Why businesses judge AI like humans (and what that means for adoption)

Now, I want to be clear about something extraordinary happening in the business world today. As organizations rush to adopt artificial intelligence, they’re uncovering an unexpected truth. Even the most rational enterprise buyers aren’t making purely rational decisions. Their subconscious requirements extend far beyond conventional software evaluation standards.

Picture this scene with me. It’s November 2024, and I’m sitting in a New York City skyscraper. I’m collaborating with a fashion brand on their first AI assistant. The avatar, Nora, stands six feet tall on a digital kiosk. She has sleek brown hair, wears a chic black suit, and offers a charming smile. She waves when recognizing clients’ faces, nods as they speak, and answers questions about company history and technology trends. I arrived prepared with a technical checklist covering response accuracy, conversation latency, facial recognition precision…

My client didn’t even glance at the checklist. They asked, “Why doesn’t she have her own personality? I asked her favorite handbag, and she didn’t give me one!”

Changing how we evaluate technology

The speed at which we forget these avatars aren’t human is remarkable. Many worry about AI blurring reality and simulation. A more immediate challenge exists for businesses: a fundamental shift in how we evaluate technology.

When software begins to look and act human, users stop evaluating it as a tool. They start judging it as a person. This phenomenon, called anthropomorphism, has been studied in human-animal relationships and now emerges in human-AI interactions.

Enterprise AI procurement decisions aren’t as rational as one might expect because decision-makers remain fundamentally human. Research shows that unconscious perceptions shape most decisions. Enterprise buyers follow this pattern.

Businesses signing AI contracts aren’t just entering “utility contracts” seeking cost reduction or revenue growth anymore. They’re entering implicit “emotional contracts” often without realizing it.

Getting the ‘AI baby’ perfect?

Every software product has always contained an emotional element. However, when the product becomes more human-like, this aspect grows more prominent and unconscious.

These unconscious reactions shape how employees and customers engage with AI. My experience reveals how widespread these responses are. They are truly human at their core. Consider these four examples and their underlying psychological concepts:

• When my client in New York asked about Nora’s favorite handbag, they tapped into social presence. They treated AI as a social being requiring authenticity.

• Another client fixated on their avatar’s smile: “The mouth shows a lot of teeth. It’s unsettling.” This reaction reflects the uncanny valley, where nearly human-like features provoke discomfort.

• Conversely, a visually appealing yet less functional AI agent earned praise due to the halo effect. Attractiveness outweighed performance issues.

• A meticulous business owner repeatedly delayed project launch, saying, “We need to get our AI baby perfect.” This obsession suggests a projection of an ideal self onto AI creations. They crafted a digital entity embodying our highest aspirations.

What matters most to your business?

How can you lead the market by tapping into these hidden emotional contracts? How can you gain an advantage over competitors who simply stack fancy features?

The key involves determining what truly matters for your business’s unique needs through a methodical testing process. This approach helps identify top priorities and deprioritize minor details.

This sector is new territory with few established playbooks. Your opportunity lies in becoming a first mover by establishing methods for determining what suits your business best.

For instance, the client’s question about “the AI avatar’s personality” gained validation through internal user testing. In contrast, most people couldn’t distinguish between several versions the business owner had labored over for his “perfect AI baby.” This indicated we could stop at “good enough.”

To recognize patterns more effectively, consider hiring team members or consultants with psychology backgrounds. All four examples represent well-researched psychological effects occurring in human interactions.

Your relationship with technology vendors must evolve. They should function as partners navigating this experience alongside you. Weekly post-contract meetings allow sharing testing insights, enabling vendors to create better products for your needs.

We stand on the frontier of defining human-AI interaction. Successful business leaders will embrace emotional contracts and establish processes to navigate ambiguity. This will ultimately help them win in this emerging market.

The new gurus of business aren’t just those with technical knowledge. It’s those who understand the deeply human elements of our relationship with artificial intelligence. These hidden dynamics will increasingly determine which AI implementations succeed and which fail.

How does AI impact decision making in businesses?

Artificial intelligence can change the way businesses make decisions. AI can process large amounts of data quickly. This gives businesses insights that would take humans a lot longer to find. Automated systems can analyze trends, forecast outcomes, and suggest actions. Businesses can respond to market changes faster and more accurately.

AI can help remove some human biases from decisions. When well-programmed, AI systems base their suggestions on data rather than emotions. This can lead to fairer hiring practices or better customer service. However, biases can sneak into AI systems when they learn from biased data. Ongoing checks and balances are essential.

Summary

AI adoption in business is reshaping how we see technology. Instead of viewing AI as just tools, people increasingly treat them as social beings. Emotional interactions affect how businesses choose and implement AI. Understanding these emotional contracts can give companies an edge. Next, businesses need to explore strategies to harness AI’s full potential while avoiding pitfalls. Stay tuned as we dive deeper into the best practices for AI in business, challenges, and innovative solutions.