Are You Willing to Pay for Generative Artificial Intelligence (GenAI) Products? Disentangling the Disclosure Effects and the Mediating Role of Psychological Value

While digital platform vendors are rapidly offering new generative artificial intelligence products (GAIPs), prior research on algorithmic aversion suggests that users may not respond to them the same way as to the human-generated products (HGPs). We propose that GAIPs induce psychological value, defined as a user’s intrinsic desire for a product that can influence their willingness to pay and may depend on the product type. Disclosing a product as a GAIP or HGP could further influence user reactions. From our randomized experiments with three different products representing functional, hybrid, and creative product types, we find psychological value plays an important role in creative products, such as wall art. Human disclosure shows no effect on functional or highly creative products. Our study theoretically extends the algorithmic aversion literature by illustrating the role of psychological value in GAIP highlighting the nuanced role of product type and disclosure in influencing user reactions and offering practical implications.