AI in Advertising: What Do Consumers Really Think?

Artificial Intelligence continues to transform the advertising industry, opening endless possibilities for creativity, personalization, and targeting efficiency. However, the successful adoption of this cutting-edge technology requires understanding how your audience perceives it. In January 2025, LG Ad Solutions surveyed 506 US consumers, revealing fascinating attitudes toward AI’s role in advertising. Marketers can use these insights to shape smarter, more effective strategies.

Consumer Awareness & Personalized Ads

Generative AI (GenAI) has become mainstream with 71% of US consumers being familiar with the term. Over half of consumers (52%) are confident in their ability to distinguish AI-generated ads from those created through traditional methods. This confidence is highest among younger consumers, age 18-34.

AI is steadily driving the advertising industry toward hyper-personalized experiences, but how do consumers feel about this shift? While 71% of consumers report noticing advertisements they believe are tailored specifically to them, only 29% say they’d like personalized ads more if they were generated by AI. Interestingly, younger audiences are more open to tailored AI-driven advertising with 37% of A18–34 expressing interest in this approach.

What This Means for Advertisers 

The trend toward personalized advertising is here to stay, and AI will continue to accelerate its adoption. By leveraging first-party data, brands can create and target ads that feel more relevant and engaging to viewers. However, this comes with a responsibility to ensure these practices don’t cross the line into discomfort or perceived intrusion. For marketers, it’s critical to strike a balance between leveraging personalization for engagement while respecting evolving consumer boundaries. 

Creation and Regulation 

GenAI is becoming a standard tool for ad creation with over 60% of ad industry executives reporting that their companies already use AI to produce ads. A significant portion of consumers (42%) stated they don’t care whether an ad was created with AI or through traditional means as long as it feels authentic. Another 27% were indifferent, underscoring that effective storytelling and design are what ultimately matter to audiences. 

While consumers are largely unconcerned about companies leveraging AI for creating ads, they remain cautious about its potential for manipulative tactics. Seventy-five percent of consumers agree that AI should be regulated, particularly in sensitive areas such as political advertising.

What This Means for Advertisers 

The integration of GenAI into ad creation presents significant opportunities, but ethics must remain at the core. Brands that uphold ethical practices are more likely to foster lasting consumer trust. In the absence of robust regulations, the responsibility falls on brands to set high standards, ensuring their AI applications respect consumer rights and protect privacy.

Brand Perception 

GenAI is not only transforming the way ads are created but also influencing how brands are perceived. Over one-third of consumers see brands leveraging AI-generated ads as more innovative. This perception is even stronger among younger audiences, with 47% of A18-34 agreeing with this sentiment. As Millennials and Gen Z now represent the majority of the workforce, their familiarity with technology and AI opens up a powerful opportunity for brands to resonate with their values and embrace innovation.

What This Means for Advertisers 

Harnessing GenAI for ad creation not only enhances your brand but also highlights your commitment to staying ahead of emerging trends. It establishes your business as a forward-thinking innovator, particularly when engaging with younger audiences.

Key Takeaways for Marketers 

• Younger Generations Represent the Biggest Opportunity
  While older audiences display more skepticism toward AI, Millennials and Gen Z demonstrate a much more positive outlook. These groups are key decision-makers and consumers, representing a significant market ready to engage with AI-driven advertising creative and targeting.
• Prioritize Ethics with AI
  Authenticity matters, even in the age of AI. Keep your ad campaigns genuine and relatable, whether AI-generated or not. Prioritize ethical use and stay proactive.
• Balance Creativity and Personalization Carefully
  Hyper-personalized marketing is powerful but can backfire if it crosses consumer boundaries. Use AI to improve targeting, but always prioritize privacy and respect preferences.
• Use AI to Shape Perceptions of Innovation
  AI offers more than improved campaign efficiency. It has the power to shape perceptions of your brand as cutting-edge, particularly among younger demographics. 

At LG Ad Solutions, we see AI as a powerful tool to drive efficiency and results. Our focus is on using AI and our robust viewership datasets to create marketing strategies that align with consumer values, foster deeper engagement, and deliver measurable results. Contact us to learn more about how our team is shaping the future of TV advertising.