Can too much AI backfire? Study reveals why ‘AI-powered’ products are turning buyers away

For all the bold claims about artificial intelligence revolutionising the future, a new study suggests that the buzzword “AI” might be doing more harm than good—especially when it comes to convincing customers to make a purchase. Far from being impressed by “smart” devices, many people are actually repelled by them.

According to a report from The Wall Street Journal (WSJ), a study published in the Journal of Hospitality Marketing and Management reveals an unexpected trend: consumers, particularly those shopping for premium products, are less likely to buy when the product is branded as “AI-powered.” The study was led by Dogan Gursoy, a professor at Washington State University, who was reportedly surprised by the findings.

In an experiment detailed in WSJ, participants were split into two groups: one exposed to advertisements emphasizing artificial intelligence, and the other shown ads using vaguer terms like “cutting-edge technology.” The result? Those marketed with generic tech phrases performed better in terms of consumer interest. AI, it turns out, might be the tech world’s equivalent of trying too hard.

The AI Label: A Bug, Not a Feature?

What the study underlines is that people don’t necessarily want a product that sounds smart—they just want one that works. As a report from VICE puts it bluntly, “Does it toast the bread? Good. We did not need an AI to maximize our toast potential.”

That attitude reflects a broader skepticism toward AI-branded gadgets. A related survey by Parks Associates, also cited by The Wall Street Journal, found that 58% of the 4,000 American respondents said the presence of the term “AI” made no difference in their buying decision. More notably, 24% said it actually made them less likely to buy the product, while only 18% said it helped.

Even among the most tech-savvy generations, enthusiasm for AI branding is modest. The Parks survey found that only about a quarter of consumers aged 18 to 44 felt positively influenced by AI marketing. Older consumers were even more wary—about a third of seniors outright rejected products marketed with AI terminology.

So Why the Mistrust?

Several reasons underpin this skepticism. For one, many consumers simply don’t understand how AI adds meaningful value to a product. When companies fail to clearly explain the benefit—such as how an AI-enhanced vacuum cleaner is better than a regular one—customers suspect gimmickry over genuine innovation. As VICE quips, “Don’t even bother explaining… I will immediately call out marketing speak—just old school American frontier snake oil with a snazzy tech coating.” There’s also the matter of trust. AI-powered products are often seen as surveillance tools cloaked in convenience. Whether it’s the fear of a smart speaker listening in or a robotic assistant tracking daily habits, the suspicion that AI devices are snooping looms large.

From Boon to Burden

There may have been a brief window when “AI-powered” labels intrigued consumers—maybe even excited them. But that window appears to have been closing for now. Today, AI branding risks sounding more like a creepy techno-curse than a promise of progress.

As the report suggests, if marketers truly want to promote AI-enhanced products, they need to stop leaning on the term “AI” as a standalone badge of quality. Instead, they must return to the basics of marketing: clearly articulating the practical, time-saving, or value-adding benefits a product offers.

In the end, intelligence alone doesn’t sell; especially if it’s artificial and unexplained.