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As Artificial Intelligence (AI) reshapes the advertising landscape, understanding consumer
perceptions of AI-generated content is crucial. This thesis investigates how different levels of AI
disclosure, ranging from full AI generation, and human-AI collaboration, to no disclosure, impact
consumer trust, engagement, and perceived creativity. The study utilizes a quantitative research
approach, revealing that advertisements disclosed as being created through human-AI
collaboration are perceived as more trustworthy and engaging than those fully generated by AI or
with no disclosure. Notably, advertisements without any AI disclosure are viewed as more
creative, indicating a consumer preference for human-like creativity in advertising.
The study also explores how consumer familiarity with AI, attitude toward technology, and
perceived human likeness of AI moderate these effects. Contrary to expectations, higher
familiarity with AI and positive attitudes toward technology did not significantly enhance trust or
engagement with AI-generated advertisements. In contrast, the perceived human likeness of AI
played a significant role in shaping consumer responses. Advertisements featuring AI perceived
with medium and high human likeness were associated with higher levels of trust and engagement
compared to those with low human likeness, although the effect plateaued between medium and
high human likeness. These findings underscore the nuanced relationship between transparency,
creativity, and consumer perceptions in AI-driven advertising, providing marketers with insights
on how to strategically manage AI disclosure to optimize consumer responses.