Creepy or Cool 2018: RichRelevance Study Finds 80% of Consumers Demand Artificial Intelligence (AI) Transparency

8 of 10 Americans agree that companies are obligated to tell consumers when – and how – they are using AI in their business

NYC Personalization Summit, New York – June 20, 2018 – RichRelevance, the global leader in Experience Personalization, today released its 4th annual “Creepy or Cool” survey that provides insight into consumer preferences and opinions on cutting-edge technologies shaping the customer experience, including augmented reality (AR) and Artificial Intelligence (AI).

AI & Data Preferences Take Center Stage

The new survey reveals that AI has entered the mainstream with 2 out of 3 Americans (67%) reporting that they’re at least somewhat familiar with the term. One in 3 respondents (32%) are at least somewhat positive about AI, yet an overwhelming majority (81%) think companies are obligated to tell consumers that they’re using AI – and how they’re using it.

Despite recent news cycles on how companies misuse customer data, a majority of Americans (59%) remain willing to share data in return for a better customer experience and most (40%) say it should be collected anonymously – referring to the ability to collect without explicitly linking to an individual for personalization purposes. This is on par with 2017, where 63% said they would allow retailers to collect more customer data to improve the customer experience.

“Consumers generally know that data is being collected about them and that they are benefiting from AI.  However, consumers are increasingly expecting brands and retailers to be transparent about when and how they’re using AI in their interactions,” said Mike Ni, CMO of RichRelevance. “As a result, companies are increasingly under pressure to adopt explainable and open AI systems that provide clear insight into how and why decisions are being made. Traditional black box, closed AI solutions are just not an option anymore.”

Creepy or Cool: Survey Highlights

The survey also asked Americans to share their opinions on specific technologies to improve the shopping experience. Key findings include:

Creepy

Clothing and wearables include sensors/tracking devices that allow retailers to track you in exchange for a discount.

  •      76% Creepy (vs. I0% Cool)

Companies understand your shopping habits so well that they are able to use artificial intelligence to choose and automatically order products on your behalf.

  •      69% Creepy (vs. 14% Cool)

Facial recognition technology identifies you as a loyal customer as soon as you enter and relays your preferences to the salesperson in-store.

  •      61% Creepy (vs. 24% Cool)

Cool

Robots guide you to specific products within store aisles upon request.

  •      48% Cool (vs. 32% Creepy)

You can use fingerprint scanning to pay for items and get automatic home delivery, all from the store floor.

  •      46% Cool (vs. 31% Creepy)

Millennial Divide

Younger shoppers (ages 18-29) are keen to embrace new technologies. Younger shoppers feel that AI-based personalization is valuable (66%) and are less likely to find innovation creepy. Significant generation gaps include:

Computer programs (such as chatbots) use artificial intelligence to help you answer customer service questions, rather than a real person.

  •      Overall:  41% Creepy; Millennials: 27% Creepy

An augmented reality app allows you to view products in a store and then displays associated information and recommendations, including whether you need to replenish what you have at home.

  •      Overall: 36% Creepy; Millennials: 26% Creepy

Voice assistants within your home (Amazon Alexa, Google Home) provides personalized product information and suggested products for you and your family.

  •      Overall: 41% Creepy; Millennials: 32% Creepy

Methodology

The survey of 1,037 US consumers was conducted by RichRelevance in May 2018.

About RichRelevance

RichRelevance is the global leader in experience personalization, driving digital growth and brand loyalty for more than 200 of the world’s largest B2C and B2B brands and retailers. The company leverages advanced AI technologies to bridge the experience gap between marketing and commerce to help digital marketing leaders stage memorable experiences that speak to individuals – at scale, in real time, and across the customer lifecycle. Headquartered in San Francisco, RichRelevance serves clients in 42 countries from 9 offices around the globe. For more information, visit www.richrelevance.com.

Media Contacts

Renee Newby, BPR for RichRelevance

renee@bradypr.com

757.651.6554

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