Understanding Generation Z Perceptions of Artificial Intelligence in Marketing and Advertising

Abstract

Abstract: The driving force in the current era of disruptive marketing is the personalization of commercial messages with the goal of developing an extreme intimacy with the consumer via data analytics and artificial intelligence (AI). While the benefits of AI to marketing and advertising are well documented, less understood is the possible negative impact on the individual and society. This study investigates Generation Z (Gen Z) perceptions of AI in marketing, as a step toward a better understanding of its aggregate value, by exploring participants' levels of 1) awareness and understanding of AI in marketing, 2) concern about data privacy, and 3) concern about psychological profiling, stereotyping, and manipulation. The results of this study find a contradiction in how AI in marketing is generally perceived versus how specific issues are perceived. For this group of young people, there is a low level of concern about the use of AI in marketing, but higher levels of concern were reported for specific issues regarding personal data, psychological profiling, stereotyping, and manipulation.