Does the Effectiveness of AI-Generated Advertising Vary Across Cultures? Evidence from Luxury Advertising

Luxury brands are increasingly adopting generative AI (GenAI) to produce advertising content, yet the use and disclosure of GenAI in advertising seems to trigger negative customer reactions. Despite a growing consensus on the adverse effects of AI adoption in advertising, the majority of research does not account for the role of individual cultural differences in shaping the effectiveness of AI- generated advertising. Building on cross-cultural advertising research and Hofstede’s cultural dimensions, this study examines whether and how disclosing the use of GenAI in luxury advertising affects advertising effectiveness in a culturally dependent manner. The study employs a cross-cultural between-subjects experiment in which participants view the same AI-generated luxury advertising with either the presence or absence of an AI-disclosure label. The results are expected to show an overall negative AI adoption effect, primarily explained by reduced authenticity and self-congruity, and moderated by cultural dimensions. The study contributes by identifying cross-cultural boundary conditions for AI-disclosure effects in luxury advertising and offers actionable guidance for tailoring transparency and creative framing strategies across markets.