I Think, Therefore AI Am: Consumer Perception and Usage of Artificial Intelligence Tools

The growing integration of AI into daily life has sparked both excitement and concern. From enhancing productivity to shaping consumer decisions, AI’s influence continues to grow. Nearly 40% of global jobs are now exposed to AI, with advanced economies at higher risk, according to the IMF, while 20% of American workers are in high-AI-exposure roles. Tools like ChatGPT and Google’s Gemini are battling for LLM dominance, and threaten to cannibalize traditional search. Meanwhile, consumers are increasingly relying on AI to make decisions on everything from restaurants to entertainment. As competition heats up, ChatGPT has managed to maintain its leadership position, while new entrants like Apple Intelligence are carving out their own niches with alternative approaches. With insights from occam, this blog explores the continuing evolution and adoption of LLMs and their impact on consumer behavior.

October 7, 2024

Perception and Usage of AI

Tool or Trouble? Despite concerns about job displacement, AI is widely seen as boosting productivity.

User trust: Though significant skepticism remains, almost half now say they trust AI-generated answers.
Future of search: A substantial contingent believes ChatGPT could replace Google Search. Both Google and OpenAI are encroaching on each other’s strongholds. Google is showcasing its Gemini LLM results prominently above conventional search listings, while OpenAI is developing SearchGPT, a prototype with new AI-driven search capabilities.

Reliance on AI: Almost 1 in 4 people are using AI tools every single day.

Shift in Search Behavior: According to occam, a significant fraction of search tasks has shifted to ChatGPT in the last four months. The rise is entirely attributable to increased ChatGPT usage among existing users, as this data was only collected from those using the tool.

The LLM Challenge to Search

Rising Awareness of Google Gemini: Google Gemini and Gemini Live for Android phones were unveiled at Google I/O in May, likely contributing to the rising awareness of Gemini LLM.
Other AI Tools with Momentum: AI tools focused on coding assistance and image generation seem also to be experiencing notable percentage growth, despite remaining at low absolute levels of awareness.

Steady Growth Amid Competition: ChatGPT account ownership has surged in the past year despite increasing competition.

Battle for User Attention: Though ChatGPT still controls LLM mindshare, Google is leveraging its incumbency in search by placing Gemini LLM results above traditional search results, boosting Gemini mindshare.

AI’s Growing Impact on Consumer Choices: AI usage has surged for travel, restaurant recommendations, product reviews, and entertainment, highlighting its growing role in shaping everyday consumer choices.
Entertainment Tops Growth: Entertainment saw the largest increase in LLM usage at 215%.

ChatGPT for Work Usage Demographics

AI Varies Meaningfully Across Industries: Not surprisingly, those in tech sector and those with managerial responsibilities show the highest adoption AI rates, while adoption remains lower in support-related jobs.

Apple Intelligence

Coming Soon: Apple will launch its AI platform, Apple Intelligence, with iOS 18.1 in October.
Still Under the Radar: Despite an intense marketing campaign, awareness even among iPhone users remains modest.

Familiarity Drives Purchase Intent: Consumers familiar with Apple Intelligence are significantly more likely to purchase the iPhone 16, with 53% indicating intent to buy, compared to just 17% of those unfamiliar with new AI features.

Source: Analysis based on occam™ proprietary AI-enhanced research platform with various data sources, including a wide range of questions asked to over 1000 respondents per day with over three years of history. Information is census-balanced and uses occam’s™ proprietary AI algorithm that ensures minimal sampling bias (<1%). Contact us for more info.

Signup for our newsletter

DISCLAIMER : This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is general in nature and is not directed to any category of investors and should not be regarded as individualized, a recommendation, investment advice or a suggestion to engage in or refrain from any investment-related course of action. Investment decisions and the appropriateness of this material should be made based on an investor's individual objectives and circumstances and in consultation with his or her advisors. Information is obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this material and is subject to change without notice. Any views or opinions expressed may not reflect those of AlphaROC as a whole. Third-party economic or market estimates discussed herein may or may not be realized and no opinion or representation is being given regarding such estimates. This material includes estimates, outlooks, projections, and other “forward-looking statements.” Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed. Investing entails risks, including possible loss of principal.

AlphaROC occam case studies are for illustrative purposes only. This material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. The firm, its employees, data vendors, and advisors may hold positions, including contrary positions, in companies discussed in these reports. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described in these case studies will be profitable. Investors should consult with their advisors to determine the suitability of each investment based on their unique individual situation. Past performance is no guarantee of future results.