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Articles September 5, 2024

Consumer Perspectives on AI: A Surge in Acceptance

Brian Bischoff Kevin Vaughan
Authors
Brian Bischoff, Kevin Vaughan

2023 was the year AI went mainstream, and our 2023 Consumer AI Survey revealed most people felt positive — or at least neutral — about the powerful technology. One year later, consumers have had ample time to continue exploring and learning about AI, and our 2024 survey shows that their positive sentiment has increased in nearly every category. 

The surge in AI acceptance presents a compelling opportunity for businesses. Consumers are not merely open to AI; they expect its integration to enhance their lives. In the digital landscape, where convenience, personalization, and efficiency are vital, AI has become the basis of how modern customers interact with brands and services. And if they strike the right balance between ethics and innovation, customers will reward those efforts with loyalty.

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Implement or Get Left Behind

For businesses, this paradigm shift means that relying on traditional, manual processes is no longer enough. The market is evolving rapidly, and those who hesitate to implement AI could face diminishing relevance. Early adopters are not only refining customer experiences but also streamlining operations. These advances create a gap that businesses slow to adapt will find increasingly difficult to bridge.

Companies that remain confined to internal AI experimentation also risk falling behind. To maintain a competitive edge, it’s imperative to transition successful proof of concepts to full-scale, customer-facing AI implementations without delay. This involves moving beyond small-scale trials and embracing the potential of AI to transform not only internal workflows but also the end-user experience. The future of business success will be defined by those who can seamlessly integrate AI to meet evolving consumer demands while balancing transparency, fairness, and accountability, ensuring they aren’t left behind in an increasingly AI-driven world.

Growing AI Acceptance and Adoption

This year’s survey revealed a significant shift in consumer sentiment and experience with AI. For instance, we saw a 19% increase in overall AI experience since 2023. Not surprisingly, Gen Z and Millennials indicated they were very familiar with AI at 37% and 43% respectively, but Gen X and older Americans are also getting more accustomed to AI, with only 18% of those ages 43–77 indicating they were not familiar.

Our survey also found a nearly 10% increase from 2023 in respondents’ comfort with AI, as well as relying on AI’s ability to make important decisions easier. The most valuable AI-powered features or applications noted were voice assistants, personalized recommendations, and general-purpose generative AI tools like ChatGPT, Claude, and Gemini.

Generative AI (GenAI), in particular, is poised for massive growth. Our survey found a notable 17% surge in generative AI usage, with 62% using it for personal projects or hobbies. Among the most useful GenAI functions: summarizing content and information, generating written content, and brainstorming and ideation.

increase in overall AI experience since 2023
19%
increase from 2023 in respondents’ comfort with AI, as well as relying on AI’s ability to make important decisions easier
10%
surge in generative AI usage
17%

Motivation for Using AI

AI exploration among consumers is gaining momentum across the board. While efficiency and task simplification remain primary drivers, there’s a significant uptick in interest for personalized recommendations, as well as AI’s potential to enhance their efficiency and efficacy, when compared to 2023. 

In fact, we found a 28% increase in consumers who think AI can make important life decisions easier. The main themes revolve around using AI for personal and professional productivity, health and fitness tracking, financial management, personalized recommendations, and customer service support. The tasks identified as most helpful in consumers’ personal life included using AI for online shopping (58%), health monitoring (52%), and automating personal tasks (49%). Consumers also indicated they are using AI to support their travel needs through virtual assistants and dynamic booking recommendations, their energy and utilities needs through features like smart home energy management, and their sports and entertainment through personalized content recommendations, analysis, and even virtual concert experiences.

Consumers Grow Increasingly Comfortable with AI in 2024

58%

increased their AI usage as their awareness and understanding of AI benefits grew

52%

are willing to pay a monthly subscription for enhanced benefits from generative AI services

57%

are likely to interact with a brand they knew was providing AI as part of its service

54%

believe AI is capable of more than humans in certain aspects

50%

are comfortable with AI making personalized recommendations

44%

are comfortable using AI for facial recognition

What this Data Means for Businesses

With AI awareness and prevalence at an all-time high, its worth is now unquestionable. Since businesses no longer have to explain AI’s value to consumers, they’re free to focus their efforts on maximizing AI’s potential. As long they’re prepared to address and mitigate the potential risks associated with AI, such as ethical implications and data privacy issues, businesses can unlock its full potential.  

According to our data, here’s how they should proceed.

Enhanced AI

With 52% of consumers willing to pay a monthly subscription for enhanced benefits from generative AI services, monetization opportunities abound for well designed, valuable generative AI-powered apps, tools, software, and add-ons.

User-Centric AI Design

With a majority of consumers expressing increased comfort with AI-based systems if they were well designed (58%), businesses should invest in developing user-friendly AI applications with top-of-the-line customer experience to make AI more approachable, intuitive, and transparent.

Improved Efficiency

As our data shows, nearly half of consumers view automating personal tasks as a top priority. They want to use AI to enhance their efficiency and streamline their daily life. Businesses that can leverage AI to not only automate their own business processes, but consumer facing ones as well, are poised for success.

Responsible AI Adoption

Our data indicates that consumers believe companies could better communicate how they’re using AI. Indeed, 40% of people felt companies do a poor or very poor job of communicating the benefits, risks, and limitations of their AI-powered products. Consumers are also still concerned about transparency and security. To bridge this gap and foster trust and loyalty, businesses must prioritize clear and open communication about AI and data protection measures. By demonstrating ethical and transparent AI practices, companies can reposition AI from a perceived threat to a tool for enhancing consumer experiences.

Training and Education

Consumers are increasingly interested in AI and how businesses are leveraging it. To meet this demand, companies should invest in comprehensive AI
education. This includes providing training, support, and external workshops for users to maximize AI benefits. Additionally, developing internal training materials and establishing thought leadership positions can solidify the company’s expertise in the field. Educational initiatives should also address the ethical use of AI, helping to cultivate informed and responsible consumer and business habits.

It’s Time to Take AI to the People

The era of AI as a mere internal tool is over. Consumer expectations have evolved, demanding AI-driven solutions that enhance their experiences. If businesses can prioritize customer-centric AI applications and foster open communication, consumers will respond enthusiastically.

This shift toward customer-focused AI will not only improve customer satisfaction, but also drive innovation and create new revenue streams. By embracing this approach and consistently delivering value through AI, businesses can gain a competitive edge and establish themselves as leaders in the AI space. The challenge lies in integrating AI in a way that reflects both excitement for the technology’s possibilities and a cautious respect for its implications.

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Brian Bischoff

Principal, CTO

Brian leads our business strategy for our practice areas and is a thought leader in digital strategy. He provides an objective perspective through the strategic analysis of current technology trends and designs and builds great experiences for our clients.

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Kevin Vaughan

Kevin Vaughan

Director

Kevin is a generative AI enthusiast and a versatile software engineer with over 20 years of experience across various domains and technologies. At CapTech, he leverages his passion and expertise in AI, cloud, AR, and game development to create innovative solutions for complex problems including Multi-Agent AI Systems leveraging platforms like Azure OpenAI and Azure AI Services, as well as AWS Bedrock, to drive significant advancements in AI applications.

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