Brands are facing a paradox: they have access to more data than ever, but understanding consumer behaviour remains a challenge. This phenomenon is described by Neale Cotton and Paul Labagnara as “insight deflation,” where an overflow of information obscures clarity.
This paradox is compounded by AI. While it can process vast amounts of data at unprecedented speed, it cannot translate those patterns into meaningful understanding of human behaviour.
Consumers are inconsistent, their decisions are often subconscious and they can struggle to articulate their reasoning behind choices. Relying solely on quantitative data can create a misleading picture of consumer behaviour.
In an interview with B&T, Cotton and Labagnara, co-founders of The Lab, which is celebrating its 20th anniversary, said that navigating this challenge was fundamental for marketers.
“AI is effectively expanding the lens and expanding the map, but humans have always brought the conviction,” Cotton said.
“It has logic, it’s going to keep evolving but it doesn’t understand the inconsistencies of people and how we react to things,” Labagnara added.
“It leaves space for us to do a whole lot of interpretation.”
Cotton described the use of AI with the analogy of using a blender. AI is able to take information (the ingredients), blend them together (analyse) and then present you with a smoothie (results).
However, it takes the human to create the recipe (input the relevant information), drink the smoothie and either enjoy it or dislike it (human oversight).
“The chef is the human intent. It’s the judgement, the context, it’s the feeling. It’s a lived experience and accountability.”
Consumers also misunderstand their own behaviour, according to Labagnara, making it harder for marketers to predict market reaction.
“They don’t always know why they do what they do. They tell you things they think are right, but they’re giving you bum steers,” he said.
Labagnara explained that consumers may not be privy to their own behavioural purchasing patterns. Relying heavily on consumer opinions can create incomplete conclusions surrounding consumer habits.
The pair said The Lab was well suited to navigate this challenge thanks to its independent nature. Rather than anchoring their business to any particular methodology, The Lab instead poured focus into human understanding.
Cotton said: “Independence gives us the freedom to back what we believe in.”
“We haven’t defined ourselves by methodology, we define ourselves by understanding humans, and we’ve stayed agnostic to it,” he added.
The approach is grounded in the idea that new thinking, not new data, is the driver of meaningful change. Instead it can increase complexity, particularly when signals are taken at face value or misaligned.
