Since ChatGPT’s public debut just a few years ago, generative AI has quickly gained traction as a transformative force both within advertising and beyond.
Brands and agencies have embraced the technology with enthusiasm, using it to drive efficiency, reduce redundant and manual tasks, and unlock creativity. In fact, more than 90% of industry professionals say they use gen AI in their work monthly and more than 70% say they use it every week. But while the industry buzzes with excitement, consumer sentiment is more mixed—particularly when it comes to AI-generated ads.
In this context, marketing teams must prioritize privacy and ethics, offer transparency, and lead with human creativity to balance capitalizing on the technology with building trust with consumers.
There’s a notable disconnect between advertiser perceptions and consumer perceptions of AI. While 77% of advertisers have a positive view of the technology, only 38% of consumers share that perspective. Consumer skepticism is even greater when it comes to using gen AI to create ads, with 65% of US adults saying they’re either somewhat or very uncomfortable with the practice.
For those skeptical or hesitant about AI, ethical use and data privacy are top concerns, according to research from GWI x Basis. A notable 81% of consumers familiar with AI feel that companies will use the technology to collect and analyze their personal data in ways they aren’t comfortable with.
For example, when brands upload customer data to AI-powered tools to optimize targeting or create lookalike audiences, how can consumers be sure their data is protected? Without clear regulation of the technology or transparency into AI tools, these concerns continue to grow. To address them, brands and agencies should vet partners that use AI and data in ways that could raise privacy concerns to ensure they prioritize ethics and data privacy. Businesses can also consider gaining voluntary certifications like SOC 2 to demonstrate responsible data practices.
Being upfront and transparent about AI use in advertising is critical to building trust. In fact, one study found that AI-generated ads that included clear disclosures resulted in a 73% lift in ad trustworthiness and a 96% lift in trust for the company. By clearly communicating how AI is used, advertisers can avoid misleading consumers and instead foster confidence.
Consumers can often tell when an ad is AI-generated. They also tend to find those ads less engaging and more “boring,” “annoying,” and “confusing” than other ads. What's more, AI-generated ads trigger weaker memory activation in the brain compared to traditional ads.
Visual authenticity matters too: 52% of consumers say they’re uncomfortable with brands using AI to edit product images and nearly half report they’re uneasy with fully AI-generated product visuals.
To ensure their marketing content resonates with consumers, advertisers should apply the same creative vigor and quality standards to AI-assisted work as they do to fully human-created ads. Rather than treating generative AI as a plug-and-play substitute for human creativity, it should be used to support the creative process—assisting with the brainstorming process and handling repetitive tasks so people can focus on strategy, storytelling, and big ideas. At the same time, anything that is AI-generated should always be reviewed by humans to ensure authenticity, brand safety, and alignment with brand standards.
AI presents a huge opportunity for innovation in advertising, but also comes with risks. Though many brands and agencies have been quick to embrace the technology, consumers remain wary—especially of AI-generated ads. To close the gap between industry enthusiasm and consumer skepticism, advertisers must use the technology with care. By prioritizing ethics and privacy, leaning into transparency, and leading with human creativity, teams can both leverage AI and build trust with consumers.
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Want to learn more about how AI is transforming advertising? We surveyed marketing and advertising professionals from leading agencies, brands, and publishers to understand how they’re using AI today—and how they expect it to influence the industry going forward. Explore all the findings in our report, AI and the Future of Marketing.
