Consumer Behavior

Consumers embracing AI with some caveats

Photo: Adobe Stock (AI generated)

December 10, 2024

While consumers are increasingly embracing GenAI, they remained concerned about consumer privacy and security.

That's a top finding from the fifth annual Deloitte "Connected Consumer" survey, according to a press release.

Additional findings include:

• While most consumers surveyed (78%) believe their digital experiences have a positive impact on their lives, they are increasingly grappling with the downsides of technology and setting more boundaries on their digital use — and that of their children.
• 4 in 10 consumers (38%) are now experimenting with or using GenAI for personal, work-related and educational tasks, and 83% of those using GenAI for work say it boosts their productivity.
• Security incidents have increased year-over-year among respondents, with 48% saying they experienced at least one kind of security failure in the past year (up from 34% in 2023). Meanwhile, 85% have actively taken steps to protect themselves from such incidents.
• Trust is critical in a data-driven world. Consumers who trust their technology providers to protect their data spent 50% more on connected devices in the past year than those with low trust in their providers.

"Digital devices are an integral part of our lives and GenAI is rapidly reshaping the way we interact with them. With GenAI usage doubling over the past year, it's clear that the more consumers interact with GenAI, the more they grow to appreciate its value," Jana Arbanas, principal, Deloitte & Touche LLP, said in the release. "At the same time, consumers are becoming increasingly discerning about the role that technology plays in their lives. Privacy and security concerns are a priority that can't be ignored. Companies that can demonstrate a commitment to both innovation and user privacy will be the ones that thrive in this evolving digital landscape."

The study found GenAI exceeds the expectations of 63% of users surveyed, and 76% of those who have used GenAI for projects and tasks feel it amplifies human creativity.

As consumers become more familiar with GenAI, they also become more comfortable with conversational AI. Younger consumers are about twice as likely as older generations to express interest in engaging with GenAI chatbots on personal issues, including turning to a chatbot "friend" (44%), conversing with a mental health chatbot (44%), or relationship coach (42%).