Artificial intelligence is rapidly becoming the engine behind modern advertising. From automated video creation to AI-generated copy and imagery, brands are embracing generative tools at an unprecedented pace.
But while marketers accelerate adoption, consumers are slowing down.
New research from the Interactive Advertising Bureau (IAB), conducted in partnership with Sonata Insights, reveals a widening perception gap between advertisers and the audiences they hope to influence.
The study—based on surveys of more than 500 Gen Z and Millennial consumers and 100 advertising executives—suggests that while AI adoption is soaring, consumer trust is not keeping pace.
Instead, the data points to something marketers often underestimate in the race toward automation: transparency.
And for Revenue Operations teams and go-to-market leaders, this insight carries strategic implications far beyond creative production.
AI Advertising Is Accelerating—Fast
AI has moved from experimental to operational in advertising. According to the latest research:
- 83% of advertising executives say their company now uses AI in the ad creation process, up from 60% in 2024.
- 86% of media buyers are using or planning to use generative AI to build video ad creative, according to the Digital Video Ad Spend & Strategy Report.
- AI is most commonly used in social media advertising (85%) and display advertising (73%), with growing adoption in TV (56%) and audio ads (42%).
But adoption alone does not equal effectiveness.
And that’s where the real story begins.
The Trust Gap Between Advertisers and Consumers Is Growing
One of the most striking findings from the research is the widening disconnect between how advertisers think consumers feel about AI ads and how consumers actually feel.
According to the study:
- 82% of ad executives believe Gen Z and Millennials feel positive about AI-generated ads.
- In reality, only 45% of consumers say they feel positive.
That’s a 37-point perception gap, larger than the 32-point gap recorded in 2024.
“Compared with 2024, more companies are using AI to develop ads in 2026 and more consumers believe they have seen AI-generated ads. But a notable perception gap exists between consumers and advertisers,” Debra Aho Williamson, Founder and Chief Analyst at Sonata Insights, Jack Koch, SVP of Research and Insights at IAB, and Caroline Giegerich, VP of AI at IAB, explained.
Even more concerning for brands, consumer sentiment is becoming more negative over time.
- The share of consumers who feel negative toward AI ads has increased by 12 percentage points since 2024.
- Meanwhile, the number of neutral consumers has dropped from 34% to 25%, suggesting opinions are solidifying.
For marketers hoping AI will quietly streamline operations behind the scenes, consumers are increasingly aware that something has changed.
But not everyone likes it.
Gen Z Is the Most Skeptical Audience
If there’s one audience marketers cannot afford to misunderstand, it’s Gen Z.
Ironically, the generation most comfortable using AI tools in their personal lives is also the most skeptical about brands using AI in marketing.
According to the IAB and Sonata Insights:
- 39% of Gen Z consumers report negative sentiment toward AI-generated ads.
- Only 20% of Millennials feel the same way.
Gen Z also describes brands using AI in noticeably harsher terms:
| Attribute | GenZ | Millennials |
| Inauthentic | 30% | 13% |
| Disconnect | 26% | 8% |
| Unethical | 24% | 8% |
At the same time, advertisers believe the opposite.
For example:
- 46% of ad executives say AI ads make brands appear “forward-thinking.”
- Only 22% of consumers agree.
What we learn from this research is that consumers are less likely to associate positive attributes with AI-generated advertising and more likely to select negative ones.
And, that’s a data problem.
A RevOps Perspective: AI Creativity Without Customer Intelligence
For Revenue Operations leaders, the key is understanding customer intelligence alignment.
Marketing teams are adopting AI faster than many organizations can measure its downstream impact on:
- pipeline quality
- customer trust
- brand perception
- conversion behavior
But without unified data across the go-to-market motion, companies risk optimizing content production efficiency instead of revenue outcomes.
This is where platforms like Fullcast play a critical role.
RevOps teams need visibility into how AI-generated campaigns actually influence:
- buying signals
- account engagement
- territory performance
- conversion velocity
AI-generated creative may increase campaign volume. But only integrated GTM intelligence reveals whether those campaigns build trust or erode it.
Disclosure: The Unexpected Growth Lever
If there’s a silver lining in the research, it’s this:
Consumers are far more receptive to AI ads when brands are transparent about them.
According to the recent survey:
- 73% of Gen Z and Millennial consumers say disclosure either increases or does not affect their likelihood to purchase.
In other words, transparency carries little downside—and meaningful upside.
Disclosure also drives engagement.
Clear AI disclosure ranked as the third-highest driver of attention for AI-generated ads, behind:
- High-quality visuals
- Humor
This suggests something counterintuitive: Consumers aren’t necessarily rejecting AI. They’re rejecting hidden AI.
Consumers Want Transparency, Especially in Sensitive Industries
Another key finding: consumers want more disclosure than advertisers currently provide.
More than half of consumers say brands should disclose when ads include:
- fully AI-generated content
- AI video
- AI images
Nearly half also want disclosure for:
- AI voices
- AI avatars or virtual characters
Consumers are particularly concerned about AI transparency in industries where trust already matters most:
- Healthcare / pharmaceuticals
- Politics
- Financial services
Interestingly, these are also the sectors most heavily regulated.
Which suggests something important:
AI transparency may soon shift from a best practice to a compliance requirement.
The Strategic Opportunity for Marketers
Despite growing skepticism, the research highlights a significant opportunity for brands willing to lead with transparency.
The IAB study outlines three key principles for improving consumer experiences with AI advertising:
1. Understand Audience Attitudes Toward AI
Gen Z may be tech-savvy, but they are deeply sensitive to authenticity.
Campaigns targeting younger audiences should be explicit about why AI is used, not just how.
2. Use AI to Enhance Creativity—Not Just Cut Costs
One troubling trend in the research is the rising importance of cost efficiency.
64% of advertisers now cite cost savings as AI’s top benefit. While operational efficiency matters, the risk is obvious.
Consumers are already criticizing low-quality AI content as “AI slop.” If AI becomes synonymous with cheap creative, brand trust will decline.
3. Standardize Disclosure Practices
Although 89% of advertisers say they sometimes disclose AI usage, fewer than half do so consistently.
As the IAB’s AI Transparency and Disclosure Framework suggests, standardized disclosure may soon become essential to maintaining credibility.
The Bigger Picture: AI Trust Is the Next GTM Battleground
The lesson for go-to-market leaders is clear.
AI is not just transforming how marketing operates.
It’s transforming how consumers judge brands.
The next competitive advantage will not come from who generates the most AI content.
It will come from who builds the most trusted AI-powered customer experiences.
And that requires more than creative tools.
It requires:
- unified GTM data
- real-time customer intelligence
- RevOps alignment across marketing, sales, and customer success
Platforms like Fullcast are increasingly essential because they give organizations the ability to connect AI-driven marketing activity directly to revenue outcomes.
Without that visibility, companies risk optimizing for automation speed rather than customer trust.
The Bottom Line
The truth is, AI advertising is not slowing down. But consumer skepticism is growing just as fast. The brands that succeed in the next decade won’t simply be the ones using AI.
They’ll be the ones who use it responsibly, transparently, and intelligently across the entire go-to-market engine.
In a world flooded with synthetic content, trust may become the most valuable marketing asset of all.
