Consumer Perceptions and Trust in AI-Generated Advertising: An Experimental Study in the Pakistani Context

Abstract

The rapid integration of artificial intelligence (AI) in advertising creation presents both opportunities and challenges for marketers. This study investigates how disclosing an advertisement's origin as AI-generated versus human-created influences consumer trust, brand authenticity, and purchase intent within the Pakistani market. Using a 2 (disclosure: AI-generated vs. human-created)  and 2 (product type: utilitarian vs. hedonic) between-subjects experimental design with 390 consumers from major Pakistani cities, we find that advertisements labelled as "AI-generated" significantly reduce consumer trust, perceived brand authenticity, and purchase intent compared to identical ads labelled "human-created." Product type moderates this relationship, with hedonic products (luxury perfume) experiencing stronger negative effects than utilitarian products (laundry detergent). Demographic factors including age, technological literacy, and prior AI familiarity also moderate the effect. These findings contribute to source credibility theory in the context of AI and offer practical guidance for Pakistani marketers navigating disclosure decisions in an increasingly AI-mediated advertising landscape.

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