By Leila Ugincius

Image-generative artificial intelligence makes ad creation faster and cheaper — but there’s an intriguing hook to the look, according to new research from Virginia Commonwealth University. Trust can plummet when AI-generated visuals depict service providers in industries where relationships matter.

So, how can AI help service marketers without compromising trust?

A study coauthored by César Zamudio, Ph.D., associate professor of marketing in the VCU School of Business, determined that selective AI use in ad creation is key.

“When tangible elements — like a doctor’s office environment — are AI-generated, but the service provider’s image is a real picture, trust and ad effectiveness are restored,” Zamudio said. “The takeaway? Use AI where it counts, and let the human element shine.”

This balance is crucial for small businesses as they market themselves. The smart move is to use AI to generate backgrounds, office settings or equipment — but keep real people in their ads. This way, businesses can still benefit from AI’s speed and cost savings without losing consumer confidence.

“Our research offers a simple, actionable strategy: Use AI for settings, not people,” Zamudio said. “This approach can help you cut ad costs without cutting credibility, giving you a real edge to beat bigger brands.”

The research is also relevant to consumers, who can use it to help navigate AI-driven marketing.

“Not all AI ads are misleading,” Zamudio said, “but knowing what’s real — and what’s not — can shape your trust in a brand. … Our study reveals how AI in advertising shapes trust, helping you stay informed, skeptical and aware in today’s digital marketing landscape.”

Smart AI use is key, he said. “Brands can harness AI’s efficiency without losing credibility by keeping real people front and center in service ads. Marketers can use this research to successfully walk the tightrope between innovation and consumer confidence.”

This is especially important for services, where ads help make intangible offerings feel real and trustworthy. With AI disclosures becoming more common due to government and industry pressures, businesses need to know how to design AI-driven ads that maintain consumer trust.

Zamudio’s study, “Service Ads in the Era of Generative AI: Disclosures, Trust and Intangibility,” was co-authored with colleagues from Missouri State University and Longwood University and was published recently in the Journal of Retailing and Consumer Services.