EFFECTIVENESS OF AI-POWERED ADVERTISING ON GENERATION Z’S TRUST, ATTITUDE, AND PURCHASING BEHAVIOR

Abstract

As artificial intelligence (AI) becomes an increasingly integrated innovation in the digital world, its impact on the consumer perception and behavior has drawn interest, academically and in industry. This thesis investigates the effectiveness of AI-powered advertising on Generation Z’s trust, attitudes, and purchasing intentions. This study will use the Technology Acceptance Model (TAM) with a few additions, such as: AI literacy, perceived AI accuracy, and perceived AI reliability. These variables are put in place to examine their level of influence on functional and emotional perception in AI on Generation Z. By exploring how AI-powered advertising affects the consumer-brand relationship within this demographic, this study will contribute to the academic understanding of technology acceptance and guide marketers in leveraging this new technology without hurting their relationship with these new and upcoming consumers.