Can you spot AI?

Consumers experience fear regarding artificial intelligence (AI) due to their confusion about what the technology actually does, according to a new study by Pegasystems.

The study surveyed 6000 customers in six countries, including 1000 Australians, and found that many consumers appear hesitant to fully embrace AI devices and services.

Only 36% worldwide are comfortable with businesses using AI to engage with them — even if this typically results in a better customer experience. In Australia, 67% of respondents express some sort of fear about AI, with 18% even worried about robots taking over the world.

However, consumers may be surprised to learn they are already exposed to much more AI than they realise. Only 37% of Australian respondents thought they had directly experienced AI. But when asked about the technologies in their lives, the survey found that 87% actually use at least one AI-powered service or device — such as virtual home assistants, intelligent chatbots or predictive product suggestions.

When asked separately to identify AI-powered devices, only 39% knew Amazon’s Alexa and Google Home run on AI.

These findings can be traced to a basic misunderstanding of AI by consumers. Relatively few survey respondents knew that AI has the basic ability to interpret or understand speech, while just over half could identify some of the most common AI capabilities, like solving problems and learning.

These misperceptions are important because the study shows they have a negative effect on consumers’ openness to using AI. The data shows that consumers are significantly more comfortable with AI if they think they have previously been exposed to it. Globally, only one quarter of the people who report no AI experience feel at ease with businesses using AI to engage with them. But for AI veterans, this number jumps to 55%.

“Though AI has been around for more than 30 years, it has now evolved to the point that businesses can engage with each individual consumer on a real-time, one-to-one basis,” said Don Schuerman, VP of product marketing and CTO, Pegasystems.

“But our study suggests the recent hype is causing some confusion and fear among consumers, who may not really understand how it’s already being used and helping them every day. Businesses need to focus on using AI to develop applications that provide real value for customers to improve their experiences, rather than overhyping the technology itself.”

However, consumers also express optimism in the power of AI. Nearly three quarters of Australians say they want to experience more AI if it will help make their lives easier. Taken together, the survey results suggest that businesses should be more transparent about the fair and pragmatic use of AI in their products and services. Companies should find non-threatening ways to expose customers to its benefits to change their misperceptions and establish trust and comfort over time.

The report surveyed consumers across the US, Britain, France, Germany, the Netherlands and Australia.

Image credit: ©Vladislav Ociacia/Dollar Photo Club

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