Consumer reactions to AI design: Exploring consumer willingness to pay for AI‐designed products

Abstract

AbstractCompanies are increasingly using artificial intelligence (AI) technology to generate promising concepts for new products which are then marketed to consumers as “AI‐designed.” Drawing on four studies and follow‐up studies, this paper explores consumer perceptions of AI design. Based on the information gap model, the studies determine that, compared with professional‐designed products, consumers are more willing to pay for products designed by AI, in which process curiosity plays an intermediary role (Study 1). Crucially, this research also predicts the boundary conditions for the positive effects of AI design. High levels of consumer knowledge lead to an attenuation in consumer curiosity regarding AI design, thereby decreasing the willingness to pay (Study 2), while the product type also has a moderating effect on the influence of the product design sources. Consumers are more willing to pay for utilitarian products designed by AI than hedonic products (Study 3). In addition, we reverify that consumers prefer AI‐designed products through a field study (Study 4). Finally, the research sheds light on how to utilize AI to promote the success of new product innovation from a marketing perspective, providing important theoretical knowledge and actionable managerial implications for future research.