The ask
Does knowing an ad was made by AI change how consumers feel about the brand — and does empathy explain why?
My role
Researcher · Analyst · Presenter
Timeline
2025 · 10 weeks
Skills used in this study — tap to explore
“Consumers don't reject AI. They reject low-quality output. A credible ad survives disclosure. A non-credible ad fails regardless of who made it.”
Key finding · AI in Advertising · 2025
Key findings
Across two pre-registered experiments with different brands, simply labeling an ad as AI-created did not significantly change how consumers felt about the brand. The myth that disclosure automatically hurts brands is not supported by the data.
No significant main effect of AI label across Studies 1 and 2
Higher credibility predicted higher brand perception regardless of whether the ad was human or AI-generated. Credibility is the safety net. Consumers don't reject AI; they reject the low-quality output associated with it.
Significant main effect of ad credibility on brand perception · Studies 1 and 2 combined
A significant interaction showed that when credibility was low, the gap between human and AI ads was largest. As credibility increased, the difference diminished. A credible ad survives AI disclosure. A non-credible ad fails regardless.
Significant interaction: Ad condition × Ad credibility, p < .05
Study 3 qualitative coding revealed two tiers of AI acceptability. Transport, work, advertising, and medicine were rated higher acceptability. Politics, school, and creativity rated lower. 66% of respondents want transparency when brands use AI in advertising.
N=82 · 66% want transparency with AI usage in advertising
AI acceptability by context — mean rank (1 = most acceptable, 7 = least)
Lower rank = more acceptable · N=41
Friedman χ²(6) = 61.06, p < .001 · N=41 · No significant differences within tiers
Study 3 · Qualitative data · N = 82
Open-ended coding on AI sentiment and the transparency preference breakdown.
AI sentiment themes
Top 3 themes from qualitative coding of open-ended responses
Perception is mixed — neither purely negative nor positive
Remaining ~62% of coded sentiments span approval, curiosity, and ambivalence
AI transparency preference
Would you want to know if your favorite brand used AI in their ads? (N=82)
Study 3 · Open survey question · N=82
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