The AI Frenzy Is Introducing Marketing Buzzwords That Consumers Don't Understand

Since OpenAI’s release of its large language model chatbot ChatGPT in November, public fascination with artificial intelligence has skyrocketed — and the private sector is responding in kind. 

From Spotify Technology SA’s AI DJ that produces custom radio shows to Wells Fargo & Co.’s AI banking assistant, companies across every sector are in a race to incorporate the technology into their offerings and tout its benefits (a strategy that has frequently sent stock prices soaring in recent months). Mentions of AI in quarterly earnings calls are up 75% over 2022 so far this year, according to a MarketWatch analysis.

There’s just one issue: Companies’ boastful marketing claims around AI are confusing many consumers.  

A new Morning Consult survey shows that, despite the ongoing AI frenzy, most U.S. consumers aren't sure what AI-related marketing phrases and buzzwords actually mean. More than half of U.S. adults said they are not confident that they understand the meanings of 10 common marketing phrases, such as “Powered by AI” and “Includes AI.” 

The survey also found that support for companies’ using AI-produced spokespeople, influencers or online avatars as part of their marketing strategies varies widely across genders and generations. Significantly larger shares of men (46%) and millennials (52%) said they approve of this practice than did women (28%) and baby boomers (20%). 

Younger consumers and men are most confident they understand AI marketing claims

• “AI image generation” was the term with the highest levels of comprehension confidence among most major demographic groups, except Gen Xers and women. Several AI-generated images have recently gone viral on social media, possibly contributing to elevated familiarity.
• In contrast, more specific phrases like “AI-enhanced productivity” and “AI task automation” were some of the least-understood terms across demographics. 
• Gen Z adults (61%), millennials (57%) and men (52%) reported the highest overall average confidence in their understanding across all tested phrases. Meanwhile, 30% of women and 20% of baby boomers said they understand the terms, on average. 

Millennials are most supportive of AI marketing spokespeople 

• Nearly equal shares of U.S. adults said they support (37%) and oppose (34%) brands’ leveraging AI spokespeople in their marketing materials. 
• At least 1 in 5 respondents from every demographic group said they are undecided or have no opinion on the matter.
• Men (46%) were much more supportive of the practice than women (28%). 

What’s the magic word?

Some companies have already recognized consumers’ relative discomfort with AI and are taking steps to communicate their use of the technology through more familiar language. 

Graphic design software giant Canva Inc. is using the term “magic” to describe its new suite of AI-backed tools, which Chief Product Officer Cameron Adams told Quartz was an effective framing because it conveys ease of use and has an overwhelmingly positive connotation.   

As much as it is an area of messaging opportunity and innovation, the emergence of AI is also presenting brands with a new frontier for potential PR crises.

Levi Strauss & Co. recently came under fire on social media for testing AI-generated e-commerce models to increase diversity. Users called out that simply hiring human models of varying skin tones and body types would’ve been more effective. 

The April 13-16, 2023, survey was conducted among a representative sample of 2,202 U.S. adults, with an unweighted margin of error of plus or minus 2 percentage points.