Pegasystems Research Reveals Confusion about AI
Staff Writer | April 04, 2017
A new global study released by Pegasystems reveals consumers are confused about what artificial intelligence (AI) really does, resulting in misplaced fears that inhibit them from embracing AI-based technology. However, these fears are often eased once they gain firsthand AI experience, which ironically many enjoy today without even realizing it.
In a survey of 6,000 customers in six countries, consumers appear hesitant to fully embrace AI devices and services. Only 36 percent are comfortable with businesses using AI to engage with them, even if this typically results in a better customer experience. Almost three quarters (72 percent) express some fear about AI, with one quarter (24 percent) of respondents worried about robots taking over the world.
These consumers may be surprised to learn they already are exposed to much more AI than they realize. Only 34 percent of respondents thought they had directly experienced AI, but when asked about the technologies in their lives, the survey found 84 percent actually use at least one AI-powered service or device—such as virtual home assistants, intelligent chatbots, or predictive product suggestions. When asked separately to identify AI-powered devices, only 41 percent knew Amazon’s Alexa and Google Home run on AI.
AI: Fear of the unknown
These findings can be traced to a basic misunderstanding of AI by consumers. Seventy-two percent confidently claimed they understand AI, but far fewer could correctly define what it is or what it can do. For example, relatively few knew AI has the basic ability to interpret or understand speech (37 percent) or mimic humans (35 percent), while only half could identify some of the most common AI capabilities, like solving problems (50 percent) and learning (57 percent).
These misperceptions are important because the study shows they have a negative effect on consumers’ openness to using AI. The data shows consumers are significantly more comfortable with AI if they think they have previously been exposed to it.
Only one quarter (25 percent) of the people who report no AI experience feel at ease with businesses using AI to engage with them. But for AI veterans, this number jumps to 55 percent higher.
Signs of optimism
Somewhat contradictory to all of this, consumers also express optimism in the power of AI. Nearly 70 percent say they want to experience more AI if it will help make their lives easier. Taken together, the survey results suggest businesses should be more transparent about the fair and pragmatic use of AI in their products and services. Companies should find non-threatening ways to expose customers to its benefits to change their misperceptions and establish trust and comfort over time.
The survey also highlighted some differences by gender and generation. For example:
- More men think they understand what AI is (80 percent) than women (66 percent). However, more women correctly identified that Siri (60 percent) and Alexa (43 percent) are powered by AI than men (54 percent and 38 percent, respectively).
- While those 55 and older are generally less comfortable with AI than millennials (ages 18-24), they are also surprisingly less fearful of AI consequences – 30 percent of baby boomers expressed no fears compared to 22 percent of millennials.
“Though AI has been around for more than 30 years, it has now evolved to the point that businesses can engage with each individual consumer on a real-time, one-to-one basis,” says Don Schuerman, vice president, product marketing and CTO, Pegasystems. “But our study suggests the recent hype is causing some confusion and fear among consumers, who may not really understand how it’s already being used and helping them every day. Businesses need to focus on using AI to develop applications that provide real value for customers to improve their experiences rather than overhyping the technology itself.”
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- RLI Selects DataCubes to Optimize Certain Underwriting Processes
- Reinsurance Software WebXL Version 4.3 Released by Prima Solutions-Effisoft Group
- Direct Online Could Grow to 12% of Small Commercial Insurance Market by 2023, Says Novarica
- David Fisher joins FRISS board as non-executive member
- Gulfstream Property and Casualty Insurance Company Selects Roost®Home Telematics Solutions
- Promutuel Insurance Extends Guidewire PolicyCenter to Support Personal Lines Including Data Management and Policyholder Digital Engagement
- Global Insurance Accelerator Announces Nicole Cook as Next Managing Director
- 60% of Carriers Planning to Increase Quality Assurance Activities in 2019, Says Novarica
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
This month, the ITA celebrates Insurance Careers Month and encourages carriers, brokers, agents and our industry associations to plan their own... READ MORE
Customization in the general sense has a very positive connotation. However, in the world of software systems, customization quite often falls short... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE