The Power of Transparency: Can Disclosing AI-Generated Advertising Enhance Consumer Perceptions, Attitude, and Dispositions?

The growing diffusion of Artificial Intelligence (AI) in the advertising sector has led to new opportunities and challenges for companies that use social media to promote their products and services. In particular, the use of Generative AI (gen-AI) is increasingly transforming advertising content creation. However, despite the evident potential for creative automation, the effect of declaring AI use on consumer perceptions, attitudes, and behaviors toward ads remains underexplored. This study examines the impact of declaring the use of Artificial Intelligence (AI) in social media advertising on consumer perceptions, attitudes, and behaviors. Two experimental studies with 554 Italian participants reveal that AI declaration significantly enhances advertising credibility and language comprehension. Users are more willing to like and share ads when AI use is disclosed regardless of the product category. These findings suggest that transparency in AI-generated content can improve consumer engagement and brand perception, offering valuable insights for marketers, while highlighting the need for further research exploration of ethical and regulatory concerns.