Purpose: A significant paradox undercuts artificial intelligence's promise in strategic marketing: while 92% of organizations already use AI-generated insights, 74% of executives distrust them for crucial decisions. Research Design and Methodology: This study addresses the credibility dilemma by conducting a groundbreaking blind test with 200 Chief Marketing Officers from Fortune 500 companies, analyzing identical business challenges—half answered by premier AI platforms (GPT-4 and custom LLMs), and half by experienced human analysts. Findings and Discussion: The technique found an unexpected discrepancy: whereas NLP assessment indicated AI matched or exceeded human report quality in 82% of cases, displaying higher predictive accuracy (+14%) and data comprehensiveness, executives rejected 68% of algorithmically generated insights. A multivariate study identified explanatory inadequacies as the crucial factor: AI's inability to communicate why patterns mattered (causal reasoning), base discoveries in operational realities (contextual framing), and structure insights coherently (narrative flow) accounted for 53% of the trust gap. This "analytics without understanding" dilemma was evident when CMOs ignored an AI report accurately predicting telecom churn because it overlooked how back-to-school tuition payments stretched household budgets—the explanation that made the helpful finding. The study proposes a hybrid approach that adds human-authored "why explanations" (about 47 words) to AI outputs, increasing adoption intent by 40% while maintaining 60% efficiency improvements. Implications: These findings suggest viewing algorithm aversion as a fundamental epistemic reconciliation challenge—one where narrative intelligence links computational power and human judgment. As AI affects strategic decision-making, this study gives a trust calibration plan for maximizing its potential while maintaining interpretative depth.
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