Consumer Trust: How do consumers perceive the accuracy and trustworthiness of AI-generated recommendations versus human-generated advice

Abstract

With the growing reliance on artificial intelligence (AI) for consumer guidance, the effectiveness and trustworthiness of AI-generated versus human recommendations remain a critical topic. Building on research that highlights "algorithm appreciation" a tendency for individuals to trust algorithmic advice over human advice in specific contexts this study investigates how consumers perceive and respond to AI versus human recommendations across varying domains. Through a series of experiments, we examine whether consumers show a preference for AI recommendations, particularly when these are framed as objective and data-driven, compared to human advice, which may be seen as more subjective and personable. Our findings reveal that while consumers appreciate the efficiency of AI recommendations, they tend to favour human advice in scenarios that require emotional or personal judgment. This paper discusses the implications of these findings for businesses and highlights how understanding consumer trust dynamics between AI and human advisors can inform better decision-making tools and consumer interaction strategies.