Rethinking AI in Software Product Marketing

AI Software Marketing
In an era where artificial intelligence (AI) is changing whole industries, why are consumers increasingly wary of products marketed with AI?

Introduction

Consumers are growing skeptical of products labeled with “artificial intelligence.” This skepticism is impacting emotional trust and purchase intentions, particularly for high-risk items. For software product managers, this presents a unique challenge and an opportunity to rethink how AI is integrated and communicated in their offerings.

What happened?

A comprehensive recent study of consumer attitudes [1] highlighted that products described as using AI were consistently less popular across various categories. This trend was even more pronounced for high-risk purchases such as expensive electronics or medical devices. The term “artificial intelligence” seems to evoke a sense of unease among consumers, possibly due to overhyped expectations and fears of the unknown.

What this means for software companies

For software companies, this means that while the technology behind AI can significantly enhance product capabilities, the way it is marketed needs a strategic shift. Instead of emphasising “AI,” focus on the tangible benefits and features that the technology brings. Terms like “intelligent,” “smart,” or “adaptive” can convey the same advanced capabilities without the apprehension that “AI” currently invokes.

What this means for Software product Marketing managers

The backlash against AI in marketing is part of a larger trend of disillusionment. As Gartner’s hype cycle for generative AI suggests, the initial excitement has given way to a more critical view. Consumers are tired of the buzzwords and want to understand how a product will genuinely benefit them. By reframing the messaging, software companies can align with customer expectations and build trust.

Call to Action

Software product managers should review their current marketing strategies and identify areas where AI is overly emphasised. Shift the focus to the benefits and features that matter most to your audience. Use terms like “intelligent,” “smart,” or “adaptive” to describe your product’s capabilities. This approach not only aligns with consumer sentiment but also positions your product as a practical and trustworthy solution.

By making these adjustments, you can harness the power of AI without falling into the trap of overhyped marketing, ultimately driving better engagement and sales.

[1] Cicek, M., Gursoy, D., & Lu, L. (2024). Adverse impacts of revealing the presence of “Artificial Intelligence (AI)” technology in product and service descriptions on purchase intentions: the mediating role of emotional trust and the moderating role of perceived risk. Journal of Hospitality Marketing & Management, 1–23.

https://doi.org/10.1080/19368623.2024.2368040

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