AI-Generated Advertising Content and Consumer Persuasion: The Moderating Role of Disclosure, Perceived Authenticity, and Product Involvement

Abstract: Using a 2 (content origin) × 2 (disclosure) × 2 (product involvement) between-subjects factorial experiment with 384 urban Indian consumers, this study tests how algorithmic attribution, disclosure, and involvement jointly shape advertising persuasion. Algorithmically-attributed content reduced perceived authenticity and purchase intention relative to human-attributed content; disclosure amplified skepticism, particularly under high involvement. The three-way interaction on purchase intention was significant, with the lowest intention in the disclosed, algorithmic, high-involvement condition. Perceived authenticity partially mediated the content-origin effect, accounting for 55% of the total effect, and product involvement significantly moderated this mediation at the second stage. Keywords: AI-Generated Advertising, Disclosure, Perceived Authenticity, Product Involvement, Purchase Intention JEL Classification Number: M31, M37, O33