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Is AI branding backfiring?

July 14, 2025

artificial intelligence

Recent findings, including a study by Parks Associates, reveal a paradox that marketers must tackle: branding a product as “AI-powered” may alienate more consumers than it attracts.

Parks Associates’ research shows that just 18% of consumers feel encouraged to buy a product labeled as AI-driven, while 24% say such labeling deters them. This suggests that AI labeling may repel more consumers than it attracts, which is an important and counterintuitive insight for marketers. The data exposes a critical mismatch: rather than fostering trust or excitement, AI branding often triggers unease, particularly around issues of data privacy, control, and reliability.

From the article, "Is AI branding backfiring?" by Logesan Uthaya Sandiran

Previously In The News

As ‘Game of Thrones’ Returns, Is Sharing Your HBO Password O.K.?

The effect on the companies’ bottom lines remains unclear, but a study by Parks Associates, a research group, found that sharing cost the streaming video industry $500 million in 2015. One reason t...

Smart thermostats are tough sell, but ComEd hopes rebates boost interest

A study released this month by Parks Associates found only 18 percent of consumers would buy a smart thermostat at $250, but offering a $100 rebate more than doubled the pool of interested buyers....

Apple earnings could offer clues on streaming performance

Consumers get a year of the streaming service for free with purchase of a new Apple device. Converting those users into paying customers might be tricky, said Steve Nason with Parks Associates....

The streaming wars are flooding us with TV

Password sharing cost streaming companies about $9.1 billion last year, according to data from the research firm Parks Associates. From the article "The streaming wars are flooding us with TV".

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