Discover the advantages and disadvantages of AI-generated ads for small businesses, with benefits, risks, and whether it's the right approach for your brand.

With 63% of small businesses using AI within their daily work routines, the prospect of increased productivity rates is impossible to ignore.

New to this arena are AI-generated ads. While they can lead small businesses to growth opportunities by balancing accessible marketing at scale, they do risk continuous controversy with consumer opinion.

So, although it’s clear the marketing industry is embracing AI-generated ads with open arms, we’re here to find out what consumers feel about this new technology, and whether these AI-ads deserve a place in your marketing strategy.

How can AI ads benefit your business?

Artificial Intelligence is no longer a tool only accessible to large corporations. It’s now an essential structural component of successful advertising and marketing for businesses of all sizes.

For small businesses, AI is an amazing opportunity to grow and develop marketing opportunities, not only reducing costs but also maintaining competition and innovation with other firms.

What was once months of work, content design, strategy and production can be finished in just days or weeks with the right professional input.

For example, just one piece of footage and a single image can be recycled and edited for multiple purposes, optimising its use and saving resources for other focal areas.

With 76% of marketing leads choosing to invest in generative AI, this form of content creation is fast-paced and user-friendly. From analysing consumer data to brainstorming ideas and creating exciting campaigns, AI-generated ads can help small businesses produce marketing content at a scale and speed that was previously out of reach.

In assisting businesses in creating relevant marketing resources that align with brand identity, AI ads can also adapt to specific target audiences.

Therefore, on the back of all these benefits, why shouldn’t every small business make adopting AI-generated ads the priority on their to-do marketing lists?

How can AI ads harm your business?

Even though AI ad generation is being positively embraced and utilised within the marketing industry, a trust gap remains between consumers and businesses.

Sceptical consumer perceptions continue to emerge about this form of advertisement swarming their social media feeds. Ultimately, these anxieties and negative beliefs about AI indicate that trust levels are poor when it comes to AI-generated ads.

While some AI-generated content is celebrated for producing enticing, personalised ads, it’s also part of the same conversation as fake videos and advertisements, which consumers consider low quality and deceitful.

AI does make our lives easier, but without trust, you’re on a mission to nowhere. And the numbers don’t lie. 92% of consumers take action when they trust a brand, compared to the 71% who desert a brand the moment that trust is broken.  

Consumers state an ‘uncanny valley’ feeling when seeing AI ads appear on their feed. AI-generated human lookalikes appearing in videos and images distract and confuse audiences. These AI ads, commonly labelled as ‘soulless’ and ‘algorithmic’, with little human input, feel mass-produced and uncomfortable to consumers.

This creeping doubt is the last thing small businesses need. AI-generated ads that degrade engagement only harm a brand, no matter the ease and speed of production.

Furthermore, the homogenisation and lack of authenticity are major characteristics of AI-generated content and huge turn-offs for consumers. As more and more adverts are produced in this way, all ads begin to blend in repetition and inauthenticity.

This exhausts audiences and diminishes interest as consumers crave “humanness” associated with unique qualities and transparency.

How AI is effectively used in marketing

When utilised appropriately, AI can produce a clear brand identity, enhancing consumer confidence and purchase intention. However, to benefit small businesses, marketing professionals must incorporate human direction, judgment, and creativity. These essential components are crucial to its success. By emphasising its ability to support, AI ads can enhance rather than replace human work.

It shouldn’t be ignored that AI is encouraged in the industry, in a future where this technology develops and intertwines with human creativity and skill, maintaining a connection to consumer individuality and emotional intelligence. With this in action, small businesses can gain trust and increase participation.

By reintroducing human quirks and “realness” alongside a reinforcement of quality standards and guidelines, the gap between excitement and scepticism may lessen, with consumers likely to embrace the collaboration between us and AI.

Ultimately, the success of any advertisement depends on its ability to connect with its intended audience. Whether AI plays a role in its creation or not, businesses should focus on their marketing objectives and ensure that human expertise guides decisions around messaging, creativity, and audience suitability.

When used responsibly, AI-generated advertising can be a powerful tool that supports business growth. But until then, we encourage brands to seek support before they potentially sacrifice their all-important reputation and authenticity.

Take the first step to AI-generated ads with a trusted marketing agency

We understand that while AI-generated ads offer exciting opportunities, taking the leap can feel both uncertain and risky.

But knowing consumer trust is a top priority for you, that’s what we’re here to build!

At Content Chef, we recognise the apprehension behind AI. However, we know the recipe for introducing and implementing this new technology to benefit your business.

So let us cook. Get in touch.

Written by Emma McAuliffe