Abstract:
Generative artificial intelligence (AI) technologies have rapidly evolved to create advertising content for social media platforms at a
scale that was once impossible without human production in personalized, low-cost ways. This study provides a conceptual and
literature-based analysis of the impact of artificial intelligence-generated content (AIGC) advertising on customer engagement and
brand building on social platforms. Reviewing 20 peer-reviewed published papers from MDPI, Taylor & Francis, and Springer outlets,
the review draws together evidence on the characteristics of AIGC advertisements, consumer response to AIGC advertisements, and
downstream effects on brand trust, brand loyalty, and brand advocacy. Given the conditions where personalization is high and the
source of AI-generated content is not salient, the analysis suggests that AI-generated ads can be as attention-grabbing and engaging
as human-created content and potentially even more so. However, a disclosure of AI involvement can diminish consumer trust,
empathy, and purchase intent, which is driven by the activation of persuasion knowledge and algorithm aversion. The proposed
framework, comparative tables, and five conceptual diagrams presented below illustrate the importance of disclosure transparency
and personalization in increasing or decreasing the value of AIGC advertising as a mechanism to create lasting brand equity or just
passing moments of engagement. The paper ends with a research agenda for researchers and practitioners working in this rapidly
changing field, as well as limitations of the current evidence base.
