Research has found that AI-generated advertising may be undermining the very thing brands rely on most: trust.
A recent report from TBWA and Ideally titled “The synthetic authorship penalty” shows ads created using generative AI trigger significant “trust penalties” among consumers, with disclosure of AI use further worsening perceptions.
The findings come as AI rapidly reshapes the advertising landscape with strong industry pressure to cut costs, but consumers aren’t buying it.
As machine-made content becomes more prevalent on digital platforms, experts warn that consumers are increasingly unable to distinguish between what is real and what is artificial, eroding trust and weakening advertising effectiveness.
Already in 2024, a study by Deloitte titled ‘Deepfake Disruption found that 59 per cent of respondents could not distinguish between AI-generated and human-created content, while 68 per cent feared being deceived by the media.
More recent research by the University of New South Wales and Australian National University also found people are becoming overconfident in their ability to identify AI.
“Recognising the limits of our own judgement will become increasingly important,” ANU Psychologist Dr Amy Dawel told the UNSW Newsroom.
Fang Liu, Associate Professor in marketing at UWA, says this ambiguity and the act of distinguishing the content delays the processing ability of consumers, which in turn has a negative effect for adversiting.
“You only can develop positive attitude to advertising after you actually comprehend the messages.”
“If 60 per cent of consumers cannot be sure if the contents are created by AI or a human being, then that confusion will delay the processing efficiency.”
Dr Liu adds that the confusion for consumers between what is real and what is artificial is making advertising less effective.
It also presents a major ethical challenge.
“It’s a trust issue and a credibility issue,” Dr Liu said.
Industry giant Coca-cola’s, AI generated Christmas advertisement from last year caused major backlash.
Dr Liu also believes disclosing AI usage would improve our collective media literacy and cater to those who cannot distinguish.
“If we commonly disclose among different industries, I think we will improve our understanding of media literacy to protect the society and the common good.”
Transparency and traditional advertising
Perth-based advertising business manager Dom Driscoll agrees, noting that disclosing AI advertisements promotes transparency between the consumer and the product.
“If AI is used, especially on social media advertising, that it should be disclosed just as a transparency thing.”
While AI advertising is growing fast, Driscoll says it does not pose a threat to traditional advertising.
“It’s efficient, it’s quick which for some advertisers, might be exactly what they’re looking for.
“But I do think for people who still want to speak to emotion and try bring people on board, the traditional way of advertising will still be around.”
Driscoll believes the creative aspect of advertising should remain “humanised” rather than relying on AI.
“Speaking to someone’s emotions is how you get sales across the line which is the main reason why many people advertise”.
Clare Perrott
Clare Perrott is a Journalism and Broadcasting student at ECU with a strong passion for arts, culture and education.
