The Effect of Transparency in the Use of Artificial Intelligence in Marketing on Customer Trust: The Mediating Roles of Brand Authenticity and Perceived Risk

Abstract

This study aimed to examine the effect of transparency in the use of artificial intelligence in marketing on customer trust, considering the mediating roles of brand authenticity and perceived risk among customers in Tehran. This applied study employed a descriptive-correlational design using structural equation modeling. The statistical population consisted of customers residing in Tehran who had encountered at least one form of AI-enabled marketing during the previous six months. Initially, 420 participants were recruited through convenience sampling, and after excluding invalid responses, data from 384 participants were analyzed. Data were collected using a multidimensional questionnaire assessing AI-use transparency, brand authenticity, perceived risk, and customer trust. Construct validity was examined through confirmatory factor analysis, while internal consistency was assessed using Cronbach’s alpha and composite reliability. Pearson correlation, confirmatory factor analysis, structural equation modeling, and bootstrapping with 5000 resamples were used for data analysis. Structural model results showed that AI-use transparency had a significant positive effect on brand authenticity (β = 0.58, p < 0.001) and a significant negative effect on perceived risk (β = -0.46, p < 0.001). Transparency also had a significant direct positive effect on customer trust (β = 0.24, p < 0.001). Brand authenticity positively predicted customer trust (β = 0.43, p < 0.001), whereas perceived risk negatively predicted trust (β = -0.27, p < 0.001). The indirect effect of transparency on trust through brand authenticity was 0.25, while the indirect effect through perceived risk was 0.12; both effects were statistically significant. The model explained 59 percent of the variance in customer trust. Transparency in AI-enabled marketing can enhance customer trust both directly and indirectly by strengthening brand authenticity and reducing perceived risk; therefore, clear and responsible disclosure of AI use should be treated as a strategic component of brand trust management.