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AI Is Everywhere, But Consumers Are Growing More Skeptical

AI is advancing rapidly, but public enthusiasm is moving in the opposite direction. Recent surveys show that more Americans are becoming concerned about the technology, while growing opposition to data centers is turning AI’s social acceptance into a business and political challenge.

A Pew Research study found that 52% of Americans are now “more concerned than excited” about the growing use of AI in daily life, up from 37% in 2021. A May Economist/YouGov poll also found that more than 70% believe AI is developing too quickly.

The political backlash is becoming harder to ignore. Axios reported that the National Republican Senatorial Committee warned major AI companies that data center projects could hurt Republican candidates in a key Ohio election.

AI’s Growing Reputation Problem

Public concern is also showing up among younger Americans. A CNBC poll found that most respondents aged 18 to 34 did not trust nine leading AI executives to act responsibly on AI.

For many consumers, AI is increasingly associated with chatbots, AI-powered search and features appearing inside everyday products, rather than with major improvements to their lives. Google has transformed Search with AI, while companies are adding AI to products ranging from email to televisions.

At the same time, people are hearing about AI being used by students to cheat, while companies face disputes over copyrighted material used to train models and generate art, music, video and writing.

That combination is creating a difficult perception: consumers are being asked to accept the disruption caused by AI without necessarily seeing enough personal benefit in return.

Data Centers Add To The Backlash

The problem extends beyond software. Tech companies are spending enormous sums building AI data centers, but communities are increasingly pushing back over issues including electricity demand, water use and infrastructure.

According to The Wall Street Journal, companies are responding with additional incentives such as employment commitments and investments in local infrastructure. One Louisiana project even included $50,000 bonuses for teachers.

Meanwhile, some consumers are gravitating toward technology that feels deliberately less connected. Young people are showing renewed interest in dumbphones, point-and-shoot cameras, cassette players and CD players. AI-free classic iPods are also attracting attention, while offline hobbies and in-person activities are gaining popularity.

The Industry Is Starting To Take Notice

Some technology executives believe the backlash is partly a communication problem. Others are increasingly acknowledging that consumers may understand AI perfectly well but simply don’t consider its current benefits worth the trade-offs.

Airbnb CEO Brian Chesky recently said on a podcast that the industry needs to build products that ordinary people genuinely value, rather than focusing primarily on AI itself.

Anthropic CEO Dario Amodei similarly described negative perceptions of AI as a “big problem” and a “crisis of trust” in a post on X. In his view, the strongest response would be for AI companies to actually deliver on their biggest promises, including breakthroughs that could significantly improve people’s lives.

For an industry that has attracted hundreds of billions of dollars on the expectation that AI will transform everyday life, technological progress alone may no longer be enough. The bigger challenge could be convincing people that they are actually better off because of it.

Cyprus Depositors Lag Behind As Mortgage Costs Rise, CBC Data Shows

Cyprus households are earning relatively modest returns on their savings even as mortgage borrowing costs climb again, according to new Central Bank of Cyprus data that places the country among the euro area’s weakest performers on deposit rates.

Deposits Rise, But Remain Near The Bottom Of The Euro Area

The central bank’s latest analysis, covering August 2026, found that the interest rate on new household deposits with agreed maturities of up to one year increased to 1.35 per cent from 1.27 per cent in July. Over the same period, the average rate on new house purchase loans rose sharply to 4.16 per cent from 3.78 per cent.

The contrast underscores a persistent imbalance in how interest rate changes are being transmitted across Cyprus’s banking system. While borrowers have felt the impact of higher rates more directly, savers continue to receive returns that remain unusually low by euro area standards.

The CBC said deposit rates in Cyprus sit at the lower end of the euro area and remain an outlier. The transmission of market interest rate changes to deposits has also been weaker in Cyprus than in almost every other euro area country, affecting both households and businesses.

Borrowing Costs Are Closer To The Euro Area Median

The picture on the lending side is more mixed. Interest rates on outstanding loans and on new lending are broadly aligned with the euro area median.

According to the CBC, the interest rate on outstanding loans to households in Cyprus was only 0.1 percentage points below the euro area median, while the corresponding rate for non-financial corporations was 0.3 percentage points above it. For new lending, the weighted average rate on loans to households for house purchase was 0.2 percentage points below the euro area median, while the rate for non-financial corporations was 0.1 percentage points lower.

Still, the latest monthly data show a notable increase in mortgage pricing in August. The average rate on house purchase loans rose to 4.16 per cent, from 3.78 per cent in July. The CBC noted that this is a weighted average across different types of housing loans, including mortgages for primary residences and holiday homes.

Because the composition of banks’ housing loan portfolios changes from month to month, weighted averages can move even when the underlying rates offered by banks have not shifted by the same amount.

Consumer Credit Rises, Business Lending Eases

Consumer borrowing also became more expensive, with the average interest rate rising to 7.12 per cent in August from 6.94 per cent in July.

For businesses, the trend was more favourable. The rate on loans of up to €1 million edged down to 4.45 per cent from 4.47 per cent, while the rate on loans above €1 million fell more sharply to 3.67 per cent from 4.29 per cent.

Even so, new lending volumes fell significantly across the board in August. Pure new lending dropped to €251.40m from €415.00m in July, while total new lending, which includes refinancing and other operations, declined to €390.10m from €686.10m.

Pure new consumer loans fell to €19.30m from €23.90m, and total lending in that category slipped to €20.70m from €26.50m. Pure new house purchase loans fell to €114.40m from €149.50m, while total lending for house purchases declined to €141.90m from €205.80m.

Business lending also slowed. Pure new loans of up to €1 million declined to €35.50m from €52.30m, while pure new lending above €1 million fell to €77.00m from €162.30m.

Why Cyprus Deposits Stay Low

The CBC’s euro area comparison is especially telling for savers. Unlike lending rates, the interest rates on existing deposits in Cyprus remain near the bottom of the euro area, which the central bank described as an outlier.

The CBC attributed this in part to the high level of excess liquidity held by Cypriot credit institutions. Cyprus’ Liquidity Coverage Ratio stood at 313 per cent in August 2026, compared with a median of 182 per cent and an EU average of 158 per cent in June 2026, the latest available figures cited by the central bank.

The relatively short maturity structure of Cyprus’s banking sector was also identified as a factor weighing on deposit rates. Rates offered on new deposits are similarly subdued and remain close to those paid on existing balances, reflecting the same underlying market conditions.

In practical terms, this means the European Central Bank’s monetary policy cycle has affected borrowing costs in Cyprus more visibly than it has improved returns for depositors. Savers have received only a limited pass-through of higher interest rates, even as borrowers have faced higher costs.

Mortgage Preferences Are Changing

The CBC also highlighted a marked shift in the type of mortgage borrowing being taken out by Cypriot households.

The share of new house purchase loans carrying a variable interest rate has fallen dramatically, from almost 100 per cent at the beginning of 2022 to just 12.0 per cent in August 2026. That is now below the euro area median.

The central bank said this may partly reflect borrowers opting for fixed-rate loans for an initial period, typically three to five years, before switching to floating rates. The shift suggests households are becoming more conscious of interest rate risk, a development banks will need to reflect in their risk management frameworks.

A similar trend is visible when household and business loans are viewed together. The share of new loans to households and non-financial corporations carrying floating rates has dropped from almost 100 per cent at the beginning of 2022 to 55.9 per cent in August 2026, below the euro area median. The CBC said this could again partly be explained by fixed-rate periods early in the life of a loan, before conversion to floating rates later on.

The Bottom Line For Savers And Borrowers

For households, the latest data point to a mixed picture. Mortgage rates remain broadly comparable with the euro area, but deposit returns remain unusually low, while the cost of new house purchase loans rose significantly in August.

The central bank’s analysis suggests that the core issue for Cypriot savers is not that lending rates are especially high by euro area standards. Rather, it is that interest rate changes have been passed through to deposits far less fully than elsewhere in the currency union.

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