Study Reveals ‘AI-Powered’ Labeling May Not Enhance Product Appeal

A recent study by Irrational Labs, involving 767 participants, examined the impact of labeling products as “AI-powered” on consumer perceptions. The findings indicate that such explicit AI labeling does not significantly boost expectations of product performance, willingness to pay, or trust among users. In some cases, terms like “generative AI” even led to lower performance expectations, possibly due to growing skepticism from past experiences with underperforming AI tools.

The research suggests that consumers prioritize clear, tangible benefits over technical jargon. Emphasizing how a product addresses user needs effectively resonates more with customers than highlighting its AI capabilities. For instance, focusing on outcomes like “write three times faster” or “save 30 minutes a day on scheduling” can be more compelling than simply stating the product is AI-driven.

These insights imply that companies should reconsider their marketing strategies, focusing less on AI terminology and more on the practical advantages their products offer. This approach aligns with user psychology, emphasizing the direct benefits to the consumer rather than the underlying technology.

Source: Growth Unhinged, https://www.growthunhinged.com/p/ai-messaging-study