Consumers on AI: It’s About Engagement

January 23, 2025

Blog

Generative AI is everywhere. It’s on the phone you just looked at, the social media you consume, and that wearable that’s keeping you honest with your step count. As the technology becomes more ingrained in our daily lives, the new challenge facing companies isn’t simply innovation: It’s a matter of truly understanding consumers’ needs and delivering the products they want.

Consumer technology companies have gone all-in, promising innovation that’s “revolutionary,” “transformative” and “customized.” And while AI’s potential is obvious, even undeniable, there’s a disconnect between those bold promises and their perceived value in the eyes of consumers.

Confronting the Engagement Gap

“How will this product improve my life?” 

“Is it worth the price?” 

Consumer skepticism around AI-integrated devices defines the Engagement Gap, a disconnect between the bold promises of AI-integrated devices and how consumers perceive them.

Only 13 percent of consumers are early adopters , creating a challenge for companies to communicate how their innovative new tech applies to, and can improve, consumers’ daily lives.

And let’s be candid, new tech isn’t cheap. Premium pricing further limits adoption for “smart” devices, especially when consumers don’t fully understand what’s in it for them. 20 percent of consumers  take a “wait and see” approach, waiting until technology has been available for a while before purchasing.

So how do companies address the Engagement Gap?

It all starts with the customer.

True understanding of customer desire is a competitive edge

What does “good” look like for a consumer? 

In broad terms, we can define “good” as something that feels uniquely tailored to each consumer while resonating widely. This might mean focusing on ease of use, sustainability, affordability or other factors that match the consumers’ daily routines.

Uber’s hyper- personalized ad platform shows a strong example of this approach. Uber made experiences simple, intuitive and personalized, matching advertisers with users at meaningful moments. Imagine heading to work in an Uber when you see an ad for a discount at your favorite coffee shop next door. On the way home, an ad reminds you that your favorite TV show kicks off a new season next week.

This strategy leveraged Uber’s ability to effectively integrate consumer data to reach them at precisely the right time. Uber was intentional in its consumer-first approach, knowing they could win ad revenue and maintain strong consumer satisfaction. 

User-centricity

Devices are often positioned as futuristic and groundbreaking, but companies struggle to connect those products to practical, everyday use.
In the consumer technology industry, innovation is a necessity, a promise and a challenge. It’s also disruptive. The key is to make the disruptive feel natural, prioritizing intuitive design and matching real-world needs.

When companies steer innovation with empathy and a deep understanding of what the consumer wants, the results are loyalty, sustainable growth and life-changing solutions.

Say goodbye to jargon

Hype, technical jargon and specifications may be great attention-getters for industry and investors, but it’s white noise to consumers.
The terminology used to explain new tech often leaves consumers scratching their heads.  A staggering 71% of consumers report being confused by the way features and benefits are explained .

The most effective marketing doesn’t just sell a product; it sparks an emotional connection. The language makes consumers think, “I need this in my life.” 

Let’s get rid of the jargon and instead meet consumers where they are, marketing in a way that’s transparent, relatable and human.  

Help bridge the gap by building trust

Think about all the connected devices a person can own: smartphones, computers, routers, medical devices, video game consoles, speakers, etc. The average US household owns around 25 connected devices. Not surprisingly, users have privacy and security concerns around the technology in those devices. 

Only 39 percent of consumers say they trust companies to act with good intentions, and 43% trust companies to make honest claims . Given that information, it’s clear that offering robust and visible security measures is essential.

If companies don’t clearly communicate the privacy and security benefits of their devices, they risk having their innovative devices thought of as a “nice to have,” rather than a “need to have.” 

Closing the gap

Generative AI technology has rapidly transformed our lives and will continue to do so. As companies continue to innovate, it’s important to not let the “revolution” overshadow what the market is saying it wants.

Closing the Engagement Gap means creating technology that truly resonates, focusing on security and privacy, aligning innovations with consumer needs, and delivering products that are easier to use. In doing that work, we need communicate the benefits without leaning on jargon and hype. The consumer wants to know how technology can enhance their daily lives. 

It’s time to go back to basics and design and market technology for consumers, not at them.