Generation Z Consumers’ Perceptions of Artificial Intelligence in Social Media Advertising : A Trust Based Analysis of Brand Trust and Purchase Intentions

Sammanfattning

The growing integration of artificial intelligence (AI) into digital marketing has transformed how brands design, personalize, and communicate advertising messages, particularly within social media environments. However, existing research highlights contradictory findings regarding consumer perspectives of AI in advertisements, identifying privacy issues, manipulation, and authenticity concerns as some threats that consumers may face. In this regard, the following thesis aims to explore how Generation Z perceives the involvement of AI in social media marketing advertisements. The paper draws on the privacy-benefit trade-off theory and trust-based consumer decision-making theory to develop a theoretical framework linking perceptions of AI, brand trust, and behavioral outcomes, taking into consideration that both skepticism and technological innovativeness can be seen as moderating factors. A quantitative research design methodology was chosen for the study, using a cross-sectional online survey, in which 274 valid data samples were collected from Generation Z respondents in different countries, including Türkiye, Italy, and others in Europe. The data analysis is done through OLS regression along with Baron and Kenny’s (1986) four-step method to examine hypotheses. The findings provide empirical insights into the role of trust in AI-driven advertising and contribute to a better understanding of how digital-native consumers respond to AI-supported marketing communication, offering both theoretical and practical implications.