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The advertising industry is being reshaped by artificial intelligence (AI), offering innovation and efficiency in ad creation but also triggering consumer scepticism. This research examines consumer perceptions of AI-generated ads and their impact on consumer brand perceptions, highlighting strategies to mitigate negative reactions. Specifically, the role of responsible leadership, or leadership for the greater good, is explored as a means to counter adverse effects. Through four studies, the findings reveal that signalling AI usage in advertising can heighten negative reactions, but brands perceived as committed to the greater good can mitigate these effects. By demonstrating responsible leadership, brands can reduce negative consumer responses and improve the acceptability and effectiveness of AI-generated ads. This research offers valuable insights into navigating the challenges of AI in advertising while fostering positive consumer engagement.
Sands et al. (Tue,) studied this question.