More and more companies are leveraging technological advances in machine learning, natural language processing, and other forms of artificial intelligence to provide relevant and instant recommendations to consumers. From Amazon to Netflix to REX Real Estate, firms are using AI recommenders to enhance the customer experience. AI recommenders are also increasingly used in the public sector to guide people to essential services. For example, the New York City Department of Social Services uses AI to give citizens recommendations on disability benefits, food assistance, and health insurance.
When Do We Trust AI’s Recommendations More Than People’s?
How marketers can account for consumer biases against algorithms.
October 14, 2020
Summary.
Companies are increasingly turning to AI to make recommendations to consumers. But sometimes consumers don’t trust AI’s advice and want a human’s suggestions. To understand when consumers trust one vs. the other, the authors conducted a series of experiments. Their finding: Consumers tend to believe AI is more competent at making recommendations when they are seeking functional or practical offerings and humans when they are more interested in an offering’s experiential or sensory features. These views are based on mistaken beliefs. However, there are ways that marketers can overcome this bias.
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HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.