Ads from automatons: Consumer perceptions of AI modality disclosures and the roles of AI experience and dispositional persuasion knowledge on advertising outcomes

Abstract

ABSTRACT Extant literature on consumer reactions to AI-generated advertising have focused on resulting perceptions of creativity, objectivity, and effectiveness in specific situations, often invoking situational persuasion knowledge as a framework to guide explanations of reactions. Though informative, this leaves a research gap with regard to other forms of persuasion knowledge, ad contexts, and advertising-relevant outcomes. Through an experimental approach and in response to platform-specific guidelines and proposed laws mandating disclosures of AI-generated content in advertising, the current study seeks to understand the interaction of dispositional persuasion knowledge, experience with AI tools, and trust in AI to better explain consumer reactions to online banner ad elements labeled as generated by AI. We find a general consumer ambivalence toward advertising disclosed as AI-generated vs. a non-AI-generated control (regardless of AI-generated modality), but also novel positive effects of dispositional persuasion knowledge, AI experience, and trust in AI with regard to specific advertising-focused dependent variables when the use of AI-generated text in ads is disclosed. Theoretical and practical takeaways for marketers are discussed.