Will AI designs hurt your sales? | Nudge Newsletter


The Issue With AI

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There's a community on Reddit where users debate if an image is AI-generated.

This image was subject to fierce debate. Turns out it is AI-generated.

In the comments, most users say they'd stop visiting a restaurant that used AI in its photos.

Another user shared an example of their local pizza joints doing the same.

Reddit users hate these AI images.

One commenter said: "this picture alone is enough for me to never order from them."

But do AI designs actually hurt sales?

Can AI hurt sales?

In 2026, researchers Yang and Tian¹ conducted nine experiments on AI-generated products.

Participants were shown images of chairs, perfumes, potato sticks and snacks.

Half were told the product was designed by a human.

Half were told the same product was designed by AI.

Turns out, participants were 29% less willing to buy products designed by AI.

Right now, customers are put off by AI. If they're told a product is AI-designed, they'll dislike it more.

Although there's a temptation to use AI to create delicious-looking images of your pizza, be careful.

Because if customers spot it's fake, they'll flee.


Hope you liked this newsletter, folks.

Phill

P.S. I share insights like this daily on my LinkedIn account. Connect with me →

¹Yang, Z., and Tian, A. D. (December 2025). Designer- consumer similarity matters: The effect of Al-designed products on purchase intention. Journal of Retailing and Consumer Services.

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

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