Examining the effect of AI advertising involvement disclosure on advertising value and purchase intentions

Purpose The integration of artificial intelligence (AI) into advertising has revolutionized how brands create and deliver marketing messages. The involvement of AI in ad creation introduces a critical question: if the AI origin of an advertisement is disclosed, how this transparency affects advertising value and purchase intentions. Grounded on the Persuasion Knowledge Model, this study investigates the effect of AI disclosure on these two key outcomes. Design/methodology/approach ChatGPT and Stable Diffusion were employed to generate stimuli. 358 consumers recruited via Prolific were exposed to the stimuli. The data were analyzed using a combination of Hayes’ Process models, MANCOVA and ANCOVA. Findings The results reveal that AI disclosure diminishes advertising value and purchase intentions. The relationships are negatively mediated by advertising credibility and positively moderated by consumer attitudes towards AI. Originality/value Theoretically, the research contributes to a more comprehensive picture of AI-generated advertising evaluation. Practically, the research offers actionable insights for businesses seeking to balance the advantages of AI with human psychology, ultimately optimizing advertising effectiveness in an increasingly AI-driven marketplace.