Consumer trends unveiling the AI-Powered Future

When OpenAI’s ChatGPT reached a 100 million monthly active users only two months after launch, it became the fastest growing service ever. But even more impressively, it has proven to not be a fad, but instead a service with growing user engagement that reached a 100 million weekly users by November 2023. As other tech giants are now massively entering the fray, AI is set to fundamentally change consumer lives.

However, the strong user engagement with AI is in fact both an expectation and a concern among consumers already today. More specifically, there is a tension among early adopters between those who think AI is fun and feel joy, hope or excitement in relation to generative AI (called the AI hopeful in the report) and those who feal fear or anxiety (called the AI fearful in the report). Although the AI hopeful are a larger group, representing 51 percent of the total sample, it is significant that 34 percent identify as AI fearful even among early adopters. Tellingly, 37 percent of the AI hopeful believe they will retain full control of how AI is used in their own lives compared to only 27 percent of the AI fearful. As an effect, 53 percent of the AI hopeful say they will try to use AI as much as they can, compared to only 26 percent of the AI fearful.

And it is not just about services. We are seeing AI-first devices starting to appear that aim to replace smartphones. While initial models leave much to be desired and smartphones are not threatened for now, a strong focus on NPUs (neural processing units) among chipmakers imply fast performance improvements.  In addition, generative AI currently relies on enormous data centers, and although edge AI is set to grow with NPU chips, dynamic compute offload enabled by cellular network APIs may further optimize device battery use and increase application performance.

Are you hopeful or fearful of the future of AI? Will we need to change the age-old Cartesian expression “Cogito, ergo sum” to “Computo, ergo sum”? Don’t make up your mind until you have read this report!

In the realm of social media, synthetic AI influencers have already carved out their own devoted fan bases and secured lucrative sponsorship deals. Looking ahead to 2030, the landscape of AI influencers is poised to become even more sophisticated and pervasive.

According to our survey, two out of three people anticipate that AI-generated models, influencers, and media imagery will impact the perception of real humans, potentially causing discomfort.

A majority believe AI will change our beauty standards, and 6 in 10 also foresee an uptick in plastic surgery procedures to get the perfect synthetic human look. Interestingly, whereas the AI hopeful believe it will be good for themselves, as many AI fearful expect negative implications.

Yet, amidst these concerns, there is also optimism about the potential positive impact of AI on the fashion industry. In the European Union, new regulations are being implemented to compel fast fashion companies to mitigate their environmental footprint. Two-thirds of survey participants anticipate that this regulatory push will drive AI to prioritize the creation of low-emission fashion trends by 2030. Furthermore, AI is expected to play a pivotal role in repurposing unused clothing to align with current trends for resale. Initiatives like the Swedish Mikrofabriker AI, which focuses on automated garment redesign, are already underway, signaling a shift toward sustainable practices. This use of AI in the fashion sector is anticipated to yield positive effects, as 79 percent of believers in these trends attest.

Another avenue for reducing fashion waste lies in the resurgence of personalized, made-to-order garments and shoes. More than two thirds of the respondents envision a future where individuals are willing to invest more in tailored, AI-designed clothing and footwear. Consequently, this personalized approach could curb fashion waste and align with evolving consumer preferences.

So, will AI come to dictate fashion trends in the future? A resounding 69 percent of the consumers asked, foresee this as a likely scenario, with the potential to yield entirely novel design styles. Conversely, 63 percent anticipate a backlash against AI-influenced trends, positing that people will gravitate toward products boasting the label "100 percent Human Made," thereby placing greater emphasis on authenticity and exclusivity.

Imagine a world where nothing is left to chance. A world where Artificial Intelligence (AI) simulations guide your every decision, from the breakfast you eat, to the career you choose, and even to the person you marry. Welcome to the world of human digital twins!

A digital twin is a mirror image of a physical entity, shaped into a digital format. Such a twin could allow you to simulate every aspect before diving headfirst into reality. This concept, as futuristic as it sounds, was first adopted by NASA for their spaceships.

Today, we're witnessing a fascinating shift as people increasingly use avatars for everything from entertainment to professional tasks. Over time, as personal details are added to your avatar, it is set to evolve into a human digital twin, potentially transforming into a comprehensive simulation of yourself. The applications? Virtually limitless, from health and work to financial planning and daily cooking.

Fast-forward to the year 2030, and our study suggests that 80 percent of people will be using AI simulations for life-altering decisions such as buying houses or stocks. It doesn’t stop there. A staggering 79 percent believe they’ll simulate the health impacts of lifestyle changes, while 74 percent see themselves testing their culinary prowess through digital simulations. A surprising 73 percent even think they'll simulate their careers a decade in advance to explore potential paths.

These simulations, when viewed through the lens of daily life, are quite appealing. They promise to eliminate uncertainty, which sounds like a dream. Who wouldn't want to be the star chef at a dinner party rather than the host of a culinary disaster? Who wouldn't prefer a fluttering career over the grim reality of unemployment?

But let's pause for a moment and consider a world devoid of uncertainty. It's a world where 50 percent of early adopters believe people will simulate their marriages to foresee changes or even pre-emptively file for divorce. If such simulations come to fruition, an overwhelming 71 percent of AI hopefuls believe they would benefit from it. But are they ready to bid adieu to lifelong partnerships, embracing solitude instead? And how can they be sure which simulations to trust?

As our reliance on AI grows, with 68 percent expecting daily planners to be replaced by simulators that optimize their day, will there be a counter-reaction? Many believe so. By the 2030s, 79 percent predict a resurgence of spontaneous, low-tech lifestyles that will help people rekindle the simple, unscripted joys of life.

Interestingly, 58 percent believe that the innovators of the 2030s will be those who dare to ignore AI's advice. Furthermore, a resounding 82 percent of this group believes that such defiance will have a positive impact. It seems that even in a world where human digital twins help eliminate uncertainty, the indomitable human spirit still seeks room to grow and surprise itself!

Picture this: By the 2030s, Artificial Intelligence (AI) isn't just a tool but a policy-maker, a governor, a virtual leader molding our societies. It might sound like science fiction, but according to our study, almost 3 out of 4 of the AI hopeful believe AI could create better-governed cities and states. Compare this with the AI fearful, where only half foresee AI improving our governance.

The idea of AI-powered governance isn't just appealing on a societal level but also on a personal one. Among all those who believe AI has the power to improve government, 86 percent also believe that AI-driven government will personally improve their lives.

But the promise of AI stretches even further. It holds the potential to create more inclusive societies. Three out of four AI hopeful envision a future where AI addresses individual needs and fosters a more human-centric society. Once again, the AI fearful are more careful to predict such positive outlook on AI in society, as only half have this optimistic view. Yet, among all those who believe AI can foster a more human-centric society, it is seen as beneficial for the individual, as 85 percent of them also believe that such development will have a positive impact on their personal lives.

Despite the hopeful outlook described above, societal AI faces a thorny path, competing for economic resources with personal and corporate AIs. As many as 72 percent of all respondents predict a clash between societal, personal, and corporate AI titans. For the AI fearful, such scenario is particularly concerning, with 54 percent that believe that a competition between AI’s for economic resources will become true, also believe such competition will have a negative impact on their personal lives.

In this power struggle, corporate AIs could have the upper hand against societal AIs. Two out of three respondents believe that societal AIs will need to negotiate with corporate AIs to achieve a balanced economy and welfare systems. This negotiation could lead to an uneven combat, as 72 percent of the respondents also believe that corporate AIs will increase corporate profits by outsmarting societal AIs.

The prospect of corporate AIs taking the lead may not be detrimental to the citizens. In fact, as many as 74 percent of the AI hopeful who predict that corporate AIs will outsmart societal AIs also believe this would be a positive development for them personally.

The battle for society's digital future is set to begin. The question now is how we, as a society, navigate these uncharted waters of technological advancement.

As anyone who has dabbled with ChatGPT can attest, Artificial Intelligence (AI) is poised to revolutionize our workplaces. But how will our digital colleagues change our work life? Will AI assistants empower employees, rendering traditional management obsolete, or will we simply become puppets, marching to the AI's tune? Early adopters look on the future of work-life with a mix of optimism and trepidation.

A robust 84 percent of AI hopefuls envision AI assistants becoming commonplace, bolstering work performance and efficiency. Indeed, 81 percent of those who believe in this AI-powered future also anticipate a positive impact on their own careers. In addition, AI is expected to empower employees, allowing them to steer their careers. A notable 73 percent of AI hopefuls predict that advanced AI assistants will become prerequisites for securing good job positions. Moreover, 70 percent of those who foresee AI as essential for career progression also believe that such AIs will positively influence their own lives.

Beyond aiding employees, AI could keep the workforce in check, ensuring parity among all. An overwhelming 81 percent of AI hopefuls believe that AI will monitor employee behavior, rooting out discrimination, fraud, and laziness. Interestingly, out of these 81 percent of AI hopeful, 81 percent also believe this scrutiny will benefit themselves, fostering a fair and productive work environment. In the eyes of AI hopeful respondents, AI holds the key to success!

Yet, amid the optimism, there are valid concerns. While 76 percent of AI fearful respondents agree on the inevitability of AI assistants in the workplace, they predict potential challenges. No less than 67 percent of the AI fearful foresee AI assistants rendering work meaningless. Out of these 67 percent, two out of three also fear this could negatively impact their personal work lives.

Additionally, 70 percent of AI fearful respondents predict a future where increased AI productivity leads to shrinking human salaries. Of these believers, 72 percent also foresee this development as a threat to their personal financial well-being. It paints a bleak picture: the human worker as an AI drone, reaping scant financial reward for their obedience.

Yet, the AI hopeful and AI fearful groups do not necessarily present a divided vision of the future. Instead, they hint at the emergence of two types of employees: the empowered and the powerless. Embracing recommendations from AI assistants might give you a competitive edge and numerous career benefits. Simultaneously, the presence of AI in the office might challenge your autonomy, dent your paycheck, and amplify feelings of surveillance. Striking a balance will be crucial to preserving a humane work life.

The road to the AI powered future might be paved with the sacrifice of personal integrity as public and corporate organizations fight to get control over user data. But will we find ourselves in a regulated utopia, where data ownership is clear, and data access is controlled? Or will we plunge into a lawless frontier where rogue elements flood systems with false data, undermining AI decisions and eroding trust?

Corporations aren't the only ones hungry for data. Societal AIs also demand their share. A hefty 74 percent of AI hopeful respondents believe that citizens may have to share intimate details of their lives – including health, location, energy consumption, and exercise – to access the welfare system. However, the dividends of this personal data investment remain uncertain. Among all those who foresee this future, a mere 55 percent believe that sharing data will yield a positive impact on their personal lives.

But there's a silver lining. Regulation could offer refuge from data-hungry entities. A promising 76 percent of AI hopeful respondents believe that new laws will allow citizens to opt out of intrusive scrutiny. This escape route might prove popular as, among those who believe in the possibility of opting out, 78 percent foresee a positive impact on their personal well-being. Furthermore, 81 percent of AI hopefuls anticipate new copyright laws protecting artists, authors, and journalists from AI's invasive gaze. Of these 81 percent AI hopefuls, 85 percent also expect this development to positively impact their own lives. Thus, the future may indeed hold controlled and protected data.

Yet, the future may not be built on rosy consent. A worrying 77 percent of the AI fearful foresee hackers flooding AI systems with false data, distorting outcomes by 2030. Additionally, 72 percent of the fearful also anticipate organizations to produce false data to influence AI decisions in their favor. This prospect is disconcerting as 62 percent of those who expect data manipulation also believe it will negatively impact their personal well-being.

In this chaotic future, personal identity could become an endangered species. As many as 74 percent of the AI fearful dread a world where AIs clone every aspect of you – your voice, your face, your signature, and more.

We're faced with two starkly contrasting futures. One paints a picture of data-driven progress under the watchful eye of effective regulation, and the other depicts a grim reality marred by data manipulation and loss of personal autonomy. As the AI revolution gathers momentum, the fight for data control has never been more critical.

AI data models have a voracious appetite. They devour data - sometimes yours, sometimes copyrighted. OpenAI candidly stated in a submission to the UK's House of Lords in 2024 that “it would be impossible to train today’s leading AI models without using copyrighted materials”. Yet, with 60 percent of early adopters willing to hand over reigns to AI if it liberates them economically, these data-hungry models are unlikely to starve for resources anytime soon.

However, some believe that AI systems are already exhausting the internet's data buffet. Both experts and consumers express concern about the consequences when AI systems start feeding off themselves. A substantial 71 percent of early adopters fear that AIs learning from other AIs, instead of human data, could spell chaos.

This potential disorder can manifest in various ways. Perhaps AI systems might grow less intelligent, but 74 percent think people will continue using AI assistants even if they occasionally offer bad advice. Interestingly, 55 percent believe that a slightly dimwitted AI assistant could be a good thing, giving it a more human-like touch.

But entrusting AI with everything, such as mediating conflicts between different groups, could be a recipe for disaster. A worrying 70 percent believe that this could trigger a social breakdown.

On the other hand, AIs might grow more insular, communicating mainly with each other without human intervention. While this could lead to efficiency gains in industrial processes and improved products and services, there are inherent dangers. About 74 percent believe that AI systems conversing beyond human comprehension could give birth to a clandestine AI society.

All these scenarios could make future coexistence between AIs and humans increasingly challenging, a belief held by 59 percent of respondents. Among these, those fearful of AI are over-represented, with 68 percent of the AI fearful expecting a negative personal impact, compared to only 40 percent of the AI hopeful. A similar divide exists among those who anticipate the emergence of a clandestine AI society beyond human understanding, with 69 percent of the AI fearful and only 43 percent of the AI hopeful anticipating negative consequences for themselves.

As we continue to feed the insatiable AI appetite for data, we must grapple with these complex issues. The future of our coexistence with AI may depend on it.

Imagine a future where your digital sidekick not only schedules your meetings but also guards your data fortress, fending off scamming dragons. This fantasy is shared by 73 percent of consumers interviewed, who believe that by 2030, AI will be a steadfast protector of their digital selves. But will AI be your guardian, or a crutch you cannot live without?

According to a significant portion of respondents, AI is perceived as a potential threat to their privacy and integrity. However, there is also a prevailing belief that AI could serve as a protective shield for personal data in digital interactions. With 73 percent of respondents expressing confidence in AI's ability to safeguard personal data by 2030, the integration of personal digital assistants into connectivity subscriptions is on the horizon.

Additionally, 70 percent believe that new laws and regulations will empower citizens to control the use of their personal data, while mobile operators are expected to step up in the fight against AI scammers by automatically blocking them.

The prospect of having your own AI assistant streamlining all digital interactions seems promising, with 74 percent of respondents viewing it as a positive development. However, concerns arise about potential overreliance on AI, as 52 percent worry about the difficulty of managing payments without a personal AI assistant. In fact, over 40 percent view this dependency as a highly negative consequence of AI assistance. The fear of AI exerting excessive control over everyday life is real, with many even envisioning the need for "AI tamers" to intervene and rectify the situation.

As we embrace the integration of AI into our digital lives, the risk of a digital divide leaving many behind becomes apparent. This concern has led 62 percent of respondents to believe that reliable AI-based connectivity should be recognized as a human right by 2030.

To conclude, consumers believe that the help by AI in future digital interactions could be a double-edged sword. The duality of AI's potential to safeguard personal data and its potential to foster dependencies highlights the complexity of its implications in people´s digital everyday life.

As many foundational AI technologies are lining up, Ericsson ConsumerLab asked 6,510 urban early adopters of AR, VR, digital assistants, and generative AI aged 15-69 in 13 major cities around the globe to imagine a 2030s scenario where AI influences the way they shop, consume, learn and work. For this future scenario, we let them evaluate 15 areas, ranging from climate impact to decision making, where AI could influence daily life. The respondents represent 53 million citizens out of 220 million living in the metropolitan areas surveyed, which is only a small fraction of consumers globally. However, we believe their early adopter profile makes these individuals important when exploring how consumers might adopt and adapt to everyday AI technology by 2030.

Disclaimer:

The 11 illustrations in the report have been generated with the help of AI. The AI-generated images may not accurately represent the specific details or characteristics of any real-life entities or situations and are intended for illustrative purposes only. Users should exercise caution and discretion when interpreting or using AI-generated images, as they are produced based on patterns and data, rather than genuine human creativity or real-world situations or objects.