Not Relying on Emotions: Organizations Using Algorithms are Considered Less Warm

Organizations are increasingly using algorithms in various fields. Existing research has investigated how people perceive algorithms and tasks performed by algorithms while leaving how people perceive organizations using algorithms understudied. This research reveals the “organizations using algorithms = less warm” effect, demonstrating that organizations employing algorithms are considered less warm than those employing human experts. This perception arises from the inference that organizations using algorithms resist relying on emotions. The perception is mitigated by using anthropomorphic algorithms. Consequently, this detrimental effect leads to reduced consumer support. The current research adds to the body of work on algorithm aversion by examining people’s reactions to agents using algorithms. It also identifies algorithm adoption as a novel trigger of perceived warmth toward organizations.