The Impact of AI-Generated Content on Consumer Trust and Brand Reputation
Brief news summary
The growing use of AI-generated content in product descriptions and advertising, particularly among luxury brands, raises concerns about consumer trust and brand authenticity. Research from the University of Colorado Boulder reveals that consumers often view AI-created ads as less genuine and less effortful, which can harm brand reputation. Examples include Vogue’s AI model campaign for Guess and Levi’s AI-driven inclusivity ads, both criticized for lacking authenticity. Consumers generally prefer human-written descriptions, appreciating the emotional connection that AI content lacks. Coca-Cola’s AI-powered holiday ads also faced skepticism about creativity and brand commitment. According to Washington State University’s Dogan Gursoy, explicitly labeling marketing materials as “Artificial Intelligence” can reduce purchase intent due to emotional distrust and privacy concerns. He advises brands to clearly communicate AI’s benefits and address privacy issues to foster consumer trust. While AI enhances marketing innovation, maintaining authenticity and consumer confidence is essential for brand success.AI-generated content is increasingly appearing in product descriptions and marketing campaigns, a trend explored by Pangram. While some consumers can recognize typical AI writing patterns, this development poses a growing threat to trust in companies and their products. Mia Wang, assistant professor at the University of Colorado Boulder’s Department of Advertising, Public Relations and Design, studies AI’s impact on consumer decisions. Her research indicates that ads known to be AI-generated, especially in the luxury sector, elicit more negative consumer perceptions, which can also tarnish the brand’s reputation. In July 2025, Vogue sparked controversy by featuring an AI-generated model in a Guess magazine spread. Wang emphasized that the issue is less about AI doing the work but more about product category expectations. “Luxury brands could invest in real human talent to show effort, but instead they use AI, ” she said. This skepticism also extends to brands emphasizing social responsibility. For example, Levi’s partnered in 2023 with a company producing AI-generated models to promote inclusivity, yet Wang argues that using AI models, rather than real humans, undermines the brand’s effort and authenticity. Beyond visuals, Wang notes consumers also distrust AI-generated product descriptions. “When presenting a product, people want truthful information and real images, not AI-generated content, ” she explained. In November, Coca-Cola released its second AI-created ad for the holidays. Wang remarked that as a financially strong global brand, Coke could produce traditional ads but chose AI instead.
She highlighted how advertising’s strength lies in personalization and understanding consumer psychology, which AI lacks because it has no emotions or intrinsic motivation to connect with human feelings. Consequently, AI generally cannot generate genuinely insightful or relatable advertising ideas. Conversely, some products market their AI features explicitly. Researchers are examining whether highlighting “artificial intelligence” adds value or deters consumers. Dogan Gursoy, professor at Washington State University’s Carson College of Business, coauthored a 2024 study analyzing how labeling products as “AI-powered” influenced trust and purchase intent. “Companies think mentioning AI will positively influence consumers, but the reality varies across products and services, ” he said. In the study, participants evaluated descriptions of a car and a TV, with one group seeing “AI-powered” and the other “new technology. ” Results showed that mentioning AI reduced purchase intent compared to using “high tech. ” Gursoy’s team found consumers generally lack emotional trust in AI, with particular concern about generative AI in high-risk products like medical diagnosis tools. Data privacy fears also arise when AI is involved, especially since a 2025 study revealed that many generative AI assistants store and share personal data without users’ full awareness. To address these concerns, Gursoy advises companies to clearly explain how AI benefits consumers rather than simply inserting the term “artificial intelligence” into marketing. “They need to frame the message positively, showing how it helps the consumer, ” he said. Additionally, companies should reassure customers about data privacy and security. “People use these tools at home and must trust that their privacy is respected and protected, ” Gursoy concluded.
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The Impact of AI-Generated Content on Consumer Trust and Brand Reputation
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