AI Disclosure in Applied Marketing Practice: Effects of an AI Label on Advertising Credibility, Brand Authenticity, and Purchase Intention for a Sensory Experience Product

Abstract

Regulatory initiatives such as the EU AI Act oblige advertisers to disclose AI-generated content, raising a transparency dilemma for applied marketing practice: an ethically required disclosure may erode consumer trust. This study examines whether an explicit AI label ("Created by AI") on an advertising image for a fictional organic natural cosmetics brand reduces advertising credibility, brand authenticity, and purchase intention, and whether individual AI literacy moderates these effects. A randomized single-factor between-subjects online experiment was conducted and analyzed in two scenarios: an intention-to-treat sample (N = 179) representing realistic exposure conditions, and a per-protocol sample (N = 125) isolating conscious label perception. No significant label effects emerged in either scenario, and brand authenticity did not mediate an effect on purchase intention. Given the limited sample size, moderate negative effects cannot be excluded, particularly for brand authenticity. More than half of the exposed participants overlooked the label entirely, indicating pronounced banner blindness in applied advertising contexts.