Consumer trust in generative AI falls below 40%
What's the story
Despite the widespread use of generative artificial intelligence (AI) and digital platforms for product research, consumers remain skeptical about their recommendations. A recent McKinsey study revealed that trust in generative AI has plummeted below 40%. The findings highlight a growing contradiction in consumer behavior, with shoppers increasingly relying on digital platforms and algorithms for product discovery and purchase evaluation despite their skepticism toward them.
Trust issues
Trust issues extend beyond digital platforms
Danielle Bozarth, McKinsey's global leader of Retail and Consumer Packaged Goods Practices, said on The McKinsey Podcast that there's a lot of skepticism around algorithm-driven channels like social media and generative AI.
The distrust isn't limited to digital platforms; even recommendations from friends and family don't fare well with younger consumers.
"While these consumers are bringing more sources of information into their consideration set, they trust those sources significantly less," Bozarth noted.
Market shifts
Generative engine optimization gaining traction
The McKinsey research also found that brand-owned websites get very few direct citations in AI responses.
This trend is forcing companies to adopt generative engine optimization strategies, enabling algorithms to understand structured specifications, product details, and FAQs.
The study identified four key trends reshaping consumer behavior: a technology-led path to purchase, a broader health revolution, an expanding experience economy, and the rise of the resourceful consumer.
Value assessment
Consumers seek practical utility, durability in products
Clarisse Magnin, a Senior Partner at McKinsey, emphasized that consumers now look beyond just upfront prices to assess products based on practical utility and durability.
"Resourceful is exactly the right word because consumers are becoming increasingly creative when it comes to getting greater value for their money," she said.
Magnin also stressed that businesses need to incorporate value into their offerings from the start, rather than adding it later through promotions.
Adoption trends
Adapting to the new normal
The McKinsey study also found that consumers are most likely to adopt generative AI tools for high-consideration purchases such as travel, beauty, and fashion.
This trend is pushing businesses to quickly adapt their operational and marketing strategies.
The research highlights a complex relationship between consumer behavior and technology, with trust issues persisting even as people increasingly rely on digital platforms for product research.