\n
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/08\/GettyImages-1236822692-e1723487801746.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
Despite almost a quarter<\/a> of U.S. adults using ChatGPT and thousands of companies integrating artificial intelligence<\/a> into their operations, many consumers haven\u2019t ditched the fear of a Terminator<\/em>-style AI takeover. That could be bad news for brands<\/a> trying to convince customers to buy their AI-stamped products.\u00a0<\/p>\n A study<\/a> published in the Journal of Hospitality Market and Management in June found consumers were less interested in purchasing an item if it was labeled with the term \u201cAI.\u201d Across a series of studies, participants were asked about their intention to buy a product\u2014from televisions to vacuums to consumer and health services\u2014labeled with one of two descriptors, \u201cAI-powered\u201d or \u201chigh tech.\u201d Among about 200 participants across age and gender demographics, the impact of AI labels on a consumer\u2019s willingness to buy a product was unanimous, according to Dogan Gursoy, hospitality management professor at Washington State University\u2019s Carson College of Business and one of the study\u2019s authors.<\/p>\n \u201cIn every single case,\u201d Gursoy told Fortune<\/em>, \u201cwhenever we mentioned \u2018AI\u2019 versus \u2018high tech,\u2019 consumers\u2019 purchase intention went down.\u201d<\/p>\n Indeed, shoppers are largely threatened by AI, with only 30% of respondents saying they trust generative AI, according to a Cognizant survey<\/a> of 1,000 U.S. consumers. Almost three-fourths of respondents believed genAI would increase corporate profits, and 28% believed genAI would benefit consumers the least compared to corporations, small businesses, employees, and the government.\u00a0<\/p>\n Brands have largely overestimated consumer trust in AI, Gursoy said, and he has the research to support his claim. When consumers had lower emotional trust, a critical factor in determining if a shopper will buy a product, they also had low purchase intentions for products labeled \u201cAI-powered.\u201d Purchase intentions and emotional trust were lower for items participants considered higher risk, such as cars.<\/p>\n For many consumers, the anxiety around AI stems from an identity threat<\/a> the technology poses, Gursoy said. The fear of AI taking over humanity<\/a>\u2014exemplified in Gen Z\u2019s fear of losing their jobs<\/a> to the technology\u2014is still salient.<\/p>\n \u201cIt threatens my identity, threatens the human identity,\u201d Gursoy said. \u201cNothing\u2019s supposed to be more intelligent than us.\u201d<\/p>\n These fears have been exacerbated by consumer concerns over privacy, with most consumers saying their trust in AI has already been eroded<\/a> by organizations using the technology, per Cisco\u2019s 2023 Consumer Privacy Survey. Lawmakers are reacting accordingly: The proliferation of deepfake video and audio content caused Massachusetts Attorney General Andrea Campbell to sound the alarm<\/a> over AI, warning companies that use the technology that they must abide by the commonwealth\u2019s consumer-protection and data-privacy laws. Amazon\u2019s use of a palm-scanning payment system<\/a> at Whole Foods stores sparked concern from cybersecurity experts.<\/p>\n \u201cAny time you entrust your data with a private corporation, you\u2019re trusting that company to keep that data safe. And most of the time, you probably shouldn\u2019t,\u201d Evan Greer, director of tech regulation advocacy group Fight for the Future, told CNBC<\/em><\/a>.<\/p>\n\nIdentity threats and existential fears<\/strong><\/h2>\n