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AI to influence 90% consumers–LBS Prof

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By Abraham Adekunle

Overview of the unfolding AI revolution in Nigeria's consumer landscape.

In a revelation that encapsulates the dynamic shift in technological preferences in Nigeria, Professor Uchenna Uzo, an esteemed figure in the field of marketing at Lagos Business School (LBS), boldly predicts a staggering 90 percent surge in the adoption of Artificial Intelligence (AI) among Nigerian consumers by the close of 2024. These insights emerged during a recent webinar, a collaborative effort between Mediareach OMD and LBS, where Uzo emphasized the increasing willingness of consumers to immerse themselves in AI tools, particularly within the sphere of online interactions. The professor underscored the pivotal role of the media in harnessing AI tools, not only to optimize operational costs but also to foster collaborative content creation with consumers and implement highly personalized campaigns and experiences tailored to individual preferences.

A noteworthy revelation from Uzo’s analysis is the cautious stance taken by 66 percent of Nigerian influencers in the media sector when it comes to relying on AI for online product or service searches. Interestingly, 57 percent of these influencers lean towards using chat boxes as their preferred platform for engaging with AI, specifically for research and decision-making processes. Consumer loyalty emerged as a central theme in the rapidly evolving market, with six out of ten consumers demonstrating a readiness to switch brands to optimize costs. Uzo emphasized that brands failing to deliver on promises or engaging in deceptive practices would inevitably face the discerning judgment of consumers. In a society where misinformation is a growing concern, Uzo disclosed that a significant 76 percent of consumers express worry regarding misinformation from AI tools.

Consumers demand authenticity amid market transformation.

An intriguing finding was that 44 percent of consumers believe there exists a distinct disparity between content generated by humans and that produced by chatbots. On a global scale, the AI market is poised for remarkable growth, with a projected compound annual growth rate (CAGR) of 37.3 percent from 2023 to 2030. By the end of the decade, the market is anticipated to reach an impressive $1.8 billion. Uzo delved further into the emerging concept of conscious commerce among consumers, predicting a future where consumers will be unforgiving of brands that fail to live up to their promises. He suggested that consumer reliance on reviews will become increasingly pivotal as individuals explore new options in a rapidly changing market. Citing a survey conducted by Forbes Advisor, Uzo highlighted that 64 percent of business owners believe that AI significantly improves customer decision-making, leading to enhanced client interactions.

Despite concerns about the application of AI across various business sectors, the survey revealed that an overwhelming 65 percent of consumers express trust in businesses that leverage AI technology. This data implies that businesses can effectively integrate AI into their operations while concurrently maintaining high levels of consumer satisfaction. The synergy between technology and manpower allows businesses to harness the full potential of AI, according to the survey. As the technological landscape continues to evolve, it is evident that Nigeria is on the brink of a significant transformation in consumer behaviour, driven by the widespread adoption of AI. The symbiotic relationship between consumers and AI, as highlighted by Professor Uzo, is reshaping the dynamics of the market, presenting both opportunities and challenges for businesses navigating this new era of technology-driven consumerism.

Profound impact of AI in navigating skepticism, shifting loyalties.

Moving forward, the impact of AI on Nigerian consumers is likely to be profound, influencing not only their purchasing decisions but also reshaping their expectations and interactions with brands. The evolution of consumer behaviour in this tech-driven landscape is a multifaceted journey, encompassing factors such as trust, information reliability, and the overall user experience. The cautious approach observed among influencers in the media sector highlights a level of skepticism that exists in the market. While the potential of AI is vast, there are concerns about its reliability, especially in critical areas such as product and service searches. This skepticism underscores the need for businesses to not only integrate AI seamlessly but also to address consumer concerns through education and transparency. The media’s role in this transformation cannot be overstated. As consumers spend more time online, media outlets have a unique opportunity to leverage AI for content creation, delivery, and engagement.

Uzo’s emphasis on collaborative content creation suggests a shift towards a more participatory and personalized media landscape, where consumers actively contribute to the content they consume. Consumer loyalty, a cornerstone of business success, is undergoing a paradigm shift. The ready willingness of consumers to switch brands for cost optimization highlights the need for businesses to not only offer competitive pricing but also to deliver on promises consistently. In an age where consumers have access to a wealth of information and alternatives, brands cannot afford to overlook the importance of trust and reliability. Misinformation is a growing concern, and AI tools, if not properly regulated and monitored, can contribute to the spread of inaccurate information.

Related Article: FG empower citizens to shape the future of AI

His revelation that 76 percent of consumers express worry about misinformation from AI tools underscores the importance of establishing robust mechanisms for ensuring the accuracy of AI-generated content. Businesses must prioritize transparency and accuracy to build and maintain consumer trust. The dichotomy between content generated by humans and that produced by chatbots is an intriguing aspect of consumer perception. While AI has made remarkable strides in natural language processing and content generation, there is still a perceptible gap between human-created content and that generated by machines. Understanding and addressing this perception gap will be crucial for businesses aiming to fully capitalize on the potential of AI in content creation and engagement.


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AN-Toni
Editor
27 days ago

AI to influence 90% consumers–LBS Prof.Overview of the unfolding AI revolution in Nigeria’s consumer landscape.Express your point of view.

Taiwo
Member
26 days ago

AI will impact 90% of customers, according to an LBS professor. Summary of Nigeria’s consumer landscape’s ongoing AI revolution. Because artificial intelligence has such immense power, both positive and harmful effects are possible. How much of an effect it will have on customers is the negative impact.

Kazeem1
Member
26 days ago

There’s no denying AI’s impact on the consumer landscape. Artificial Intelligence is getting more and more ingrained in our daily lives due to technological breakthroughs. It could improve client experiences, customise suggestions, and expedite procedures.Encourage customer participation in the creation of content and execute highly customised experiences and advertising based on specific preferences.

Adeoye Adegoke
Member
26 days ago

The fact that AI is projected to influence 90% of consumers in Nigeria is a testament to the growing impact of technology in our daily lives. The unfolding AI revolution has the potential to transform the consumer landscape in numerous ways.
AI-powered technologies can enhance customer experiences, personalize recommendations, and streamline processes. From virtual assistants to chatbots, AI has the ability to make our interactions with businesses more efficient and convenient. It can also help companies analyze vast amounts of data to gain valuable insights and make informed decisions.
However, it’s important to strike a balance between the benefits of AI and the potential challenges it may pose. Privacy concerns, ethical considerations, and the need for human oversight are crucial aspects to consider as AI becomes more prevalent in consumer interactions.
Overall, I believe that the increasing influence of AI in the consumer landscape presents exciting opportunities for innovation and improved experiences. It will be interesting to see how AI continues to shape our interactions with products and services in the years to come.

SarahDiv
Member
25 days ago

Professor Uchenna Uzo’s projection of a 90% rise in AI adoption among Nigerian consumers by 2024 signals a significant change in tech trends. It emphasizes the need for businesses to address skepticism, provide transparent AI applications, and adapt to shifting consumer loyalties. As Nigerians become more tech-savvy, delivering on promises and ensuring seamless AI integration are crucial for building trust. The media’s role in collaborative content creation and engagement is key in shaping this evolving technological landscape.