Consumers are underwhelmed by AI-powered experiences
The data is clear, at least according to a recent Lippincott study: AI isn’t wowing consumers. Less than one-third of users—just 29%—say their expectations are being met by AI-powered interactions. This isn’t a technology that feels magical yet. What’s even more telling is the skepticism: 40% of consumers doubt AI’s potential to improve their experiences with brands. That’s not hesitation, it’s a vote of no confidence.
This disconnect stems from AI failing to deliver outcomes that feel human and intuitive. While the technology is undeniably powerful, consumers don’t measure success by technical achievement. They want seamless, personalized interactions that genuinely solve problems or add convenience. When AI misses that mark, people notice, and their patience is limited.
This sentiment is critical because it reflects unmet expectations, not just a lack of familiarity. A majority—61%—of respondents have already used AI tools, whether in their personal or professional lives. Only 39% haven’t tried these systems, and of those, just 1% claim they’re unaware AI exists. It seems to be more of a performance problem than anything else.
For AI to break through, brands must stop treating it as a novelty and start delivering real value. The opportunity is enormous, but the execution so far hasn’t connected with consumers in the way they hoped. With so many people already skeptical, the stakes for future innovation couldn’t be higher.
Consumers expect brands to use AI but aren’t always impressed
Consumers have high expectations for AI—but they’re also tough critics. According to the same Lippincott study, 57% expect brands to incorporate AI to improve their products, services, and customer experiences. That’s a strong majority, but there’s a catch: they’re not particularly impressed when brands do it. In fact, 52% say they don’t perceive brands using AI as more innovative than those that stick with traditional methods.
This gap points to a deeper truth about how consumers view AI. It’s no longer seen as cutting-edge, but is becoming table stakes. If AI doesn’t deliver tangible improvements, people dismiss it as irrelevant, or worse, a gimmick. Brands that use AI to simply appear innovative are missing the point entirely. Consumers are looking for substance over flash—solutions that simplify, enhance, or enrich their experience in meaningful ways.
This disconnect isn’t about consumers being resistant to technology. On the contrary, they’re leaning in, expecting brands to use AI to solve real-world challenges. But half-hearted implementations—like chatbots that misunderstand basic questions or AI recommendations that feel random—erode trust and enthusiasm.
The challenge for brands is clear: AI needs to deliver outcomes that matter. Meeting expectations requires understanding what customers actually value and crafting solutions that exceed those demands. Anything less, and consumers will remain unimpressed, regardless of how “innovative” AI might seem on the surface.
Most consumers are unwilling to pay extra for AI-powered features
Consumers view AI-powered features as a baseline offering, not a luxury add-on. Only 7% of respondents are willing to pay more for services or products enhanced by AI. For the rest, it’s a non-negotiable part of the experience. Over half—57%—expect pricing to stay the same whether AI is involved or not. Adding to this, 36% go a step further, expecting to pay less when AI is integrated, seeing it as a cost-saving measure for brands.
This mindset challenges businesses to rethink their strategies around AI monetization. Customers aren’t dazzled by the technology itself and are instead focused on the outcomes it delivers. If an AI-powered tool improves efficiency, users expect those benefits to translate into cost savings, not extra charges.
There’s a broader perception of AI as a tool that should simplify processes and create value. Consumers see it as a way for companies to work smarter, not as an excuse to inflate prices. When brands attempt to upcharge for AI features that don’t clearly justify the cost, they risk alienating their audience.
Transparency about AI use is critical for trust
Trust is based on honesty, and for AI, that means clear disclosure. When customers discover that AI was used without their knowledge, it’s a betrayal. Nearly half—46%—say their trust in a brand decreases when they find out after the fact that an interaction or service was AI-driven.
This reaction isn’t about rejecting AI, but rather about how consumers value transparency. They want to know when AI is involved, and they appreciate brands that treat them as partners rather than targets. Concealing AI feels manipulative, creating a sense that the brand is hiding something—or worse, trying to deceive its audience.
For businesses, this is a straightforward fix: be upfront. If AI is handling customer service, processing transactions, or personalizing experiences, say so. The honesty itself builds goodwill, even if the AI experience isn’t perfect. Consumers are willing to forgive imperfection if they feel respected and included in the process.
Transparency also sets the stage for building trust long-term. As AI continues to evolve, customers will reward the brands that have kept them informed from the beginning. On the flip side, those that attempt to sneak AI into their services will struggle to regain trust once it’s lost.
Trust in AI use by brands remains low across age groups
Trust in AI seems to be more of a universal issue than one which is generational. Across all age groups, skepticism dominates. Among consumers 65 and older, only 18% trust brands to use AI responsibly. Hesitancy isn’t limited to older generations either, as digital natives aren’t sold either. Trust levels in younger demographics hover at just 24% for those aged 18-24 and peak at only 30% in the 35-44 bracket.
These numbers paint a clear picture: skepticism about AI cuts across age lines. This may surprise some who assume younger consumers are more open to technology. The reality is that tech-savvy individuals often have higher expectations and are more critical when those expectations aren’t met.
For businesses, these statistics signal a pressing need to address trust head-on. It’s not enough to target AI messaging to specific demographics. Instead, brands need to create universal standards of transparency, reliability, and performance that resonate with all audiences.
Consumers remain optimistic about AI’s potential despite current dissatisfaction
Even though today’s AI falls short of expectations, the future still looks bright. Consumers are paying attention, and they’re hopeful that AI will eventually deliver on its promise. This optimism is based on a belief that the technology is still in its early stages and will improve over time.
Right now, many are reserving judgment, waiting for brands to step up and show what AI can really do. The dissatisfaction they feel today isn’t a rejection of AI itself, but rather frustration that the current experiences aren’t living up to the hype. For businesses, this presents a golden opportunity: prove them right.
The takeaway is simple. While consumers are critical of what AI delivers today, they haven’t written it off. The demand for better, smarter, and more intuitive AI is loud and clear.
Final thoughts
Are you using AI to genuinely serve your customers, or are you simply chasing trends? Consumers aren’t impressed by the tech itself. They want results that matter, delivered with transparency and trust. What will be your next move?
