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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

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