AI Ads: The Perception Gap Between Marketers and Consumers

 Most marketers believe younger consumers have a positive perception of AI-generated ads—but most younger consumers don't actually feel that way, according to recent research from IAB.

The report was based on data from a survey conducted between October 2025 and January 2026 among 505 US Gen Z (age 16-27) and millennial (age 28-43) consumers, as well as 104 US ad industry executives who work for companies with annual media spend of at least $1 million.

Some 82% of ad executives believe Gen Z and millennial consumers feel very or somewhat positive about AI-generated ads.

However, only 45% of Gen Z and millennial consumers surveyed say they feel very or somewhat positive about AI-generated ads. This gap widened from 32 points in a similar survey conducted in 2024 to 37 points in 2026.

Some 39% of Gen Z consumers surveyed say they have negative sentiment toward AI ads, compared with 20% of millennials.

Some 46% of ad executives say brands that use AI-generated ads are "forward thinking," compared with only 22% of Gen Z and millennial consumers.

About the research: The report was based on data from a survey conducted between October 2025 and January 2026 among 505 US Gen Z (age 16-27) and millennial (age 28-43) consumers, as well as 104 US ad industry executives who work for companies with annual media spend of at least $1 million.

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