Paid AI Application Trends Show Growth in Smart Home AI Service Demand



Parks Associates’ latest consumer survey of 8,000 US Internet households finds that 15% of US Internet households use a paid AI application. Of those paying for generative AI apps today, 75% are willing to pay for a smart home AI service. 


The Quantified Consumer study, AI in the Smart Home: Applications and Consumer Perceptions, quantifies consumers’ familiarity with and use of generative AI and gauges their perceptions and concerns with artificial intelligence.


Parks Associates Chart: Generative AI Familiarity and Use by Smart Home Device & Security System Ownership


Parks Associates research finds households that have smart home or security solutions have far higher rates of usage and familiarity regarding generative AI than the average US household. Companies with AI tools and smart home solutions will benefit from sharing strategies across teams on how to best connect their solution with these unique user groups to drive engagement and early adoption.


Additional data:


  • Advertising a product as having AI could make consumers less likely to buy those products today, but smart home and security products could be exceptions, where AI marketing had a net-positive effect on purchase intentions.

  • 81% of security system owners find at least one safety-related AI-powered benefit valuable.

  • Households with children are far more interested than others in home management features.

  • Parks Associates also released a white paper on the topic, AI Transforms the Smart Home Experience. This white paper explores how AI applications are reshaping home automation, with a focus on improving customer interactions and service models.


Elizabeth Parks, President and CMO, Parks Associates


Consumers are telling us they value devices that understand context and can take actions on their behalf. AI familiarity is accelerating and reshaping how consumers evaluate smart tech. Service providers can partner with smart home and security brands to target these users as early adopters of AI-enabled solutions. These early adopters are critical audiences to win and then convert to influencers for more mass-market customers down the line.



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