Strategic consultancy and marketing research firm KS&R has published a new report that reveals a significant gap between the adoption of GenAI by companies and the acceptance of such products by consumers.

The report, titled 'The AI Adoption Gap and Consumer Needs', is based on a survey of 500 consumers, looking into their likelihood to purchase products enabled with generative AI (GenAI).

According to the report, 49% of consumers are unlikely to consider purchasing products enabled with GenAI, and only 15% said they would be likely to do so. The reluctance is higher among older consumers, but even among 18-to-24-year-olds, more than four in ten (42%) said they are not likely to purchase GenAI products, and just 17% said they were likely to buy them.

Trust emerged as a significant concern for consumers considering AI-powered products. 22% of respondents cited trust as a significant concern when considering AI-powered products. Consumers are worried about the reliability, fairness, and transparency of AI systems, leaving them sceptical about its value. Many consumers remain unconvinced that AI adds meaningful value to their daily lives. They require tangible proof of AI's benefits before they are willing to adopt it.

"The data show that despite the rush to enable consumer products with this GenAI technology many consumers mistrust AI or have yet to see the value that it could bring," said Vice President and Principal at KS&R, Kathleen McKnight. She suggests that to shift consumer attitudes, companies need to be transparent about how GenAI works and demonstrate the benefits it can provide. "GenAI is clearly going to become a key component of many consumer products despite consumer reluctance, so, to shift consumer attitudes, consumer products companies will need to be transparent about how GenAI works and demonstrate the benefits it can provide."