes that companies should approach AI marketing with transparency and caution to avoid negative perceptions of arrogance and to foster trust among their customer base.

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