The news: Public sentiment toward AI is cautious, as limited trust and fears about real-world consequences—especially job loss—cloud views of the technology’s potential.

• Only 27% of US adults have never used AI tools, per a Quinnipiac University poll, showing a high rate of experimentation.
• However, just one-third (35%) of US adults are excited about AI and 80% are concerned about it.
• 70% say AI advancements will likely decrease job opportunities.

Even among younger groups, who are often assumed to be more optimistic, the outlook skews cautious. Eighty-one percent of Gen Zers think job prospects will decline because of AI, compared with 66% of baby boomers.

Zooming out: Real-world consequences of AI development aren’t yet clear, particularly in terms of if or when mass displacement will take place. But that’s not stopping companies from cutting workforces to prepare for expected AI-driven efficiencies and make room for AI investments.

• Oracle is laying off tens of thousands of employees amid investor pressure over AI spending, per CNBC.
• Meta is reducing its Reality Labs division by 1,500 roles to push resources toward AI-powered wearables.
• Block (formerly Square) announced in February it would lay off 4,000 employees—about half its workforce—to move toward an AI-driven operating model.

As layoffs tied to AI investments make headlines, brands leaning heavily into “AI-first” narratives may face backlash if consumers associate AI adoption with workforce reductions.

Why it matters: A disconnect between awareness and trust among consumers creates a tricky balancing act for brands.

• Adoption won’t move as fast as the tech itself. Consumers may use AI tools out of convenience or curiosity, but skepticism may limit deeper engagement, meaning brands can’t assume interest equals acceptance.
• Messaging matters more than ever. Stressing clear benefits, such as efficiency, personalization, and utility, will likely be more effective than overemphasizing automation, which could reinforce fears around job loss and loss of control.
• Transparency becomes a differentiator. With 76% of consumers saying they trust AI only some of the time or not at all, brands should clearly explain how AI is being built into operations like recommendation engines and customer service.

Implications for brands: AI is a powerful marketing tool, but consumer sentiment is lagging. The strongest adopters will be the brands that combine innovation with reassurance and show consumers where AI is being used and the value it delivers.