CONSUMER TRUST IN AI-GENERATED MARKETING CONTENT: THE EFFECTS OF AI DISCLOSURE, BRAND AUTHENTICITY, AND PRIVACY CONCERNS ON CONSUMER DECISION-MAKING

Abstract

This inclusive and evidence-based study scrutinizes the convoluted factors in the realm of digital marketing such as the credibility of the client coupled with the authority to take the decisions in order to encounter marketing material generated by Artificial Intelligence. With the enhanced usage of Artificial Intelligence in the global market, it is vital to understand how digital transparency determines the customers’ conduct in the brand's prolonged success. This study follows a quantitative research methodology with an effective and valid 2×2 factorization design. A digital population, with the prominent sample size of 412, carrying the awareness of the advanced world of technology and particularly aware of the usage of Artificial Intelligence in the global world of marketing, is carefully and deliberately selected. This research acts as a buffer for the issues of digital privacy coupled with the customers' cognitive abilities to make decisions and to ensure the authenticity of the brand as well. Privacy apprehensions which are sparked by the disclosure of technology can be shrinked with establishing brand’s reliability and authenticity. The findings unveil the enhanced Artificial Intelligence exposure to the customers leaving a negative impact on their minds regarding the authenticity of the online brands, thus leading to the reduced purchase intent. These negative perceptions about digital brands can be reduced by the increase in the authenticity of digital organization. It is revealed by moderate mediation that by improving brands authenticity, customers' inherent perception can be reshaped in the favor of the brand by disregarding the transparency in algorithm.