Uchenna Uzo, a professor of Marketing at Lagos Business School (LBS), has predicted a 90 percent increase in the adoption of Artificial Intelligence (AI) by Nigerian consumers in 2024.
According to him, consumers are increasingly willing to spend more time online, engaging in AI tools.
In a webinar hosted by mediareachOMD in collaboration with LBS, Uzo emphasised the importance of the media using AI tools to reduce operational costs, collaborate with consumers for content creation, and implement personalised campaigns and experiences.
Uzo’s analysis revealed that 66 percent of Nigerian influencers in the media sector remain hesitant to trust AI for online product/service searches. Additionally, 57 percent prefer using chat boxes as the primary platform for engaging with AI for research and decision-making.
He said that six out of ten consumers switch brands to save costs, and brands failing to deliver on promises or engaging in deceptive practices will face the unforgiving judgement of consumers.
Against this background, 76 percent of consumers are concerned with misinformation from AI tools, and 44 percent believe there is a stark difference between human-based-generated content and the one generated by chatbots.
Data has shown that the global AI market size is projected to expand at a compound annual growth rate (CAGR) of 37.3 percent from 2023 to 2030. It is projected to reach $1.8 billion by 2030.
He further spoke about the evolution of conscious commerce among consumers.
“Consumers will be unforgiving of brands that do not deliver on their promise and will rely heavily on reviews as people will begin to consider new options, he said.”
“64 percent of business owners believe AI improves customer decisions and thus helps in enhancing client interactions,” according to a survey by Forbes Advisor.
It said, “Despite having concerns about the application of AI in various businesses and verticals, 65 percent of consumers have trust in the businesses that use AI technology.”
“This suggests that businesses can effectively employ AI and simultaneously maintain consumer satisfaction which helps them to harness the potential from both technology as well as their manpower,” it added.
