Study: 80% of consumers likely to switch brands that rely on AI-generated emails

Most consumers (79%) may consider switching to a competitor brand due to the use of AI in communications, with 55% viewing AI-generated communications negatively, a study finds.

Conducted by email signature management platform Exclaimer, the “Personal touch” study surveyed 1,000 individuals from four generations, ranging in age from 16 to over 54. It aims to explore how the excessive use of AI in email may affect consumer perceptions.

The study revealed that over half of respondents (55%) believe that AI-generated communications, whether obvious or not, come across negatively. Nearly one in five (18%) consumers believe that AI is somewhat noticeable in emails and that it negatively affects the quality of brand communication. 

The leading reason for this is that consumers see AI-driven emails as less “authentic”. 41% of respondents explained that AI-driven emails reduce the genuineness and transparency of brands. As a result, 27% expressed a lack of connection with brands that use AI in email communication.

In terms of AI usage in emails, 79% of consumers said they might switch brands if all interactions were AI-based, with Gen Z (85%) being the most likely to do so, followed by Millennials (80%), Gen X (77%), and Baby Boomers (75%). 

Moreover, 88% of consumers said they will ignore suspected AI-generated marketing emails, while 51% are less likely to recommend brands that use AI in email communication. This poses a serious risk to brand reputation, potentially impacting long-term sales and growth, according to Exclaimer.

The study also revealed that consumer attitudes toward the use of AI in emails vary significantly by industry, with certain sectors facing more resistance than others.

More than half (52%) of participants believe the healthcare industry should not use or send AI-generated communications. This concern is highest in the Baby Boomer (51%) and Gen-X (61%) cohorts. 41% of respondents believe AI-driven emails make brands seem less authentic, reducing their genuineness and transparency.

The financial sector is another industry where consumers have concerns about AI-generated emails, with 18% saying that AI should not be used in this industry. Older generations, such as Baby Boomers (26%), exhibit even higher levels of concern, twice that of Gen Z (13%). The hesitance seen in healthcare and finance isn’t shared across every industry. Responses show that 6% of people are against AI-generated communications in the retail sector and only 4% in the technology industry.

Additionally, the survey showed that 32% of consumers believe that AI is most beneficial for personalized discounts and offers. This sentiment is shared across all age groups.

Carol Howley, CMO at Exclaimer, said: “The findings indicate that privacy and security remain significant concerns for many regarding AI-generated or AI-driven email communications. Whether addressing subtle inquiries or matters related to health and wealth, our research reveals that people still want a human connection and trust in the services they engage with.

“However, for those in retail and technology, people are far more likely to accept AI-generated content in communications. This highlights how businesses need to be careful and use AI where it's appropriate to avoid potentially damaging their customer relationships,” Howley added.

“AI has always been the case in marketing, consumers want to feel understood and appreciated by the brands they use or are considering using. With this in mind, companies using AI in their email communications should focus on making AI interactions subtle and human-like. This ensures that the technology enhances rather than detracts from the customer experience," she continued.

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