How brands can build consumer trust in AI

Even members of Gen-Z: only 24 percent of 18-24-year-olds feel confident in the AI tools offered by major brands (see Figure 1). So, as companies invest in this technology more and more, it’s crucial to understand how brands can earn consumer trust and show the real value of AI.

Our point of view? Though it may seem paradoxical, brands must find authenticity in the artificial.

Part of that authenticity comes in the form of transparency about whether an experience is AI-driven or human-driven: 46 percent of people trust a brand less if they learned that it was using AI to provide services they assumed were coming from a human. This surprise is not a delight for consumers who are expecting one kind of service and receiving another.

Additionally, despite the hype around AI, only 7 percent of consumers are willing to pay more for AI features. In fact, 57 percent expect to pay the same price as they would for non-AI products (see figure 2). Without revenue gains to harvest from new AI offerings, brands will need to capture something else of value from consumers—potentially first-party data, increased share of wallet, higher engagement, lower cost to serve, or lower likelihood to attrite.

Many consumers feel let down by their experiences with AI—only 29 percent believe these experiences have met their expectations. Brands have a chance to rethink their approach to AI. In fact, 57 percent of respondents anticipate that brands will leverage AI to enhance customer experiences, yet 52 percent don’t see any real innovation from brands using AI compared to those that don’t (see figure 3). David Pianin, Partner in Lippincott's Marketing & Customer Strategy practice, suggests, "Building that trust requires brands to focus more on promoting AI’s benefits than the technology itself."

As brands explore AI, authenticity and transparency will be key to building consumer trust. Tom Ajello, Senior Partner and Director of Experience, shares, “We’re helping our clients find their own AI crossroads, where innovation meets purpose. By focusing on creating genuine, trustworthy AI experiences, brands can connect more deeply with their audiences."

As AI continues to evolve, prioritizing consumer trust is essential for brands. By understanding consumer feelings, highlighting the benefits of AI, and being transparent, brands can bridge the trust gap and build even more meaningful relationships with their customers.

For further reading on branding considerations when it comes to AI, head here.