Revealing AI Involvement in Ad Creation: Effects on Authenticity, Brand Perceptions and Consumer Intentions

Abstract

This study examines the impact of disclosing AI involvement in advertisement creation on consumer perceptions, including authenticity, brand image, purchase intention, and brand trust. Two experimental studies were conducted, using a well-known brand and a fictitious brand with a between-subjects design to assess how transparency about AI's role influences consumer attitudes. Key findings reveal that AI disclosure significantly reduces perceived authenticity, which mediates negative effects on purchase intention, brand image, and brand trust. However, the impact varies with brand familiarity, being more pronounced for established brands. Additionally, consumers with greater knowledge of AI tools perceive AI disclosure more negatively, affecting brand trust.  Results highlight the importance of managing authenticity perceptions and suggest marketers should strategically disclose AI use while incorporating human elements to maintain trust and engagement.