Artificial Intelligence in Social Media Advertising: To Say or Not To Say?

The increasing integration of Artificial Intelligence (AI) in the advertising industry is opening up both promising opportunities and new challenges for brands leveraging social media to promote their offerings. The rise of Generative AI (gen-AI) is reshaping how advertising content is developed. Yet, while the benefits of creative automation are evident, little is known about how disclosing AI involvement influences consumer perceptions and attitudes toward advertisements. This research investigates the effects of openly stating the use of AI in social media advertising on how consumers perceive and respond to content. Results of two experimental studies show that transparency regarding AI use significantly boosts perceived advertising credibility and enhances comprehension of the advertising message. These findings indicate that consumers value transparency in AI-generated content. The study offers practical implications for marketing professionals and underlines the importance of further research into the ethical and regulatory dimensions of AI use in advertising.