Is a reputation crisis coming for tech?
Millennial views of big tech might tell us a thing or two.
Millennials like AI. They generally like technology.
They like it, according to surveys, when it enhances their experience with a product or a service (think data-driven product recommendations) or makes their lives easier. But we found in our Millennials and Tech Giants Survey, when they’re asked to think of AI in the broader context of society and regulation, they are effectively split. 37% think it is mostly good for society, 35% think it is mostly bad and the remainder are unsure.
On one end of the spectrum, receiving a recommendation from Netflix on what to watch next is not only innocuous, but also makes seeking and interacting with entertainment easier and more enjoyable. On the other end of the spectrum, fully autonomous robots, which are perhaps more unsettling. There appears to be a gap in making the connection between the two. This is an important theme.
People like products and services that make their lives easier or entertain them, but when they think of technology platforms, digital media and AI in the context of society, privacy and regulation, they offer a healthy dose of skepticism.
For example, in our survey, we asked respondents what big tech brands they trust with their data. Almost 95% of our respondents reported having used Facebook in the past month, but only 21% reported that they trust Facebook with their data. For Millennial consumers, the benefits outweigh the perceived risks for now, but the balance is delicate.
Technology brands, from startups to tech giants, have generally enjoyed positive reputations amongst the public. This, to some extent, has shielded major tech brands from major regulatory battles, but the perception that they are in some way different than investment banks or Big Pharma won’t last forever.
In fact, in our survey, we found that when asked if executives at tech companies were more interested in doing the right thing for society or making a profit for investors, just over half of our Millennial respondents said “making a profit for investors.”
Already, the EU has taken much broader steps to regulate big tech. This is a reality that is very much on the horizon here in the US. A steady stream of headlines about scandal in various forms have led regulators in the United States to begin to take a closer look.
To the extent that the public will exert upward political pressure on issues relating to tech, digital media and AI, Millennials will be a significant part of the conversation.
So what does this tell us? Reputation matters. Whether you are an executive at a giant tech brand, a co-founder at a fledgling startup or an investor, building and protecting reputation must be a core function of the business. It is not enough to rely solely on the utility of a product or service to carry you through crisis or scandal. The ability to plan strategically and spot potential reputational land mines is increasingly critical.
