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Study: Customers Don't Actually Like the Term “AI”

A recent study out of the Journal of Hospitality Marketing & Management discovered that labeling a product as “AI” actually reduced a consumer's inclination to purchase it.


The researchers looked at products ranging from vacuum cleaners and televisions to health services and more. “In every single case, the intention to buy or use the product or service was significantly lower whenever we mentioned AI in the product description,” Dogan Gursoy, one of the study's authors and the Taco Bell Distinguished Professor of Hospitality Business Management at Washington State University told CNN.


So, what terminology is better? The researchers found that “high-tech” is looked upon more favorably. This revelation, quite frankly, shocked the Top AI Tools team. But as we took a deeper dive into the reasoning, it makes perfect sense…


People have not yet learned to trust AI.


“One of the reasons people are not willing to use AI devices or technologies is fear of the unknown,” Gursoy told CNN. “Before ChatGPT was introduced, not many people had any idea about AI, but AI has been running in the background for years and it's nothing new.”


That's why our goal here at Top AI Tools is to demystify AI, eliminate that fear of the unknown, and help people master AI and realize that, although it makes a catchy slogan, AI is nowhere near close to mastering or taking over humankind.

HAVE NO FEAR: You don't need to hide or mask your use of AI technology.


For brands marketing their AI-powered products, doing so wouldn't be authentic, and it may only serve to increase consumers' distrust of artificial intelligence.


But it doesn't have to be at the top of your marketing message either. Remember: AI, in itself, is not a benefit... it's a tool.


As marketers, let's get back to Copywriting 101. Your primary marketing copy, from your slogan to your product descriptions and unique selling proposition, should focus on the benefits of your product, not the features or the technology that makes it work.


That AI-powered robot vacuum? It “cleans floors while you sleep,” “inhales dog and cat hair with ease, and “saves time on housework.”


So, your AI-powered chatbot tool…?

  • Increases conversions through personalized product recommendations

  • Saves time and money by streamlining the jobs of customer service reps

  • Elevates the customer experience with 24/7 support


Yes, both of these products use AI to get the job done better than ever before, and that's worth mentioning. But let's get back to basics. Why do people truly need your product? To improve their lives, grow their business, make more money, save time, and so on.


So far, AI has proven to be a valuable tool in achieving these goals (at least, we think it has!). However, using the terms “high-tech” instead of “AI” and replacing vague descriptions with clear, tangible benefits might do more to boost conversions than anything else.


Or, as Gursoy explained, “Rather than simply putting 'AI-powered' or 'run by AI,' telling people how this can help them will ease the consumer's fears.”

FEATURED PROMPTS:

AI Prompts to Enhance Customer Support

While AI-powered chatbots help streamline customer service, the choice to use AI vs. real people to handle customer queries is not an “either-or” proposition. A hybrid approach has human beings responding to queries faster and more efficiently by using ChatGPT prompts to guide their responses.


You can also use ChatGPT for ideas to ramp up your customer service game, devise a company-wide strategy, and implement more effective customer service tactics.


Here are some sample customer service prompts to use or customize.

1. Closing out a chat with a dissatisfied customer

It can be challenging to find the best words to show empathy when a customer insists on closing a chat before you've accomplished resolution. Whether the problem is being escalated to a supervisor or the customer has just given up, you want to leave them with parting words that will assuage their feelings and put a positive spin on the interaction.


“Create five different ways to conclude conversations with dissatisfied customers as a customer service representative. Maintain a compassionate tone and express your readiness to provide additional support.”

2. Closing out a chat with a satisfied customer

Likewise, you want a kind and caring way to close out a conversation after you've achieved a resolution that helps the customer. You can customize this prompt for any type of business and any situation that's been resolved.


“Pretend you are a customer service representative for [type of business]. Please provide five suggestions to close out a chat after you've resolved a customer's problem regarding [describe problem]. Please use a voice that is [describe your brand's voice].”

3. Developing a customer service strategy.

Whether you're just launching your business or feel your customer service mojo needs a boost, try this prompt to start brainstorming ideas for an effective customer service strategy.


“What are some successful approaches to develop a robust customer service strategy for a [type of business]?”

VOICES IN AI

“AI serves as a tool to complement human potential, rather than as a substitute for the genuine creativity and insight that only sentient, living beings can offer.”

~ Gina LaGuardia, Editorial Director of Top AI Tools, in “Are AI Models Going to Be Sentient?” on HappyFutureAI

TOOLS & RESOURCES

What we're exploring…


Did you know that Amazon has an in-app AI assistant that can help you compare products and answer questions before you make your purchase? Rufus, as it's called, can also answer questions about your order status. But the AI chatbot does more than provide customer service or product suggestions.


For instance, we asked Rufus what we'd need to set up a home office, and the chatbot provided suggestions in a variety of product categories, from chairs to keyboards. It also provided additional, related questions we could ask for a deeper dive into the topic.

E-commerce store owners can learn a lot from the way Rufus operates.


Here are some key takeaways:

  • Provide your customer with multiple options. Rufus didn't just list one desk or office chair. It provided links to Amazon search results showing multiple options. “Recommended products,” “You may also like,” or “People also bought,” functions in your e-commerce store can increase sales. But don't just show one product and leave it at that. Give shoppers choices.


  • Be a resource. Along with product recommendations, Rufus provided helpful tips. For instance, it suggested features to look for in a desk, such as one with adjustable heights for better ergonomics. Don't just focus on products when you're connecting with your customers. Be a true guide, helping your customers navigate unfamiliar territory. Salespeople call this “consultative selling,” and it is a proven strategy to drive sales and repeat business.


  • Anticipate your customers' needs. Through its sophisticated algorithm, Rufus keeps the conversation going with additional questions you might want to ask. Whether you're pursuing face-to-face or phone sales or running an e-commerce website, the more you can keep your customer talking to ascertain their needs, the more opportunities you have to build trust. And, as we've established, trust leads to sales.


Fortunately, you don't have to be an industry leader like Amazon to take advantage of AI chatbots or the strategies Rufus uses to boost sales and build trust.


Explore: Read more about Amazon's AI shopping buddy, Rufus


What we're reading…


The recent controversy surrounding Air Canada's AI chatbot (that's where the airline faced backlash due to a misunderstanding about bereavement fares), offers a significant lesson for SMBs:


You MUST align your AI tools with human empathy and ethical standards.

Easier said than done— we know. (It can all be very confusing.) Here are a few takeaways to help you put this into practice:

  • Put oversight on overload. There's no such thing as too much regulation of your AI. Make it someone's job to regularly review and update it so that it accurately reflects your company's policies and values.


  • Place a premium on empathy. Even the most advanced AI needs a human touch to ensure it handles sensitive situations with care. Spot-checks by your customer service manager, along with periodic reviews of scripting and prompts to ensure they prioritize compassion, are key.


  • Remember: Trust is everything. And it's absolutely, positively nonnegotiable. Authenticity, transparency, and accuracy are three essentials for maintaining customer trust and avoiding costly missteps.


Indeed, the AirCanada incident is a cautionary tale, one to take note of it and consider as you work toward developing, maintaining, and perfecting your AI customer support strategy. While AI can streamline operations, it's up to us to ensure it strengthens—not weakens—your customer relationships.


READ: The Unsettling Truth Behind AirCanada's Chatbot Controversy


What we're watching…


Confession: Certain members of the Top AI Tools team have a guilty pleasure in following boy bands. 👨‍🎤 (Notably, New Kids on the Block, but more recent bands also have their good points!) So we absolutely had to check out the Netflix documentary series “Dirty Pop: The Boy Band Scam.”

However, we were surprised to learn of the AI-fueled controversy behind the show, which chronicled the rise and fall of boy band manager Lou Pearlman. It turns out Netflix used an AI recreation of the late Pearlman's voice to narrate the series.


And, although Netflix disclosed that the voice was digitally generated, viewers weren't happy.


“Tried watching the 'Dirty Pop' on Netflix but the AI Lou Pearlman thing is so off-putting and terrible, I'm not finishing it,” viewer Jerry Roe told the blog Teeveetee.7


Quality aside, other viewers voiced concerns that using AI in this way will make it harder to tell what's real and what isn't. Which brings us back to ethical AI use…


Transparency is crucial.


It's also important to consider whether you need AI in any given situation or if you can achieve the same (or better) results through other technology. It reminds us of that famous line from Jurassic Park: “Your scientists were so preoccupied with whether they could, they didn't stop to think if they should.”


As we venture forward in a world of AI, pushing the envelope on what it can accomplish, it's important to keep that mantra in mind.


WATCH: “Dirty Pop: The Boy Band Scam”

AI chatbots can help you deliver more personalized support in the way customers expect with timeliness and ease. But it's important to remember that not everyone is as hyped up about AI as we are. That's OK!


AI gives you an advantage over competitors who are still working the slow, old — ahem 🙈 — “low-tech” way. You can achieve your objectives, boost sales, and answer customer's questions quickly and with ease.


Of course, you'll want to be transparent about customer privacy, online security, and data collection. And if you're using AI in marketing and promotions, you should let your customers know that so they can make informed decisions. But you may want to re-think the way you're promoting AI use in your organization...


AI is a tool — not a unique selling proposition.


Here at Top AI Tools, we look forward to the day when people no longer fear AI but embrace its vast capabilities. It's our mission to demystify AI so that more people will feel comfortable and confident using it.


If you're reading this, you're already ahead of your competitors; you know where to go to find the latest AI tools and the best ways to put this technology to use. Thank you for reading!

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1 “50 Customer Service Stats You Need to Know In 2024 ,” JindalX. December 26, 2023.

2 The Future of Chatbots, Tidio, July 26, 2024.

3 “Essential Omnichannel Statistics: Key Insights for Customer Engagement Success,” WorldMetrics, July 23, 2024.

4 “Most popular social networks worldwide as of April 2024, by number of monthly active users,” Statista, July 10, 2024.

5 “Number of unique WhatsApp mobile users worldwide from January 2020 to March 2024,” Statista, April 4, 2024.

6 “Brands should avoid this popular term. It's turning off customers,” CNN Business, August 10, 2024.

7 “Netflix viewers slam streamer over 'embarrassing' AI recreation used in off-putting Dirty Pop: The Boy Band Scam documentary series,” TV with Thinus, July 29, 2024.