Consumer Responses to AI- vs. Human-Created Misrepresentative Ads: Forgiving the Algorithm?

As brands increasingly use generative AI for advertising, ethical challenges arise when such ads misrepresent marginalized communities. Across three studies, we demonstrate that consumers are less forgiving of AI-created misrepresentative ads than human-created ones because AI ads are perceived as involving less effort, reducing ad attitudes and forgiveness. Extending attribution theory, we show perceived effort becomes the primary responsibility cue when the proximate creator lacks moral agency yet institutional accountability persists. This mechanism operates even when consumers' personal identities are implicated (LGBTQIA+ participants evaluating Pride ads). However, strong brand reputation buffers these effects, informing responsible AI integration in advertising.