Building or Breaking Brand Equity

Abstract

Artificial intelligence (AI) is transforming customer-brand relationships by acting as an intermediary between consumers and businesses. Trust in AI is critical in determining whether AI intermediaries strengthen or erode brand equity as firms increasingly rely on AI-mediated interactions. Although earlier studies emphasize technology acceptance and efficiency, little attention has been given to how trust in AI intermediaries affects long-term brand outcomes. This chapter, an integrative review of research on AI trust, customer experience, and brand management, examines the relationship between brand equity and trust in AI intermediaries. Drawing on the TAM, trust theory, and brand equity perspectives, it identifies key trust antecedents such as transparency, explainability, fairness, and privacy protection, and examines risks such as algorithm aversion, bias, and black-box decisions that erode trust. The chapter proposes a framework linking AI traits, trust formation, customer experience, and brand equity, and offers guidance for ethical AI design and future research.