When being smart trumps AI: An exploration into consumer preferences for smart vs. AI-powered products

Prior to the rapid growth of Artificial Intelligence ("AI") in the consumer market, smart products received great attention from marketers and consumers. Given the recent increase in attention to AI technologies, this research explores consumers' preferences and intentions when products are framed as "smart" versus "AI-powered." While previous literature has explored AI products and smart products individually, little is known about consumers' preferences between the two products simultaneously. Three empirical experiments demonstrate that consumers show preference for products labeled as "smart" over those labeled as "AI-powered." This preference is mediated by enhanced learning anxiety related to AI. The findings provide insights for marketers applying message framing, suggesting that labeling products as "smart" may evoke more favorable consumer behavior compared to the "AI-powered" label. Moreover, this research significantly contributes to the existing literature on perceptions and intentions related to AI and smart products by concurrently exploring consumer preferences regarding both smart products and AI-powered products.