Is that your best effort? How AI-use disclosure in digital advertising affects perceived effort and engagement

As AI technologies extensively reshape the marketing industry, it is imperative to study how the use of AI technologies affects consumer behavior. While AI can improve efficiency, consumers often respond negatively when AI involvement is salient. This research explores how AI-use disclosure in digital advertising affects engagement with brands. Across eight studies in three environments − an online platform, a behavioral lab, and the field, and a single-paper meta -analysis, we find that AI-use disclosure in AI-generated ads reduces engagement with brand-originated digital ads by making the marketing communication appear less effortful and the featured product appear lower-quality. However, this effect varies when consumers receive additional information − human involvement cues can enhance the negative effect of AI-use disclosure, while automated production cues can diminish it. These findings position AI-use disclosure as a negative extrinsic cue in digital advertising and highlight the role of effort and quality inferences in shaping engagement.