Consumers, AI and the Power of Trust
Consumers are increasing their use of generative AI, and that has major implications for their trust in marketing content created with AI.
A new Deloitte survey found that GenAI usage has more than doubled over the past year. Roughly 4 in 10 consumers are experimenting with or using GenAI for various tasks, including personal, work-related, and educational projects, up from 16% in 2023.
Younger generations are at the forefront of GenAI adoption, with half of Gen Zs and Millennials using or experimenting with it, according to the Deloitte survey.
A separate study by Morning Consult and CCIA found that almost half (45%) of consumers have used AI services, with 65% of consumers ages 13-17 already utilizing this technology.
Morning Consult and CCIA survey of consumers ages 13-70, October 2024
However, the Deloitte study also point to growing concerns about data security and the potential misuse of AI.
70% of consumers familiar with GenAI say it makes it harder for them to trust online information .
68% are worried they will be fooled or scammed by something created with AI
48% of respondents report at least one security failure in the past year, a significant rise from 34% in 2023
What does this mean for marketers? It boils down to creating trust and meeting consumers where they are in their AI journey.
“Very few respondents feel “trust” toward gen AI before they use it, but for regular users, trust is the No. 3 emotion.”
In my latest Sonata Insights research collaboration, I explored consumer attitudes toward advertising that was created with AI. The study, in partnership with industry organization IAB, found that younger consumers feel much less positive toward AI ads than industry executives think they do—a feeling that was particularly pronounced among Gen Z respondents.
In addition, while about one-third (31%) of respondents said their trust in a company would increase if they knew an ad was created with AI, about a quarter (27%) would trust a company less if they knew an ad was created with AI. Gen Z respondents were even more likely to have lowered trust if they were aware an ad was created with AI.
Sonata Insights and IAB study of US Gen Z and Millennial consumers, August-October 2024
In our Sonata Insights/IAB study, we highlight three crucial best practices for advertisers to navigate this challenge and build trust with young consumers:
Transparency is Key: While three-quarters of advertisers in our survey said they already disclose AI usage in their ads, the study highlights the importance of going beyond mere disclosure. Advertisers should use this opportunity to educate consumers about the “how” and “why” of AI deployment in their ads, fostering understanding and trust. Simply stating that an ad is AI-generated isn't enough; explain the benefits and rationale behind using AI to create a more positive perception.
Strategic Placement Matters: The Sonata Insights/IAB study highlights the alignment between advertiser intentions and consumer preferences regarding ad placement. Both groups favor social media and online display as the preferred channels for AI-generated ads. This preference likely stems from the interactive nature of these platforms, making them more conducive to engagement. However, a considerable gap exists between the enthusiasm levels of advertisers and consumers. This underscores the need for advertisers to prioritize education and engagement strategies even on preferred platforms.
Prioritizing Creativity Remains Crucial: While AI can streamline ad creation, it shouldn't come at the cost of quality and creativity. Our study reveals that young consumers are most likely to engage with AI ads that feature high-quality visuals, humor, and personalization, especially for Gen Z. Advertisers should leverage AI's potential to enhance these elements, creating ads that are visually appealing, humorous, and tailored to individual interests. The use of AI shouldn’t be a substitute for creative excellence.
Trust is something that marketers spend decades building, and one wrong move can destroy that trust in an instant. The more consumers use gen AI and feel comfortable with it, the more likely they are to trust it. Marketers, you have an enormous opportunity to be a partner in helping consumers along that journey. Don’t squander it.
