Observed Signal · May 8, 2026 · Market Research Report · Source: https://martech.org/feed/ · Impact: 3/5 · Sentiment: Negative
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.
Widespread consumer adoption combined with declining trust and rising fatigue affects marketing strategies, customer experience design, and the role of automation in commerce and support.
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Key Takeaways & Evidence Grounding
- Prophet published the "2026 AI-Powered Consumer Report".
- Generative AI adoption among consumers rose to 73% in 2026, up from 45% in 2024.
- Consumer excitement about AI declined by 7% compared with prior measurements.
- The share of consumers who believe GenAI will handle most decisions fell by 30%.
- 71% of consumers worry about AI inaccuracies and misinformation; 62% are frustrated when companies remove human support completely.
Connected Companies & Entities
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
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.
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.
Bridging the Trust Gap in AI-Driven Marketing
MarTech summarizes findings from Braze’s "Global Customer Engagement Review 2026," showing a widening gap between near-universal marketer adoption of AI and consumer skepticism about AI-driven interactions. While 93% of marketers say AI helps them better understand customers, only 53% of consumers believe brands accurately predict their wants and needs. Currently 19% of consumers report using AI intermediaries to interact with brands; Braze projects this use will grow (citing 1.4x growth this year) and suggests it could reach 46%. The report outlines four possible futures for AI-powered engagement—ranging from trusted AI agents enabling personalization to broad consumer rejection—and argues that trust, transparency, proof of consumer value, consent, and governance are strategic priorities for marketers to realize AI’s benefits.
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