Use AI to “Promote”, Not “Prevent”: The Interplay of AI Disclosure, Product Involvement, and Regulatory Appeal on Brand Attitudes

Disclosure of AI involvement in advertising is likely to become mandatory due to emerginglegislation and platform policies, creating new challenges for firms. Across three experimentalstudies, this research shows that AI disclosure in advertisements generates more negative brandattitudes. Drawing on the Elaboration Likelihood Model, the findings demonstrate that thisnegative effect is most pronounced among consumers with low product involvement anddiminishes as involvement increases. Moreover, Study 3 reveals a three-way interaction showingthat promotional (rather than preventional) message appeals can attenuate the negative impact ofAI disclosure for low-involvement consumers. Results regarding the mediating role ofadvertisement credibility are mixed across studies, indicating contextual boundary conditions forthis mechanism. Overall, the findings highlight product involvement and regulatory appeal askey moderators shaping consumer responses to AI disclosure in advertising and offer strategicguidance for managing mandatory AI transparency.