But here's the issue: a lot of your customers really don't like it.

Recent research shows an unexpected reality. When participants in a study by Washington State University and Temple University were divided into two groups—one seeing products labeled as "AI-powered" and the other seeing them described as "new technology"—there was no positive boost for AI. In fact, the group exposed to AI branding showed less interest in purchasing.

Published in the Journal of Hospitality Marketing & Management, this study involved 1,000 respondents who reviewed product descriptions. The results consistently showed that when a product was described as using AI, it became less appealing.

The Psychology Behind The AI Backlash

The reason behind this isn't based on logic—it's emotional. “The main finding of this study is that the use of AI decreases emotional trust,” says Mesut Cicek, assistant professor at Washington State University, as reported by CX Dive. “Consumers have trust issues with AI, and this in turn reduces their purchase intent.”

Consider what goes through your customer’s mind when they see the phrase "AI-powered." You might expect them to think about innovation or efficiency. But more likely, they're recalling concerns like job displacement, AI-generated errors, data privacy issues, or even fears of machines making decisions beyond human control. For some, it may even conjure images of dystopian futures ruled by autonomous robots.

“When we started this project, we assumed AI would improve consumer willingness to buy because so many companies are pushing AI features,” says Dogan Gursoy, a Regents professor at Washington State and co-author of the study, according to the Wall Street Journal. “But apparently, it has a negative effect rather than a positive one.”

This aversion grows stronger depending on the perceived risk of the product. The difference in preference between AI-labeled and non-AI labels was smaller for low-risk items like televisions, but much more noticeable for high-risk purchases such as cars or medical diagnostic services.

Older Customers Are More AI-Averse

Another study cited in the WSJ article, conducted by Parks Associates, supports this trend. Among around 4,000 Americans surveyed, only 18% said AI would make them more inclined to buy, while 24% said less inclined, and 58% said it had no impact.

Among younger respondents (ages 18 to 44), 24% to 27% expressed interest in buying a product marketed as having AI. However, among those aged 65 and older, 32% said they would be less likely to make a purchase if the product was advertised as AI-based.

Interestingly, the wealthiest demographic—older adults with disposable income—is also the most likely to reject AI-driven marketing.

What Marketers Should Do About AI Claims

Harvard Business School legend Theodore Levitt once said: “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” In other words, don’t focus on the technical specs like diamond-enhanced drill bits. Your customers care about results—cleaner holes, faster.

So, keep improving your products with AI—but stop highlighting it so aggressively, at least until public perception shifts. Emphasize benefits, not jargon.

Ask someone if they want to chat with an AI bot, and they’ll likely say no. (Though fairly, until recently, most chatbots were ineffective barriers keeping users from reaching real people.) But ask them if they want quick and reliable support, and they’ll jump at the chance.

I believe perceptions will shift over time—perhaps sooner than expected. Some industries are already embracing AI enthusiastically. And since business leaders are pushing hard for faster AI adoption, B2B marketing can still benefit from emphasizing AI capabilities.

Marketers succeed when they speak to customer needs, not just product features. Until consumers start actively seeking out AI in their purchases, avoid spotlighting it—even if AI is significantly enhancing your product.

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