The Impact of Adopting and Disclosing Generative AI in Digital Advertising on Brand Perceptions

The rise of generative artificial intelligence (GenAI) has significantly transformed digital advertising, enabling the automated creation of marketing content. However, concerns persist regarding its impact on brand perception, particularly in terms of brand love and authenticity. This study examines how the adoption and disclosure of GenAI-generated video advertisements influence consumer perceptions. Using a 2x2 between-subjects experimental design, the research investigates the interaction between GenAI adoption (AI-generated vs. human-created) and disclosure (label present vs. absent) on brand love, with brand authenticity as a potential mediator. Expected findings suggest that disclosing AI-generated content negatively affects brand love, while perceived brand authenticity may mitigate this effect. The study contributes to the literature on AI in branding and offers practical insights for marketers navigating the balance between technological innovation and brand trust in digital advertising.