ARTICLE

Insights on evolving consumer sentiment toward AI, generative tools and the future of agentic technology

by Arjun Chawla, VP, Asha Parmar, Associate Director and Swati Gupta, Senior Consultant
C Space 25

This article is part of a year-long, 25th anniversary series that explores where insight communities have been, where they are today, and the market and customer trends that are shaping where C Space is taking insight communities next.

After the explosive impact of ChatGPT’s introduction in November 2022, it was inevitable that market researchers would start asking consumers more questions about AI.

But rather than take the traditional research approach of testing awareness and usage of AI tools, C Space, a leader in customer strategy and innovation, took a different view. 

Gathered at an internal summit in San Francisco soon after the launch of ChatGPT, our technology insight experts stepped back and brainstormed from one of our deepest areas of expertise: the customer perspective. 

Among the provocations we considered:

— Everyone’s talking about AI, but how many people really know what AI is?

— Beyond the functional, how do people really feel about it?

— How do consumers’ perceptions of AI change based on context?

The result was the C Space AI Diagnostic, a recurring longitudinal study engaging consumer audiences about their attitudes toward the evolving AI landscape from unique angles.

For example, instead of just asking them about their self-identified level of AI expertise, we quizzed them on their recognition of a range of AI and GenAI scenarios, including many with a longtime presence in their lives.

Instead of simple scales around sentiment, we presented customers with broad banks of emotions to better understand the different dimensions and tensions that individuals might associate with AI.

And in addition to taking the pulse on practical implications of AI, we also explored how consumers feel AI stacks up against areas such as values and trust.

So far, we’ve spoken to 1,500+ consumers, uncovering insights that can be springboards for deeper audience dives for any company incorporating AI. And after three waves of conversations with consumers, a few clear patterns have emerged about how people are making sense of AI and what that means for the future, especially given the rise of agentic AI.

Soon after the launch of ChatGPT, we realized we needed to come up with an approach that would explore AI from a more human angle in a way that is still measurable and actionable across industries.

Laurie Bae, Managing Director, Tech & Financial Services, C Space

Consumer AI awareness: Broad recognition but fuzzy understanding

Despite AI’s deepening presence in daily life, many still equate it narrowly with “robots” or “ChatGPT.” While more than half say they’re familiar with AI, fewer say the same for generative AI and nearly a third remain unfamiliar with it entirely.

Most can recognize scenarios involving AI when prompted, but many remain unaware that everyday tools like search engines also use it. This AI knowledge gap suggests that people may overestimate their understanding, even as AI quietly powers more of their world.

“I knew that a lot of the scenarios involved complex algorithms but not AI. I guess I don’t know the dividing line where it officially becomes AI.” –Millennial Consumer       

Consumer trust in AI: Earned through experience, undermined by opacity

Less than a quarter of consumers say they trust AI, a figure that has held steady since the first round of the AI Diagnostic study in 2023. Trust is strongest among those who actively use tools like ChatGPT, reinforcing the idea that experience breeds confidence. 

Consumers trust AI when it delivers clear utility, saving time, enhancing knowledge, or offering personalized help, but skepticism sets in quickly when AI feels like a “black box.” Lack of control and transparency remain persistent barriers to trust.

“It’s hard to tell what’s real and what’s AI generated. I question everything I see now. While it’s good to question, it’s also taking away my enjoyment because I’m so suspicious that it’s all fake.” –Millennial Consumer


Future impact of AI: Consumers are hopeful but watching closely

Despite rising concerns, particularly around misinformation and job disruption, many still feel hopeful about what AI could unlock. Half or more continue to believe in AI’s positive impact on their lives, especially when it comes to learning, efficiency and innovation. 

Views around AI’s role in specific industries like technology, healthcare and education are becoming more stable. But doubts persist, and consumers are watching closely to see whether brands adopt AI in ways that feel responsible and human centric.

“Companies that adopt generative AI may be seen as innovative and forward-thinking, which can enhance their reputation and attract customers who value cutting-edge technology.” –Gen Z Consumer

What’s next: Agentic AI and the evolving consumer

While consumer sentiment is slowly evolving, the broader AI landscape is transforming at speed.

We’ve witnessed the explosion and rapid adoption of generative AI and now the promise of agentic AI is fast becoming a reality. PwC predicts this emerging agentic AI economy will reach nearly $16 trillion by 2030.

Agentic AI refers to systems that act with autonomy: answering questions, performing tasks and taking actions on behalf of humans. While organizations are already deploying these agents to automate complex operations, they’re now stepping into the consumer-facing spotlight.

Back in 2023, Spotify launched its ‘AI DJ’ feature, offering users a real-time, personalized listening experience with commentary and track curation. More recently, Amazon rolled out a new ‘Buy for Me” button, allowing users to make purchases directly from the brand’s site with AI assistance.

In fact, over 60% of consumers expect AI to help them with daily decision-making within five years, according to PwC last year.

For insight professionals, the challenge, opportunity and responsibility are clear — we must understand how agentic AI will reshape human decision-making and, in turn, the relationships consumers have with brands. As Salesforce Chief Scientist Silvio Savarese notes, “For consumers, interactions with brands will begin to feel almost magical.”


The AI diagnostic: A new lens on consumer intelligence

Traditional segmentation models are no longer nuanced enough to capture the shift in consumer mindset and dynamics. At C Space, we’ve evolved our AI Diagnostic — not just to continue tracking key consumer behavior metrics, but to decode how AI autonomy is transforming the consumer journey.

We’re developing a new framework that unpacks and maps dynamic consumer mindsets through psychographic, behavioral and situational dimensions. This new lens on customer intelligence is essential for businesses to understand as we enter unchartered territory. 

This model is designed to establish the archetypes that exist today and understand how they flex across contexts, from filing taxes and financial planning to booking flights for a vacation or completing online grocery shopping — ultimately pinpointing what this means for insight teams today and tomorrow.

The goal? To help market research, product and marketing teams uncover deeper audience needs and shape more relevant solutions, products and messaging in this new era of agentic AI.

To learn more, reach out.

At Escalent Group, we are leading the charge in using AI responsibly to transform market research with integrity, transparency and human intelligence at its core.  Click here for a look into our hands-on approach and AI-focused solutions.

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Meet the authors.

Arjun Chawla

VP, Tech & Financial Services, C Space

Asha Parmar

Associate Director, Tech & Financial Services, C Space

Swati Gupta

Senior Consultant, Tech & Financial Services, C Space