Better Together Agency - Biased Generative AI Is Bleeding Your Bottom Line and the Easiest Way to Lose Consumer Trust
The study conducted by Better Together Agency reveals that 1 in 3 consumers may discontinue using a product if its generative AI displays bias. The findings highlight the economic impact of fairness in AI beyond ethical concerns. The study emphasizes the importance of addressing bias in AI to maintain consumer trust and loyalty. The research underscores the role of communication agencies in studying and promoting fairness in AI technologies. The implications of generative AI bias on consumer behavior should not be overlooked by businesses.
Consumer Behavior and Generative AI Bias Study
1 in 3 consumers will dump your product if your generative AI shows bias. Better Together Agency's study, the only one conducted by a communications agency, sheds light on why fairness isn't just an ethical concern but also an economic one.
Impact of Generative AI Bias on Businesses
The study by Better Together Agency reveals that biased generative AI is currently costing companies customers, revenue, and market share. The data shows that 33% of consumers will abandon a product if its generative AI displays bias. Moreover, more than 80% of consumers expect businesses to actively prevent bias in their AI tools, with nearly 60% trusting brands more when their generative AI is built to be fair and inclusive.
Catharine Montgomery, Founder and CEO of Better Together Agency, emphasizes that companies can no longer overlook generative AI bias as a secondary issue, as fairness directly impacts a company's bottom line. Michael Franklin, Co-Founder of Speechwriters of Color, highlights that bias is not just a moral concern but a financial one that affects market share.
Revenue Impact and Business Performance
Better Together Agency's research exposes how bias affects businesses at every stage, with 25% of consumers choosing brands that address generative AI bias over those that do not. Trust erosion is particularly severe in sectors like healthcare, education, and finance. Tara Charne, Responsible AI Solutions Lead at FemAI, warns that consumer behavior is shifting rapidly, and companies ignoring this data are at risk of losing out to competitors.
The survey also shows that companies investing in inclusive AI development report higher customer retention rates, expanded market reach, reduced legal risks, and improved product accuracy, all leading to better business performance.
Consumer Awareness and Examples
The survey reveals consumer awareness of generative AI bias, with concerns ranging from facial recognition errors to racial and ethnic bias. Several companies have successfully navigated generative AI bias issues by investing in diverse data sets and bias audits before launch, leading to increased market share and customer satisfaction.
The financial benefits of bias-free generative AI development include reduced customer acquisition costs, higher lifetime customer value, market expansion opportunities, risk mitigation, and competitive differentiation in crowded markets.
HONESTAI ANALYSIS
Consumer expectations have shifted, and generative AI bias is not just an ethical issue but a business liability. Companies that take action now to address bias will gain the trust of their customers and secure a competitive advantage. Those who delay risk losing customers to competitors with more inclusive AI tools.