An AI “perception gap” is separating consumers from brands. Can a bridge be built?

In the span of a few short years, generative AI has gone from a futuristic afterthought to an ubiquitous innovation. AI is certainly everywhere, but that doesn’t mean everyone is happy with the technology’s rapid proliferation. A study conducted by the IAB in conjunction with Sonata Insights showed a clear “perception gap” that separates consumers’ AI-related reservations from brands’ bullish opinions.

The study was informed by a wide survey that included more than 500 respondents across the Gen Z and Millennial cohorts as well as 100 advertising industry executives. The only clear result seems to be that none of those parties feel the same about the AI boom. 39% of Gen Z consumers expressed negative feelings about AI, compared to 20% of Millennials. Both of those cohorts are bigger AI skeptics than the ad execs. Only 10% of that group described brands using AI as “manipulative,” whereas 20% of consumers agreed with that sentiment.

Misaligned expectations are another cause of the widening perception gap. 82% of ad executives believe Gen Z/Millennial consumers feel very or somewhat positive about AI-generated ads, but only 45% of consumers actually said they feel that way. In just two years, the gap between those two percentages has widened by five points.

“There is a growing gap between advertisers’ use of AI and consumer skepticism,” said IAB SVP of Research and Insights Jack Koch. “This research shows that disclosure can play a decisive role in strengthening consumer relationships and determining whether AI use in advertising becomes a long-term value driver or a short-term liability. It also emphasizes that transparency and creative quality are essential to earning trust, shifting perceptions, and driving performance.”

Can consumers and brands work together to close the gap? On both sides of the chasm, there is room for opinions to move. Even the most skeptical consumers are willing to concede that AI has the potential to be a helpful innovation in certain industries, especially as the technology continues to evolve.

Until that future arrives, however, brands can do more to acknowledge widespread misgivings related to AI. Consumers aren’t just wary of what the technology might do to our society in the future; they’re freaked out about how quickly AI has risen and anxious about how hard it can be to distinguish AI-generated content from human creations.

For that reason, proper disclosures are a must. 73% of the consumers who responded to the IAB survey said that clear disclosures would either increase or have no impact on their likelihood to purchase corresponding products or services.

The IAB wants to play its part to build that sense of trust. Alongside its study, it has released an AI Transparency and Disclosure Framework that teaches brands how and when to talk about the use of generative AI in their ads. Those admissions aren’t guaranteed to assuage common fears about AI, but they’re certainly a step in the right direction.