AI-disclosure and brand modernity: the role of “AI=novelty” lay belief

Purpose With artificial intelligence (AI) increasingly used in packaging design, many companies are choosing to disclose its adoption. This study aims to investigate how disclosing the packaging as AI-generated (vs. human-generated) influences consumer perceptions of brand modernity, offering insights for effective communication strategies. It also explores the underlying mechanism of “AI = novelty” lay belief and the moderating role of the prospect of an explanation. Design/methodology/approach Six empirical studies were conducted. Study 1A and 1B ( n = 304) tested the effect of packaging design disclosure on perceived brand modernity. Study 2 ( n = 324) used a moderation approach to examine the underlying mechanism of “AI = novelty.” Study 3 ( n = 360) investigated the moderating role of the prospect of an explanation. Study 4A ( n = 196) examined the downstream effect on brand evaluation. Study 4B ( n = 24,005) adopted a Facebook advertisement to test the downstream effect in a real-world setting. Findings Results showed that brands are perceived as more modern when disclosing their packaging as AI-generated vs. human-generated. This effect is driven by the lay theory that AI = novelty. However, when companies provide an opportunity for consumers to know the design process, the positive effect of AI disclosure on brand modernity will be attenuated. Originality/value This research expands the AI disclosure literature by introducing a novel perspective that AI disclosure can positively influence consumers’ perceptions of brand modernity. It also identifies the underlying mechanism driving this effect: “AI = novelty” lay belief.