Artificial intelligence (AI) is shaking things up in all sorts of industries, and advertising is no exception.
But it turns out, creating effective AI-driven ads might be trickier than we thought. New research from NielsenIQ (NIQ) is giving us some surprising insights into how consumers really feel about AI-generated content.
What the research tells us
NIQ’s latest study, which they’re presenting at CES 2025, dives deep into how people react to AI ads. And the picture it paints is… complicated. They talked to over 2,000 people and even used neuroscience to get a better understanding of their reactions. Here’s the gist:
- Bad vibes for brands: people often found AI generated ads less engaging, even calling them “annoying,” “boring,” and “confusing“.
- Memory fail: even polished AI ads didn’t stick in people’s minds as well as traditional ads. This suggests that AI content isn’t quite connecting with our existing memories and experiences.
- Visual overload: poorly made AI visuals were just plain hard to process. Instead of being inspired, people just felt frustrated.
Wait, what about that other study?
These findings seem to clash with earlier research, like a 2024 MIT study that compared human-created and AI-generated content. That study actually found that people preferred content with an AI touch, even when they knew it was AI generated. So, what’s going on?

Here are a few things to consider:
- Different content, different results: the MIT study focused on short, persuasive writing, like product descriptions. NIQ’s research, on the other hand, looked at visual and video ads. AI might be great at crafting snappy text, but video ads are a whole different ballgame, involving visuals, pacing and emotions – things that AI is still struggling to master.
- Quality is king (or queen!): AI is only as good as its execution. Well-written AI content can blend seamlessly into marketing, but clunky video ads with awkward visuals and zero emotional depth are a turn-off. NIQ’s study really emphasises the importance of high-quality production when using AI for video.
- Expectations matter: what we expect from different types of media can really influence our reactions. We might find AI generated text innovative, but in visual media, the “uncanny valley” effect can make things feel creepy and inauthentic.
What does this mean for marketers?

This doesn’t mean we should ditch AI altogether. It just means we need to be smart about how we use it. Here are some tips:
- Use AI for brainstorming: AI can be a great tool for generating ideas, storyboarding, and refining concepts. But maybe don’t let it create the whole video by itself.
- Team up AI and humans: the best approach is often a collaboration between AI and human creatives. Let humans add that essential touch of creativity and emotion.
- Test, test, test: use tools (like NIQ’s Ad Explorer) to test your AI content and make sure it actually resonates with your target audience.
The Big Picture
As AI keeps improving, some of these hiccups will likely disappear. But for now, it’s all about using AI wisely. We need to stay tuned into how people are responding, prioritise quality, and steer clear of AI campaigns that could backfire and hurt our brand’s reputation. MIT highlights AI’s potential in writing, while NIQ notes challenges in visual storytelling. By balancing both, we can use AI to boost creativity while keeping the human touch. In today’s fast-changing world, understanding consumer perceptions is crucial. The future of AI in advertising isn’t just about what’s possible, it’s about what connects.