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Ethics and Innovation in the Age of AI

The Future of the Pitch: Crowdfunding Investor Responses to AI Generated Pitches & Imagery

Andy El-Zayaty

Lead Researchers:

Andy El-Zayaty
Santa Clara University

Johnathan Cromwell
University of San Francisco

Research Overview

This project investigates how the rise of artificial intelligence is shaping perceptions of innovation in crowdfunding. By examining both lab and field settings, the study analyzes whether audiences value or discount products when AI involvement is revealed. The research highlights the subtle ways in which signaling AI use influences perceptions of creativity, skill, and product appeal.

Research Question:

The study aims to create an understanding of how crowdfunding audiences and similar groups respond to products that are AI generated or are indicated to be AI generated. 

Methodology

The research employed two primary methods: online randomly controlled lab experiments (via Prolific) and field experiments (via Reddit’s ad service).

In the lab experiments, participants were presented with real, human-made Kickstarter products that had been successful prior to the widespread use of AI.

  • The control group saw the product image and a basic pitch.
  • The treatment group saw the same content, but with an indicator that the product was created with AI assistance.

Participants were then asked about their interest in the product and to assess the level of skill required to create it.

In the field experiments, a similar protocol was followed. Pitches and images (with or without AI indicators) were posted as advertisements on relevant Reddit communities. Clicks on these ads served as measures of interest.

Key Findings: The Future of the Pitch: Crowdfunding Investor Responses to AI Generated Pitches & Imagery
  1. There is an “interest penalty” when products are indicated as AI-assisted, even if they are entirely human-created.
  2. Audiences perceive AI-assisted work as requiring less skill and creativity.
  3. The penalty is stronger for creative projects (e.g., art) than for technical projects (e.g., software).
  4. The penalty disappears, or even turns into a premium, when audience members are highly knowledgeable about the product space, as they may be curious about how AI can help them.

Future Implications:

The researchers hope to introduce a more nuanced understanding of how brands and firms signal AI use. Currently, the majority of products that use AI advertise the fact as a positive, but it is clear that the reality of funders’ and other audience members’ reactions to AI use is complex. We hope that future work shows more wrinkles in this relationship and highlights the negative boundary conditions of AI use.

Support from the Ciocca Center

This project was made possible through a grant from the Ciocca Center for Innovation and Entrepreneurship. The funding supported both Reddit advertisements and the recruitment of experiment participants through Prolific.