By Vicky Sidler | Published 22 September 2025 at 12:00 GMT+2

If you think your customers can tell whether your ad was made by a human or a robot, you might be giving them too much credit.

Almost no one can spot an AI ad. Literally.

A new study from Magic Hour found that 98.6% of Americans couldn’t correctly identify which ads were AI-generated. And that’s despite 85% saying they were confident they could.

So if you’ve been quietly using AI tools to whip up your content—odds are, your audience doesn’t even realise it. And for the most part, they’re not bothered.

But. Before you start replacing faces with avatars, remember what happened to Guess in Vogue. Their AI-generated model ad blew up—for all the wrong reasons. People saw it as tone-deaf, fake, and out of touch with the brand's values. 

And that’s the real lesson here.

TL;DR:

• 99% of people can’t identify AI ads

• 60% say it wouldn’t reduce trust in a brand

• But some groups (like women 45+) are less forgiving

• Transparency builds trust. Hiding AI use doesn’t

• AI is fine—as long as your message stays clear and on-brand

👉 Need help getting your message right? Download the 5-Minute Marketing Fix

Table of Contents:

Most People Are Guessing—Literally:

In Magic Hour’s test, respondents were shown four ads and asked which were made by AI. Only 1.4% got them all right.

Even digital natives flopped: 93% of under-30s said they were confident—but less than 2% passed. Confidence didn’t help older folks either. Many thought real images were fake.

Bottom line: if your ad looks polished and makes sense, most people don’t question the method.

Most Reactions Are Curious—Not Outraged:

When people learned an ad was AI-generated, the top emotions were curiosity and interest—not anger. Even those who felt deceived were in the minority.

Younger audiences were more likely to feel impressed. Older adults? A bit more sceptical, but not dramatically so.

The Guess × Vogue backlash a few weeks ago shows the limits, though. The issue wasn’t just that Guess used an AI model in its Vogue ad—it was that it felt fake in a way that clashed with the brand's image and values.

A Quick Reality Check From Me:

I looked at the AI ads used in the Magic Hour study (you can do so too, here)—and I’ll be honest, they were very well done. No weird hands. No glassy eyes. No tell-tale fingers doing math on their own. Whoever picked those examples wasn’t trying to make it easy to spot the fakes. And that’s important to note.

Yes, there’s a growing body of AI content that’s hard to distinguish from human-made work. But there’s also a mountain of it that still has the watermarks—awkward lettering, off-brand tone, and visuals that feel “off” in a way most people can’t articulate but instinctively don’t trust.

That’s why I stand by what I wrote earlier this month in “AI Marketing Trust Gap Widens”: AI isn’t the problem. Misuse is. People don’t mistrust tools—they mistrust how brands use them.

So yes, the study shows most people can’t spot AI ads when they’re done well. But the moment your message feels fake or your tone goes flat, your audience might not know it’s AI—but they’ll definitely feel like something’s off.

Use the tools. Just don’t hand them the keys to your voice.

AI Tools Are Useful. But They’re Not a Personality.

I recently tested an AI avatar for my daily videos. I thought it might help me save time and still show up consistently. But I couldn’t do it. First, the quality wasn’t great. But more importantly, it didn’t feel like me.

Authenticity is one of my core principles. I do use AI in the background—to help script, organise, and polish. But putting a digital version of myself on camera felt off-brand. Not wrong for everyone. Just wrong for me.

The tech’s impressive. But it’s not a shortcut to trust.

Transparency Isn’t Optional Anymore:

Over 90% of people said they want AI-generated ads to be labeled. Most don’t trust companies to regulate themselves—nor should they.

We’ve already seen what happens when the big platforms write their own rules. Meta’s internal policy once allowed AI bots to flirt with teenagers and spread racist junk as long as it was wrapped in technical disclaimers. OpenAI only added parental controls to ChatGPT after a teen took his life following months of AI conversations about self-harm.

These aren’t fringe cases. They’re warnings.

So if you’re using AI in your business—even just to make ads or write copy—be transparent. Say what’s AI-generated. Don’t hide it in the footer or behind vague phrasing.

Trust is hard to earn. Hiding how your content was made won’t help.

If the message is solid, the tool that helped shape it won’t be the problem.

So, Should You Use AI in Your Marketing?

If it helps you stay consistent, save time, or move faster—yes. But don’t use it to replace what makes your brand human. Use it to support the message, not distort it.

Your customers aren’t sitting around scanning every pixel. They’re looking for a message that makes sense and a brand they can believe in.

That’s where my 5-Minute Marketing Fix can help. It’s a free tool that will help you to write a one-liner that builds trust—even if your next ad was made by a robot.

👉 Download it free here

Related Articles:

1. Meta’s AI Flirts With Kids—What That Tells Us About Trust

If 90% of people want AI ads labelled, this article explains why. Meta’s chatbot policy allowed deeply inappropriate content—showing exactly why trust should never be outsourced to tech platforms.

2. ChatGPT Adds Parental Controls After Teen Tragedy

OpenAI only acted after a teen’s death. This post breaks down why emotional tone, disclaimers, and vague AI outputs create real-world risks—even for small businesses using “harmless” tools.

3. Vogue’s AI Model Ad Backfires—Marketing Lessons for Small Businesses

Curious why some AI ads spark backlash while others don’t? This case study of Guess’s Vogue ad explains exactly what happens when AI use clashes with brand values and public trust.

4. Why 95% of AI Pilots Fail and What to Do Instead

Most AI campaigns flop—not because AI doesn’t work, but because brands use it without a clear strategy. If you’re considering AI in your marketing, read this first.

5. AI vs Human Creativity in Problem Solving: What Works Best?

This Harvard-backed post shows why AI should support—not replace—your ideas. It’s a practical read for anyone trying to use AI tools without losing the human touch that makes marketing work.

FAQs on AI-Generated Ads and Brand Trust

How many people can actually spot an AI-generated ad?

Almost none. In a recent test by Magic Hour, only 1.4% of Americans could correctly identify which ads were made with AI—even though 85% said they were confident they could.

Do people trust brands less if they use AI-generated ads?

Most don’t. About 60% of consumers said they’d trust a brand the same or even more after finding out it used AI ads. That said, certain groups—especially women aged 45+—are more cautious.

Should small businesses disclose when content is made with AI?

Yes. Over 90% of people want AI-generated content to be labelled, and most don’t trust businesses to regulate themselves. Disclosing AI use builds credibility—especially when your audience values honesty.

What’s the risk of not disclosing AI use?

You risk losing trust. It’s not just about how good the content looks. If your audience feels misled or like the content doesn’t match your values, it can damage your brand. The Guess × Vogue backlash is a good example of this.

Is it okay to use AI in marketing at all?

Yes—as long as it supports your message rather than replacing your voice. AI can help with scripting, visuals, or speed. Just don’t let it take over the parts of your brand that need to feel real and human.

Why shouldn’t companies self-regulate AI use?

Because they’ve shown they can’t be trusted to. Meta allowed bots to flirt with teenagers. OpenAI waited until after a teen tragedy to add basic safety features. If the tech giants get it this wrong, small businesses need to be extra thoughtful.

How can I build trust with my audience while using AI?

Start with a clear, authentic message. Be transparent about how you use AI. Use it to enhance what you’re already doing—not to cut corners. And if you’re not sure what to say?

👉Download the 5-Minute Marketing Fix to write one powerful sentence that builds trust across every channel.