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Marketing is currently building its foundations on dependence on Artificial Intelligence (AI),
but it is encountering a problem, especially in areas like social media marketing. There is a lack
of control over the use of AI, particularly with AI-generated content, leading to mistrust among
consumers. To address this, Instagram implemented a new AI info label on Instagram, a tool that
informs users when a post is created using artificial intelligence. This research explores the
impact of AI-generated content disclosure on social media, the goal is to study the effects on
brand perception and transparency. To investigate this impact, we conducted quantitative
research and performed a controlled experiment to evaluate how the disclosure of the label
versus non-disclosure could affect perceptions of the same brand. It has been observed that
brands benefit from greater transparency, but the use of AI can negatively impact brand
perception. The findings will be useful for managers to understand how to adapt to this new tool
and how AI disclosure could influence consumer perceptions of their brands.
