Observed Signal · Jul 14, 2026 · Market Research Report · Source: The Drum · Impact: 3/5 · Sentiment: Negative
Prophet study: AI demand rises while consumer trust falls
Prophet’s second edition of 'The AI-Powered Consumer' surveyed over 2,000 consumers across the UK, US, Germany, China and Singapore to track attitudes to Generative AI from 2024 to 2026. The study finds a 28% increase in AI usage but declining optimism (down 13 points) and falling trust in brands deploying AI (down 11 points). Consumers want AI to automate decisions (53%) and negotiate for them (49%), yet remain anxious about loss of human connection and skills. The findings show major generational and geographic variation — Gen Z in the US is more worried about brand AI use than Boomers, and China leads other markets on adoption and acceptance. The report frames this as a “demand vs trust” paradox marketers must solve.
A large, multi-market consumer study showing rising AI adoption but falling optimism and brand trust has direct implications for marketing strategy, product design and consumer-facing AI deployment.
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Key Takeaways & Evidence Grounding
- Prophet published the second edition of 'The AI-Powered Consumer', surveying over 2,000 consumers across the UK, US, Germany, China and Singapore.
- Overall AI usage rose by 28% between 2024 and 2026.
- 53% of respondents want AI to automate purchase decisions and 49% want AI to negotiate on their behalf.
- Consumer optimism in what AI can do fell by 13 points and trust in brands deploying AI fell by 11 points.
- Only 27% of German consumers believe brands deploy AI ethically versus 74% in China; China leads other markets by roughly 20–30 percentage points and is about two to three years ahead on AI adoption metrics.
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Report: Consumer AI Use Rises as Trust and Excitement Fall
Prophet's 2026 AI-Powered Consumer Report finds generative AI adoption has risen to 73% (from 45% in 2024), while consumer enthusiasm and belief in AI’s transformative promises are waning. The study reports a 7% decline in excitement about AI and a 30% drop in the share of consumers who think GenAI will handle most decisions. Concerns about accuracy and misinformation are high (71%), and 62% of consumers report frustration when companies remove human support in favor of automation. The findings suggest AI is becoming a utility rather than a novelty and that marketers must balance automation with human interaction as adoption grows but trust softens.
More AI Users, Less Trust: The AI Paradox
A t3n report summarizes a large Pew Research Center survey showing that 49% of U.S. adults now regularly use AI tools—up from 33% in 2024—with ChatGPT (OpenAI) the market leader (44%), followed by Google’s Gemini and Microsoft’s Copilot. Despite rising usage, public confidence is low: only 16% expect AI to have a positive societal impact in the next two decades while 40% foresee negative effects; about one third fear personal harm. Young adults (18–29) are the heaviest users (66%) yet also the most pessimistic (48%). Trust in institutions is weak: 67% have little or no trust in the U.S. government’s ability to regulate AI, 61% distrust developers to design technology responsibly, and 71% believe AI makes personal data less secure. The article warns the combination of coerced workplace adoption and pervasive privacy concerns poses an economic risk for AI product business models.
Gen Z Trust Gap: AI Shopping Adoption vs. Transparency Demands
New research from SAP Engagement Cloud reveals a generational trust gap in AI-driven retail. A survey of 2,000 UK consumers shows Gen Z shoppers are avid adopters of AI for product discovery and purchases, yet they are highly intolerant of opaque or intrusive AI use. While 48% have bought AI-recommended products and 37% would trust AI assistants to purchase on their behalf, 43% have switched brands due to poor AI implementation. Transparency is a key concern, with 32% prioritizing data privacy and 29% seeking greater visibility into AI decisions. Undisclosed AI use would erode loyalty for 25% of Gen Z. Conversely, personalized marketing and AI that improves experiences can strengthen loyalty (21% and 15% respectively). The findings underscore the need for marketers to balance AI adoption with transparency and context.
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