Disclosing AI-generated advertising: effects on attitudes, purchase intent, and social media engagement

Synthetic advertising is a new phenomenon that uses Artificial Intelligence (AI) to generate altered advertisements for brands’ use on social media platforms. We examine synthetic out-of-home advertising finding that synthetic advertisements perceived as highly creative enhance their persuasiveness but also increase the likelihood of consumers noticing they are not real. Consumers who realize an advertisement is synthetic experience diminished positive attitudes toward the advertisement and the brand, but it does not impact purchase intent or social media engagement. Lastly, creativity moderates the relationship between awareness of an advertisement’s falsity and attitudes towards the advertisement and the brand. Theoretical, managerial, and ethical implications are discussed.