Signal Concealing AI costs trust for 80%, switching for two-thirds, and a premium for half

Summary

IBM quantifies the consumer backlash against hidden AI use. Four out of five consumers say they would lose trust in a brand that deliberately hid AI's role in their experience. Two thirds say they would move to another brand in that case, and half would be willing to pay more to make the switch. IBM contrasts this with consumers' tolerance for AI mistakes, concluding that people accept imperfect AI but insist on being kept informed. The signal shows that concealment carries measurable commercial costs, including customer loss and forgone price premiums.