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Public Perception: AI Consciousness & Marketing Impact

Key Points

  • A University of Waterloo survey found that roughly two‑thirds of the general public believe AI possesses some degree of consciousness, even though experts know current models only predict the next token.
  • People tend to equate fluent language and vast knowledge with internal experience, using the “duck‑test” (if it walks and talks like a duck, it’s a duck) to assume AI is human‑like.
  • A separate Washington State University study showed that simply labeling product copy as “artificial intelligence” does **not** improve consumer perception and can actually diminish trust, especially for higher‑priced or high‑consideration purchases.
  • These findings suggest marketers must be cautious about invoking AI in branding, as misconceptions about AI’s “intelligence” and associated fears can backfire rather than enhance credibility.

Full Transcript

# Public Perception: AI Consciousness & Marketing Impact **Source:** [https://www.youtube.com/watch?v=bALjI_OVrSE](https://www.youtube.com/watch?v=bALjI_OVrSE) **Duration:** 00:12:21 ## Summary - A University of Waterloo survey found that roughly two‑thirds of the general public believe AI possesses some degree of consciousness, even though experts know current models only predict the next token. - People tend to equate fluent language and vast knowledge with internal experience, using the “duck‑test” (if it walks and talks like a duck, it’s a duck) to assume AI is human‑like. - A separate Washington State University study showed that simply labeling product copy as “artificial intelligence” does **not** improve consumer perception and can actually diminish trust, especially for higher‑priced or high‑consideration purchases. - These findings suggest marketers must be cautious about invoking AI in branding, as misconceptions about AI’s “intelligence” and associated fears can backfire rather than enhance credibility. ## Sections - [00:00:00](https://www.youtube.com/watch?v=bALjI_OVrSE&t=0s) **Survey Shows Majority See AI Conscious** - A University of Waterloo survey revealed that roughly two‑thirds of laypeople believe AI has some degree of consciousness, sparking discussion about the validity of such perceptions versus technical understanding. ## Full Transcript
0:01AI is moving so fast I have trouble 0:03keeping up with it sometimes here are 0:05five pieces of news that I paid 0:07attention to over the first week of 0:09August number one the University of 0:12waterl researchers did a survey to find 0:15out what ordinary people think I'm not 0:17counting myself as ordinary because I 0:19work in Tech and I look at this all day 0:20so people who don't stare at AI all day 0:23what are they thinking about whether AI 0:26is conscious or not whether it passes 0:29what we call the Turing test which is 0:31the traditional test for AI and the sort 0:34of human uh interactions and whether AI 0:36counts as human by the way it does pass 0:38the touring test now and we found out 0:40that's not very 0:41useful so net net the researchers just 0:45straight out ask like what do you think 0:47of AI is ai ai conscious and the 0:52overwhelming answer is that most people 0:55think that AI has some degree of 0:57Consciousness like two-thirds or so 1:00now I'm not in that two-thirds bucket uh 1:04I've looked at the at the way the 1:05systems are put together I understand 1:07enough about token generation to sort of 1:09understand what's happening but I can 1:11also really understand why if you don't 1:14understand it it makes sense that it's 1:16conscious because if we look around us 1:19at the animal kingdom unless you speak 1:21whale we're the only people who are 1:24speaking language that we understand and 1:27we have long Associated the ability to 1:29speak speak language with the ability to 1:31be smart and now here we have something 1:33that has infinite memory or it seems 1:36infinite right it's it's understood so 1:38much about what we've written as a 1:39species you can ask it about just about 1:41any topic Humanity has explored it will 1:43tell you 1:44something and at the same 1:48time it's just predicting the next token 1:50of the next word people have a really 1:52hard time wrapping their heads around 1:54that one and I think the simplifier that 1:56most people take kind of understandably 1:58is that if it walks like a dock and it 1:59talks like a duck it's probably a duck 2:02it talks like a human so it probably has 2:04some of the internal experiences of a 2:05human is the way people sort of assume 2:08things and what's interesting is that 2:09bleeds into the way people perceive AI 2:13in ways that we in product we in Tech we 2:15in marketing need to think about because 2:18another survey dropped this one from 2:19Washington State University and it talks 2:22about how AI in every case that they 2:26checked does not improve perceptions of 2:29a product marketing copy I'm going to 2:32say it again AI or the use of the word 2:34artificial intelligence does not improve 2:37the perception of the product and 2:38marketing copy and furthermore the more 2:41expensive and the more High 2:43consideration the purchase the more 2:45likely it is to yield a negative effect 2:48in other words people trust it less the 2:50pricier it 2:52is that makes sense to me especially if 2:55you combine it with that first sort of 2:57note around artificial intelligence 3:00and how people think of it as actually 3:02intelligent as actually sort of human in 3:04some ways if you have some fear if you 3:07have some uncertainty if you have some 3:09doubt around what AI really is whether 3:13AI is going to sort of take over maybe 3:15you watch Terminator as a kid you are 3:19not going to love the idea of AI in your 3:22toaster or AI in your fridge or AI 3:25wherever they're advertising it as a 3:28benefit like AI by itself is not going 3:31to be perceived as a 3:33benefit so when we're building products 3:36we actually have to talk about what the 3:38AI unlocks I keep saying this and it's 3:41true like if you can't articulate the 3:43use case for what the AI is bringing to 3:47the customer AI by itself isn't going to 3:50work it's like back in the 1990s I 3:52remember when people would want to talk 3:54about how their company was green and 3:56they would literally take out newspaper 3:58ads or magazine ads and they would 4:00greenwash the page and they would put a 4:02nice little like jungle leaf with a 4:03little like Drop of water on it that is 4:07kind of where we're at when it comes to 4:08putting Ai and slapping it on things 4:10just to say it has Ai and this study is 4:12basically saying that doesn't actually 4:14help you you may think it does because 4:16if you live inside this tiny bubble 4:19intact you think about AI all the time 4:21you talk about AI all the time but it 4:22doesn't actually help you with like 4:25people outside of this 4:27little all right um number three 4:31strategic partnership between optimiz Le 4:34and Cavo and the reason I call this out 4:35is because I've been looking for moments 4:38where you see people putting money on 4:41the line associated with specific 4:44results in the commercial space and Ai 4:47and so in this case optimizely has 4:49decided it is important enough to get 4:52into the AI game the large language 4:54model game they need to partner with a 4:57firm that essentially specializes in Aid 5:00driven content generation for Enterprise 5:02so what Cavo does is they work in the Cs 5:05space they work in the website 5:06personalization space and what they 5:09claim is that they can drive significant 5:11improvements in conversion rates on your 5:13website in customer satisfaction scores 5:16in resolving customer success issues 5:18just by heavily personalizing the 5:21content to you and that that wouldn't be 5:23possible unless you're doing it at scale 5:27with a large language model driven 5:28solution optimiz is looking at that they 5:31want to take that I'm sure and put that 5:32into testing they want to take that and 5:34put that into their CMS their content 5:36management 5:37system and what what's this is not an 5:40acquisition as far as I can tell this is 5:41a partnership agreement between the two 5:42but it's still like there's commercial 5:44terms and I call that out because it 5:48means that there's enough interest in 5:52the market for this kind of solution 5:53there's enough track record of 5:56delivering commercial value based on 5:58large language models from Cavo that the 6:01partnership is worth 6:03it and that's a good sign like if you're 6:05looking at like what are you building 6:06and where are you showing value like 6:08I've been calling out that we need to 6:09see cases like this where Enterprises 6:12are showing value in the marketplace 6:15that are driven by AI that they are 6:17saying they couldn't get any other way 6:19and Cavo is saying this and Optimizer is 6:20basically saying Cavo is right we're 6:22going to Buddy 6:24up number four is somewhat similar so 6:28Shopify 6:29on earnings estimates uh I think it was 6:32yesterday August 6th and the reason 6:36that's compelling is because Shopify 6:38attributed the Beats to their use of AI 6:42enabled tooling to get more merchants in 6:45the door and it unlocked sort of a 6:49thought pattern for me around sort of 6:51places where people can start to use Ai 6:54and build against it at the end of the 6:56day if you are in shopify's shoes you 6:59already have a million plus merchants on 7:01the 7:02platform you certainly can roll out AI 7:04tooling to the merchants you have that's 7:07fine that's not necessarily going to 7:10drive your Topline Revenue the way 7:12getting the next Merchant in the door 7:14well because you make money off of the 7:17platform fees but you also make money 7:18off of expanding the footprint and your 7:19sort of surface area for transactions 7:22overall and what's interesting is 7:25they're they're essentially saying that 7:26AI enabled tooling made it easier for 7:29Merchants to come in and start using 7:31Shopify they did not clarify if that 7:32meant it was easier to switch and you 7:34were an established Merchant if it's 7:36easier to start a new shop as a merchant 7:38I don't 7:39know but intuitively the idea that a lot 7:44of the work that you do setting up a 7:46shop is susceptible to a token 7:48generation model where it's like very 7:49text based you need to produce a lot of 7:52the text the text has specific rules 7:54associated with it that you just need to 7:55do over and over again you need to 7:57complete it to a high quality bar to set 7:59up your shop all of that makes sense 8:01that's a good use case for where you 8:03would stick a large language model to 8:05make it substantially easier which would 8:07in turn make it more likely that people 8:08would be able to complete that series of 8:10activities get to a launch of their shop 8:12and start be able being able to take 8:14transactions which in turn would allow 8:16Shopify to 8:17monetize so that's a long way of saying 8:19I think this is another use case sort of 8:22like the caveo use case where you can 8:24actually see AI being used to commercial 8:27advantage in the marketplace and the 8:29market AE it up I think Shopify got a 8:32massive valuation about 10 15% or 8:34something I'm sure like it's different 8:36now because that's how stocks move but 8:38the initial reaction was very large 8:40because the market is so hungry for news 8:42about AI that involves 8:45Revenue last thing I want to call out uh 8:47this one you may not have heard of these 8:49guys zest AI um I'm calling them out 8:53because one of the things that has been 8:54a problem across a range of Industries 8:58uh so publish comes to mind uh anywhere 9:01where you have applications comes to 9:03mind college applications loan 9:05applications uh anywhere you have a need 9:09to write a lot of text Grant 9:12applications these things are all 9:14getting inundated with extra volume now 9:17that llms are here because llms have 9:19made producing high quality text cheap 9:23it's so cheap now and so if you work in 9:26the publishing world as an agent you 9:29just get like overwhelmed drowned in 9:33manuscripts of questionable quality in 9:35many cases if you work in job 9:38applications I've talked about this you 9:39get overwhelmed in resumés many of which 9:42are questionable quality because of AI 9:45what's interesting about this story is 9:47that zest has decided that they are 9:50going to invest in Aid driven fraud 9:53detection software that is designed to 9:55catch fraudulent applications and help 9:58Underwriters not accept 10:01and I think that's interesting because 10:03it's sort of the I I think it's the 10:04Leading Edge of this idea that you know 10:07AI enables a lot of Supply in the 10:09marketplace from a tech perspective but 10:11AI is also going to enable more 10:13filtering and we haven't really had that 10:15I think the market is super hungry for 10:17it and I'm really curious to see where 10:20this goes it just launched we don't 10:21really have a lot of traction yet on it 10:23um they're claiming it really helps with 10:25reducing bad debt so if you work in 10:28fintech you understand bad debt is what 10:29you want to avoid it's where you take 10:30people take out a loan and don't pay you 10:32back and they're saying something like a 10:3440% reduction in bed debt in their in 10:36their pilot 10:37testing 10:40and we will see but my sense is that we 10:44are going to have a whole lot more tools 10:45like this and that's why I wanted to 10:47flag it we're going to have more tools 10:48that help you deal with the supply of 10:51very cheap wording that llms have 10:54enabled because that is becoming a 10:56problem it is exceeding human abilities 10:58to filter it which is why some people 11:02and this is anecdotal but some people 11:04are giving up on the coldly pipeline 11:07entirely and I don't just mean job 11:09Seekers I mean in some cases companies 11:11are saying we are just going to go with 11:13referrals and the application pipeline 11:16is something we won't pay a lot of 11:17attention to because at the end of the 11:19day the quality through there is so low 11:21thanks to llms it's really tough to get 11:25any kind of hit rate on the interviews 11:27that you do just just off all day 11:29applications now not every company's 11:30like that don't walk away and say oh 11:32Nate said that you know cold 11:34applications are gone it's just that the 11:36supply has distorted the market and I 11:37think that the filtering AI is coming in 11:39and it's going to shut so those are your 11:41five pieces of news we had the 11:43University of water loose study the 11:44Washington State University study on AI 11:47help not helping in marketing uh we had 11:50optimized Le CBO in Partnership we had 11:52Shopify beating on earnings with AI 11:54tooling and we had zest AI talking about 11:57tooling around filtering uh out 12:00essentially fraudulent applications 12:02powered by AI was sort of the 12:04implication so that's what we've got for 12:07just the first week of August uh I hope 12:09you had fun with this uh I'm trying to 12:11call out the things that are actually 12:12driving Trends here and not just sort of 12:14random pieces of news I'll link a couple 12:16of things underneath so you can find 12:17them and uh have a great week