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What Do Consumers Think About AI?
Prophet research reveals surprising perceptions and adoption patterns of AI with consumers.
Since the seemingly overnight emergence of ChatGPT, businesses everywhere have been buzzing about generative AI’s impact, particularly on process efficiency and workforce productivity. While the benefits in those areas are indeed transformational, we’ve been struck by how consumers and their perceptions and experience of AI have been largely sidelined in the conversation. Similarly, we see immense opportunities for GenAI to unlock growth, a frontier of AI transformation many businesses haven’t yet reached.
That’s why we’re launching a study to explore:
- What are consumers doing with GenAI today, and why?
- How will GenAI affect them?
- What are their plans for the future?
The “tl;dr” on Our Initial Findings
While the quantitative research is still underway, we wanted to share initial findings from our qualitative sessions because we think the implications are potentially profound. Specifically, we see clear evidence of the rise of AI-powered consumers who are moving faster, doing more and expecting more in terms of fast, frictionless and individualized offerings. They seem increasingly ready to turn over more of their lives to AI, are watching brands’ commitments to ethical AI, and are deeply invested in finding even more ways to benefit from it.
Thus, firms looking to spark sustainable and transformative growth with GenAI will likely need to accelerate their plans to get ahead of – or even keep up with – the most creative-minded early adopters and power-users. That’s especially true for firms in retail, CPG, hospitality, financial services and healthcare, which are in the vanguard of GenAI adoption. We hope the insights in this article help you connect the dots between your AI strategies and the emergence of the AI-powered consumer.
What Consumers Are Telling Us
As is always the case with new technology, consumers have diverse views about GenAI. There are power users actively adopting GenAI across many facets of their personal and professional lives and more passive and cautious adopters. Tinkering is the norm for many in the middle. Each of these groups exhibits different uptake and usage patterns. There is also considerable nuance in their attitudes toward AI ethics and responsible adoption by businesses.
Despite these distinctions, the initial phases of our research yielded evidence of five meaningful patterns in consumer adoption of AI.
1. All Types of Consumers Are Moving Surprisingly Fast
Conventional wisdom says that businesses are leading the way on AI, but our research shows that consumers are moving faster than many companies realize. When talking to us about AI, consumers used their own terms and definitions. They clearly see the value of the apps and tools they use and do not feel overwhelmed by AI’s complexity. That’s true of even the slower and more cautious adopters. Natural language processing – and voice integration – are of great interest to all types of users, because they make GenAI tools feel more accessible than the digital tools and platforms of the past.
- What consumers say: “With AI, I don’t have to go down the rabbit hole of Googling my ailments but can have a conversation. It says, ‘it could be this’ and I say, ‘no, it’s not that.’ That’s better than having to read and read. AI scans for me and has a conversation,” said a somewhat frequent 60-year-old user.
- So what: Because consumers are moving fast, there is urgency to identify new ways to engage with AI-enabled experiences that map to consumer needs and preferences.
- Who’s doing it right: Colgate-Palmolive is leveraging AI to improve consumer experiences across the journey – from enhancing search with AI, to personalizing creative, to rapidly prototyping and testing product innovations.
Consumers are using generative AI tools before, during and after purchases.
2. Beyond Personal Productivity, Consumers Prioritize Creativity, Fun and Inspiration
Productivity is a big part of AI’s attraction. But our research shows that inspiration, shopping and fun are other major motivations to use GenAI. One consumer told us about how he enjoys creating AI images on his phone and sharing them with friends.
- What consumers say: “When I’m on the bus, I will click over to [an AI image generator] and put in some words and just play around for 15-30 minutes,” said an occasional 30-year-old user.
- So what: For businesses, creative AI-driven marketing activations and experiences can boost engagement by creating joy and delight.
- Who’s doing it right: Warner Bros.’ Barbie AI Selfie Generator allowed users to design their own unique Barbie. Reaching 13 million users in just a few months, the generator was a hallmark of Barbie’s world-class marketing campaign.
3. Consumers Have Strikingly Specific AI Aspirations
That old paradigm “if I had asked my customers what they wanted, they would have said a faster horse” may be less applicable as modern consumers become more tech savvy and have easy access to powerful tools. Consumers don’t necessarily grasp the technical fine points or legal guardrails about AI; but they are pretty clear about the experience they want.
- What consumers say: “If I could enter what I want to eat and if my fridge could use AI to analyze the ingredients I have, what I need from the shop, and then build a shopping cart I can review and order, that would be great,” said a somewhat frequent 65-year-old user.
- So what: Because consumers are imagining new ways to use AI, they can help imagine and co-create breakthrough applications as part of clearly defined innovation processes.
- Who’s doing it well: Coca-Cola’s Creations platform provides a space to engage consumers and capture their input for new product innovations. The Y3000 Flavor of the Future was created by leveraging consumer insight and the power of AI to drive engagement with Gen Z, the brand’s growth target.
4. In the Eyes of Consumers, ChatGPT is Only the Beginning
The first killer app of the GenAI age, ChatGPT is incredibly powerful for consumers and among the most popular and frequently used apps. But consumers hope to use many other applications in the future, largely because they see the limits of ChatGPT; as one consumer told us, “It only takes me so far.” In fact, they are looking for more nuanced, bespoke answers to the questions they need.
- What consumers say: “I’ve tried things like ChatGPT for trip itinerary planning. It’s helpful but doesn’t get that detailed. If I want to know details like the safest place to walk around as a woman, it can’t give me that yet,” said a high-frequency, 23-year-old user.
- So what: Consumers want more precision, meaning businesses can develop bespoke solutions based on proprietary data and look to deliver on unique brand promises. Build, buy and partner – depending on the use case, each of those approaches can be viable.
- Who’s doing it well: Via a partnership with OpenAI, KAYAK used its historical travel database to train GPT-4, the large language model. The goal is to help users find travel experiences meeting their precise needs.
5. Consumers Are Paying Attention to How Businesses Talk About AI
Consumers told us they want to hear about AI, but within preferred contexts and applications. If an experience is piloting or experimenting with AI, consumers appreciate a call out that it’s AI, and that it’s “still learning.”
Some consumers are annoyed by “overly promotional” language about AI; they are looking for authenticity and transparency instead. We also heard about the importance of brands communicating their commitments to use AI in ways that align to the organizational purpose and values – clear evidence of consumer interest in AI ethics.
- What consumers say: “I’m thinking about what brand do I want to support with AI? Who is investing and being thoughtful in terms of protection and checks? And which firms are brazenly advancing and not so worried about protection?” said a high-frequency 23-year-old user.
- So what: Because consumers are paying attention, brands should be deliberate in crafting intentional, authentic messaging around AI, presenting it in the moments that matter. The focus should be on explaining brand intentions and providing helpful and transparent guidance. For more ways Marketers can use AI, see our Four Ways to Maximize Value
- Who’s doing it well: S&P Global is taking a holistic approach in positioning its brand for the age of AI. It’s developing an AI brand narrative linked to its company purpose, designed to resonate across its wide array of audiences. From there, it’s integrating clear, consistent messaging across all of its brand communications and experiences that stem from that positioning.
Ethics Matter on the Road Ahead
Discussions of AI are incomplete without mentioning ethics. And, according to our research, all types of users – from cautious adopters to more pragmatic users – have AI ethics on their mind. The common theme is that ethics and brand intentions matter, though they will influence decisions differently in different contexts and for different users. Consumers aren’t just blindly adopting every GenAI app; rather, they are thoughtfully considering and – in the case of power users – calculating where they want to spend their time and engagement.
Imagine a world where multiple AIs work in the background to find bargains, negotiate better prices for consumers, and make smart purchase decisions. Or where personal assistants connect accounts and act on consumers’ behalf across financial services, healthcare and other sectors, particularly with those companies that have cultivated trust with their AI deployments.
FINAL THOUGHTS
Based on our research, we believe that futuristic vision may become reality much sooner than many brands expect. Consumers may not know precisely what’s coming next, but they seem well on their way to proactively figuring out how to embed AI more deeply in their lives.
There’s more to come as we complete and expand our research globally. Subscribe today for access to our newsletter to be among the first to receive insights and ideas for how to better know and serve the AI Powered Consumer.