AI ads almost indistinguishable – but they don't perform as well

Advertisements generated by artificial intelligence are nearly indistinguishable from human-made ones, but new research shows they consistently underperform compared to human-made work when it comes to predicting short-term sales impact. 

The study from global research firm Ipsos, in collaboration with two faculty members from Syracuse University in the US, tested 20 ads across 10 brands with 3,000 respondents. They found that human-made ads outperformed their AI counterparts, though the gap between the two was slim. 

The study paired existing human-made ads – produced before 2021 to ensure AI tools were not used – with fully AI-generated counterparts built from the same strategic brief. The ads were then viewed by real consumers. 

The study produced three findings that promise to generate conversation across the advertising industry. 

• Consumers largely cannot tell the difference. Only 13% of viewers who saw an AI-generated ad were at least somewhat confident it was made by AI – the same share as viewers who suspected human-made ads were AI-generated. With 40% of all viewers uncertain either way, the line between human- and machine-made advertising is blurring quickly. 

• Despite that perceptual similarity, a measurable effectiveness gap emerged. Using Ipsos’s sales-validated measures of advertising performance, human-made ads over-indexed against the benchmark by 11 points on average, while AI-made ads under-indexed by five. In practical terms, human advertisements are predicted to drive stronger short-term sales impact. AI can produce credible work, but on average it does not move the needle the same way. 

• AI performed best when the brief was straightforward and product-driven but struggled when the creative challenge called for storytelling, emotion or a genuine point of view. The strongest result in the study came from a campaign pairing where a deeply human brief produced the highest combined effectiveness scores across both versions. 

So, can AI replace creative agencies? 

“Every [chief marketing officer] is being asked whether AI can replace their creative agencies, and creative directors are wondering about their futures,” Ryan Barthelmes, Senior Vice President of Creative Excellence at Ipsos, says.  

“This research gives us a framework for that conversation. AI is a powerful tool, but the data shows that the human capacity for storytelling and emotional connection still creates a measurable competitive edge. The future is humans and AI working together.” 

Says a statement from Syracuse University: “The study’s key recommendation is clear: Do not settle for ‘good enough’. AI has an important role in modern campaign strategy and execution, but it is not a replacement for the human-led creativity needed to deliver a competitive advantage.”