How AI damages brand trust
The underlying concerns consumers hold towards companies adopting emerging technologies.
Artificial intelligence (AI) is everywhere. From smartphones and apps to healthcare and finance — AI is the latest fashion accessory for businesses. However, just because so many companies utilize AI does not mean it’s a good idea.
Many businesses are integrating AI not because they need it but because they have developed a case of FOMO (fear of missing out).
While it may seem progressive to integrate what could be described as the most significant technological breakthrough since the internet, it may also jeopardize a company’s brand reputation.
One of the primary goals for any business is to build a trustworthy brand. Trust builds loyal customers, the most valuable asset for any brand.
However, building trust using unproven technology is counterproductive, especially if most people have reservations regarding AI technology.
Recent surveys indicate a significant distrust among Americans toward AI. Approximately 70% of people familiar with AI report having little to no trust in companies to make responsible decisions regarding its use in their products.
Concerns are more elevated about the potential misuse of personal information, with about 81% of respondents uneasy about how companies deploying AI technologies might use their data in unintended or uncomfortable ways.
And if that wasn’t enough, according to a survey by Checkr, nearly 75% of American workers are worried that AI might lead to job losses within the next six months to two years.
Considering the data, it’s reasonable to conclude that AI does not currently serve the public interest, especially when controlled by corporations.
So why are so many companies jumping on the AI bandwagon?
To be fair, companies always embrace new technology with the intention of staying ahead of the curve — much like in the late 1990s when every business wanted a website, even if they didn’t need one.
It’s sometimes forgotten that consumers seek out a brand’s products and services for specific reasons, such as familiarity, convenience, and reliability, rather than the allure of the latest technology.
Take Google, for example. Recently, they faced controversy with their AI image generator, Gemini, over accusations of exhibiting a left-leaning bias by creating “diverse” images that were not historically or factually accurate — such as black Vikings, female popes, and Native Americans among the Founding Fathers.
Critics argued that Gemini’s algorithms favored images and themes aligned more with progressive values. Others say that it was a mistake in the algorithm and not intentional.
Whether the critics are right or wrong, Google paused the development of its AI image generator to address the issue. Unfortunately, their brand’s credibility had already been compromised by that point.
Google is a brand used by millions of people. It must be reliable, and they made a huge mistake by launching a product that was not ready for public use — a master class on how to erode public trust in your brand.
AI is an unproven technology. There is just not enough public trust to build upon yet. Companies that prioritize technology hype over reliability will suffer consequences.
Public skepticism around AI can be understood through the Law of Diffusion of Innovations, which explains how new ideas and technology spread. This law identifies five categories of adopters: innovators, early adopters, early majority, late majority, and laggards.
Innovators and early adopters embrace AI, driven by a desire to be at the forefront of technology. However, the majority need substantial evidence of AI’s benefits and assurances of safety and privacy before acceptance.
Building public trust and showing the ethical benefits of AI is crucial for its broad adoption, especially when tied to a preexisting brand. Without addressing public concerns, AI may not move beyond early adopters to the mainstream, limiting its acceptance. And in the worst case, it will repel existing brand consumers.
For widespread acceptance, companies must practice transparent and responsible AI. This means following ethical AI principles and communicating these efforts through their brand values.
Highlighting real-world AI benefits, such as improved efficiency, accessibility, or safety, can emphasize its value. And explaining how AI systems work, data use, and data protection measures can reduce fears and build or maintain brand trust.
Much like developing a good brand, engaging with stakeholders, including customers, regulators, and the community, is essential to prioritize diverse perspectives and ethical considerations of AI.
Cultivating a trustworthy brand requires time and meticulous consideration when integrating new technology. Concerted efforts to demystify AI and demonstrate its ethical use can overcome some of these barriers to adoption, thereby facilitating its potential with broad-based support and trust.
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