Disclosing Artificial Intelligence in Social Media Advertising Increases Advertising Credibility and Message Comprehension

Generative Artificial Intelligence (gen-AI) is being widely adopted to craft copy and visuals for social media advertising. We distill the essential insight from two experiments with Italian consumers: transparently declaring that an ad was created with AI—versus not declaring it—reliably improves (i) perceived advertising credibility and (ii) perceived comprehension of the ad’s language. Across two product categories (wine and body wash) and holding content constant, AI disclosure increased credibility by roughly half a scale point on 7-point measures and similarly improved language comprehension. Effects did not depend on product category. Conceptually, the finding extends Persuasion Knowledge and Source Credibility perspectives to AI-authored messages: explicit disclosure signals honesty and perceived competence, reducing resistance and facilitating message processing. Practically, the takeaway is straightforward: adopting clear AI-disclosure cues (e.g., labels or Content Credentials) can enhance the trustworthiness and clarity of social media advertising without changing the creative itself. We outline actionable guidelines for managers and note boundary conditions and research opportunities (e.g., roles of brand reputation, AI familiarity, and platform context).