Purpose Artificial intelligence (AI) is increasingly integrated into home appliances. While some companies choose to prominently highlight its presence by embedding “AI” in product names (e.g. LG’s AI DD Washing Machine, Samsung’s AI EcoBubble), others (e.g. Electrolux, Bosch, Mitsubishi Electric and Miele) incorporate AI without explicitly labelling it. This study aims to investigate whether and how labelling an appliance as an “AI” one affects consumer perceptions. The research explores the mechanism underlying the effect of AI labels on consumer responses and investigates boundary conditions. Design/methodology/approach The research uses a series of experiments (Studies 1–4) and text analysis (Study 5). Studies 1, 2 and 3 test the effects of AI-labelling on consumer responses across Eastern and Western cultures and investigate the mediating role of autonomy. Study 4 provides managerial implications by demonstrating the effectiveness of different framing strategies. Lastly, Study 5 provides real-world evidence using YouTube subtitles and comments text analysis. Findings Consumers prefer non-AI-labelled home appliances over AI-labelled ones. This effect is mediated by perceptions that AI curtails consumer autonomy and is moderated by culture. Consumers from individualistic cultures, characterised by an independent self-construal, perceive AI-labelled appliances as diminishing their personal autonomy and respond less favourably than consumers from collectivistic cultures, characterised by an interdependent self-construal. The negative effect of AI-labelling on individualistic consumers’ responses is mitigated when the appliance is framed as enhancing rather than curtailing personal autonomy. Research limitations/implications This investigation focuses on home appliances; future research can explore whether the pattern of results observed in this study applies to other product or service categories. Most of these studies use hypothetical scenarios; whereas this is a common practice in consumer research, testing our hypotheses in the real world and with more consequential dependent measures will enhance its external validity. Practical implications Many firms currently rely on AI-labelling to signal innovation and gain a competitive edge. The current research shows that this tactic can backfire in consumer contexts if the psychological needs of consumers are not considered. Rather than using AI as a blanket differentiator, marketers should use it selectively, recognising that it may prompt concerns about autonomy, especially among consumers from individualistic countries. To alleviate such concerns, marketers should emphasise user control features, frame AI as a supportive assistant rather than an autonomous decision maker and use framing that highlights consumer agency. The latter strategies should be adopted primarily when marketing to Western (rather than Eastern) consumers. Originality/value To the best of the authors’ knowledge, this paper is the first to examine the role of AI-labelling on consumer responses to home appliances. Given the forecasted rapid growth of the AI-enabled home appliances market, and the increasing tendency to label such appliances as AI enabled, it is critical to understand the effect of the practice on consumer responses. The research provides valuable insights for global brands, recommending branding strategies that reflect cultural sensitivities.
Cho et al. (Mon,) studied this question.