The Impact of AI-Generated Advertising and Virtual Influencers on Consumer Perception and Brand Authenticity

Abstract

The rapid integration of Artificial Intelligence (AI) into digital marketing has spurred the emergence of AI-generated advertising and virtual influencers, synthetic personas that are transforming how brands communicate with audiences. This study examines the evolving dynamics of consumer engagement, authenticity, and brand perception through the lens of these technologies. Anchored in Postmodern Media Theory and Technological Determinism, the research explores how hyperreal digital content and algorithmic creativity challenge traditional boundaries of human influence, trust, and authenticity in advertising. By employing qualitative content analysis of AI-generated advertisements and social media content from virtual influencers, alongside case studies of selected Indian campaigns. the study investigates how synthetic media shape consumer perceptions. Through an analysis of visual narratives and consumer reception, the research critically assesses the communicative functions and ethical implications of algorithmic creativity in advertising. This study contributes to the understanding of how synthetic media are not only reshaping brand storytelling but also redefining the very notion of influence in a post- human, digitally-dominated era.