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Consumers do not trust artificial intelligence (AI) advice, as the trust level for generative AI drops below 40 per cent but they turn to it anyway, according to research discussed on The McKinsey Podcast.
The research highlighted a growing contradiction in consumer behavior, where shoppers increasingly use digital platforms and algorithms for product discovery and purchase evaluation despite harboring strong skepticism toward them. "We found significant skepticism around algorithm-driven channels like social media, and in particular generative AI, where the trust level is below 40 per cent," Danielle Bozarth, global leader of McKinsey's Retail and Consumer Packaged Goods Practices said in an episode of The McKinsey Podcast. The data showed this distrust extends beyond digital channels, as recommendations from family and friends also score poorly among younger demographics. "While these consumers are bringing more sources of information into their consideration set, they trust those sources significantly less," Bozarth noted. "That creates a real challenge for brands and influencers as they try to shape the consumer decision journey." The research revealed that brand-owned websites account for minimal direct citations in AI responses. This shift forces companies to adopt generative engine optimization strategies to help algorithms interpret structured specifications, product details, and frequently asked questions. The podcast detailed four central trends redefining consumer behavior: a technology-led path to purchase, a broader health revolution, an expanding experience economy, and the rise of the resourceful consumer. Clarisse Magnin, Senior Partner at McKinsey, noted that consumers now evaluate products beyond upfront prices by focusing 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," Magnin stated. "Consumers are evaluating durability, usefulness, repairability, resale value, and other factors," Magnin added. "For executives, that means value needs to be designed into the offering from the beginning, not simply added later through promotions." The research also found that consumer adoption of generative AI tools remains strongest in high-consideration purchases such as travel, beauty, and fashion, placing pressure on businesses to adjust their operational and marketing strategies rapidly. (ANI)
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