Do Customers Mistrust AI?

The conversation started in a very calm, friendly manner, and I already started thinking that the woman would now request a demo of my product, but the moment she heard it was AI-powered, she waved her hand, took a step back and said, “Oh, no, I don't want any AI in my home. Thank you.”

Well, these days, more and more often I keep hearing cautious remarks about AI-enhanced products. It feels like a counter-wave growing right in front of me, rolling quickly and bringing an unconscious, yet strong sentiment against anything related to Artificial Intelligence.

Let’s talk about it—this swelling mistrust of “AI-powered” products. I’ve seen the reactions firsthand: a furrowed brow, a polite but hasty retreat, a skeptical look that says “maybe for someone else, but not for me.” And as someone who works closely with both the makers and the buyers of these technologies, I can say with confidence: the AI backlash isn’t just a blip. It’s real, and it’s shaping the way we build, market, and sell.

When “AI-Powered” Becomes a Red Flag

Not long ago, “AI-powered” was the golden ticket of marketing. Every product—from your vacuum cleaner to your insurance app—was racing to slap on the label, riding the wave of excitement about all things artificial intelligence. Yet today, the same label can make people pause, or even bolt for the door.

This shift isn’t just anecdotal. Recent studies tell a surprisingly clear story. In research covered by Futurism, nearly a quarter of consumers said they’d be less likely to buy a product if they saw “AI-powered” in its description. The majority, 58%, said it made no difference—but that “no difference” hides a subtle resistance, a sense of “don’t make me think about it.” Only a small fraction—about 18%—were genuinely drawn in by the AI label.

Why this skepticism? I think it comes down to trust. “AI” used to feel futuristic, exciting, maybe even magical. But now, with every other app or gadget touting its machine learning and neural nets, people are asking tougher questions: What does AI actually do here? Who’s in charge? What happens if it goes wrong?

The Heart of the Suspicion

I’ve noticed the pushback is strongest in three big areas: home devices, finance, and anything related to health. These are the spaces where trust, privacy, and a sense of human care matter most.

Take home tech—smart speakers, connected appliances, security cameras. A few years ago, people were excited to hand over their lights and thermostats to “smart” assistants. Now, after a string of headlines about hacks, data leaks, and creepy behaviors, I see hesitation. As soon as the word “AI” is mentioned, some customers imagine Big Brother in their living room, quietly observing.

Finance is even more sensitive. When an insurance app says it uses AI to calculate your premium, many people don’t think “fairness” or “efficiency.” They worry: will the algorithm understand me, or just box me in with everyone else? What if there’s a mistake—who can I talk to? In a recent TechRadar poll, two-thirds of Americans said they wouldn’t let AI make purchases for them, even with the promise of better deals.

And health? That’s the ultimate “no-fly zone” for algorithmic trust. Most people want a doctor, not a black-box diagnostic tool. They want compassion, context, and—crucially—someone who’ll take responsibility if something goes wrong. That’s a need no AI can fill (yet).

There’s a deeper current beneath the surface—a kind of algorithm aversion, as psychologists call it. People just feel better when humans are in control, especially if the stakes are high. A computer might be right more often, but when it’s wrong, it feels catastrophic. Add to that the “black box” effect—nobody likes decisions they can’t understand or challenge.

Another piece of the puzzle: “AI-washing.” Companies have spent years hyping up their AI capabilities, sometimes stretching the truth about what the tech can do. Customers, not surprisingly, have grown wary. If you’ve ever bought a “smart” product that turned out to be not-so-smart, you know the feeling.

Let’s not forget about privacy. AI systems are data-hungry by design. People are getting wise to the trade-offs: more data means more personalized experiences, yes, but also more exposure—sometimes in ways that feel invasive or simply too much.

How Brands Are Trying to Calm the Waters

So, what are smart companies doing about it? Interestingly, many have started downplaying the AI element in their consumer messaging. Instead, they talk about “smart features,” “personalized recommendations,” or “enhanced security”—all benefits, zero techno-babble.

Others put the human front and center: “AI-assisted, human-approved.” I’ve seen fintech apps advertise that every automated recommendation is double-checked by a real advisor. In healthcare, “doctor + AI” is a lot more comforting than “AI doctor.”

Transparency is becoming a watchword, too. I’ve worked with teams who are building “explainable AI” features right into their products. They show users why a recommendation was made, and let them tweak the settings. Some offer “manual mode” buttons, giving users the choice to opt out of automated suggestions.

Ethics and privacy are now headline topics, not fine print. Companies talk openly about how data is collected, stored, and used. Certifications and third-party audits are displayed proudly on landing pages. The days of “just trust us, it’s AI” are over.

And perhaps most importantly, the best brands are educating their audiences. They offer webinars, how-to videos, and honest Q&A sessions. They invite people to see the tech in action—not as a magic trick, but as a tool, with strengths and limitations.

AI Isn’t Slowing Down—It’s Accelerating

Here’s the irony: while suspicion around AI is peaking, the technology itself is evolving faster than ever. Consumer AI is already a $12 billion market, and growing. Every major industry is racing to integrate smarter systems—not because it’s trendy, but because the productivity and personalization gains are too big to ignore.

This means the “AI wave” isn’t receding; it’s just changing shape. The businesses that will thrive are the ones who earn trust now, by being transparent, ethical, and truly useful—not just shiny or new.

And for us, as consumers and professionals, there’s a hard truth to accept. AI isn’t going away. If anything, it will become even more present in our homes, offices, and lives. The sooner we learn to live with it—not blindly, but wisely—the better off we’ll be. That means asking questions, demanding transparency, and, yes, sometimes saying “not yet” when a product or service doesn’t feel right.

But it also means embracing the learning curve. AI is the new literacy: the more comfortable we become navigating, questioning, and harnessing it, the more agency we’ll have in a world shaped by algorithms.

To me, the challenge of marketing AI-powered products in 2025 isn’t just about finding the right buzzwords. It’s about earning the right to use them—by building products that genuinely improve lives, being upfront about what’s under the hood, and inviting people into the process, not shutting them out with jargon or hype.

The future is arriving faster than most of us expected. AI is here, and it’s here to stay. The sooner we get comfortable with that—and start learning how to make it work for us, not just around us—the better off we’ll all be.