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Can AI harm your sales? | Nudge Newsletter

Published about 8 hours ago • 2 min read

AI Designs

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A month back, the pub down the road from me erected this mural.

It tries to depict the city of Bristol, but it gets a lot wrong.

The mural shows a tower from Canada rather than Bristol. There's a bridge that doesn't belong in the city. And even the Banksy looks off.

Clearly, it's AI-generated. And local residents hated it.

Caroline Maggs told Bristol 24/7 that it "undermines artists' work".

The BMC called it disrespectful.

Others called it a "slap in the face" to local artists.

A day later, someone spray-painted "AI slop" on the wall.

After two days, the pub removed the mural.

The response was immediate and brutal.

Residents hated the AI art. Now, there are multiple reasons why: It was taking jobs away from local artists, it incorrectly depicted local monuments, and it didn't even look that great.

But I think this mural reveals something problematic for every business.

We have an inherent dislike for AI-generated designs, and that could harm your sales.

What happens to AI-designed products

Imagine you're shown two new packets of BBQ-flavoured crisps.

You're told that one packet is designed by humans, but the other packet is designed by AI.

That’s the setup researchers Yang and Tian tested in 2025.¹.

In total, nine experiments were run on different products (chairs, snacks, perfumes etc.). Each time, the product was either labelled as "AI-designed" or "human-designed".

Turns out, the AI-designed products had up to 28.8% lower purchase intentions.

It's tempting to think that AI can only improve your products and services. It's a bandwagon companies are jumping on.

But companies could learn from the Bristol pub.

When it comes to AI, there's a natural aversion that many feel.

So be careful about adding AI to your designs, there's a good chance it'll backfire.

AI designs might not work for you, but fortunately, I have over 600 insights that do work in the Nudge Vaults.​

Real humans seem to love it. Here are six happy Vaults customers talking about how they use the tool. ​

Get access to the Vaults right now →​

Or you can preview your first 50 insights for free →

Final point, in a world of AI and everything going digital, I think events and good old-fashioned networking are a solution. So, with that in mind, why not head to the Business of Marketing event in a few weeks? I'll be there! Join me.​

​Cheers,​

​Phill​

P.S. I've got a surprise for you this week. Check it out:

¹Yang, Z., & Tian, A. D. (2026). Designer-consumer similarity matters: The effect of AI-designed products on purchase intention. Journal of Retailing and Consumer Services, 90, Article 104680.

As a behavioural science practitioner, I believe in the peak-end rule.

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Nudge Newsletter

Phill Agnew

I spend 18 hours each week turning marketing psychology into readable newsletters.

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