WHAT THE DATA SAY: 57% say U.S. economy is worsening – up 11 points in four months

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell and Allison Worldwide. Among the highlights of our weekly consumer sentiment tracking:

AMERICANS’ FINANCIAL CRISIS WORSENS

Nearly all Americans believe the U.S. is suffering from an affordability crisis, and many are drowning in increasing debt, based on our Harris Poll research with the Guardian.

• 95% of Americans believe the U.S. is suffering from an affordability crisis.
• 57% believe the economy is worsening – an increase from 46% who said the same in February.
• The affordability crisis is hitting everyone, with half of all Democrats, Republicans and independents saying they are having trouble affording everyday necessities like gas and groceries.
• Two-thirds – including 49% of Republicans – say they have little faith that the federal government will improve the cost-of-living crisis.
• Rural Americans are the hardest hit and most likely to say good job opportunities have disappeared in the past year and that tariffs have negatively affected American manufacturing jobs.
• On top of rising expenses, half of Americans say they are struggling to afford growing debt, including student loans.
• See also: FICO Survey Finds Credit Confusion Still Holding Back Prospective Homebuyers
• See also: Summer BBQ Costs Are Changing The Way Americans Host This Season

MANY STILL ONLY USE AI FOR SEARCH

Americans are adopting AI quickly, yet many are still using it like a glorified search engine, according to “Beyond Adoption: Paths to AI Expertise” report from Stagwell’s National Research Group.

• 58% of Americans think an AI chatbot is “looking up the answer in a huge database,” while only 13% correctly say it is guessing which word comes next based on learned patterns.
• Among people who use AI at least occasionally, 63% say they use it for quick answers to questions and 48% to learn about a new topic.
• Asked what holds non-AI adopters back, the biggest barriers are not knowing what AI can do (50%) and not knowing how to ask the right questions or prompts (46%).
• 26% of AI superusers say fear of being judged for using AI is a major barrier for the non-users.
• When asked what would help more people become more AI confident, superusers point to practical education (43%) and a more intuitive, approachable user experience (20%).

SHOPPERS WANT AI SUPPORT, NOT CONTROL

Consumers are open to AI helping them shop, yet they’re wary of hidden influence, auto-pilot decision-making and recommendations they don’t understand, according to “The Algorithmic Aisle” report from The Harris Poll.

• 72% of global consumers are comfortable with AI helping them shop as long as they make the final decision.
• Nearly three-fourths are comfortable with AI comparing prices across brands or retailers, while 71% are comfortable with AI checking whether a product claim is accurate or credible.
• 71% are comfortable with AI helping them discover new or emerging brands.
• Yet trust is shaky: 78% assume brands will try to pay their way into AI recommendations, and 76% say they would lose trust in a retailer if its AI recommended sponsored products without making it clear.
• Consumers also worry AI could narrow choice, with 74% skeptical about AI mostly recommending premium or expensive products.

BAD OFFICE DESIGN KEEPS EMPLOYEES AWAY

A return-to-office problem is less about policy and more about the workplace itself, based on new Harris Poll research with National Business Furniture.

• Nearly three-fourths of onsite employees say they’re frustrated with their workspace, and 79% say onsite improvements would increase how often they come in.
• Among hybrid workers, 77% would work onsite more often if workspace frustrations were resolved.
• Collaboration is a particular weak spot, as less than half (47%) say they can easily collaborate with others in dedicated spaces.
• 57% say they struggle to focus at work at least some of the time because of their workspace setup.
• Connection is lagging too – with only 42% saying they always/often feel connected to coworkers because of their workspace.
• The biggest day-to-day frustrations: 23% cite noisy environments, 22% say lack of privacy, and 19% point to cluttered shared spaces.
• See also: 76% believe everyday tech products are not designed with accessibility in mind

ICYMI: In case you missed it, check out the thought-leadership and happenings around Stagwell making news:

• Positive leadership = servant leadership (Ray Day) 
• America Turned 250. It Wants a Better Town, Not a Bigger Moonshot (Harris Poll and PMI)
• More Americans Are Getting Prenups, Even If They Aren’t Rich (Harris Poll and Bloomberg)
• Half of Marketers Are Guessing on What Drives Purchasing Decisions Today (Harris Poll)