GEMINI
Generative artificial intelligence is transforming advertising production, but using it does not guarantee that a campaign will capture the attention of younger consumers. 40% of Generation Z and millennials say that high-quality images or graphics are a determining factor in engaging with ads created using GenAI, while 39% consider entertaining content important, according to Statista’s The State of AI in Advertising report. The findings show that brands face an audience familiar with AI but unwilling to sacrifice creativity and quality in exchange for automation.
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The advancement of tools capable of producing images, text, and advertising variations in seconds has created opportunities to reduce production times and multiply content output. However, Statista warns that generative artificial intelligence should not become a shortcut for lowering creative standards.
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This conclusion is particularly relevant for companies seeking to win over Gen Z and millennials, two generations that are among the most exposed to AI-generated content and, at the same time, are better equipped to recognize it.
What do Gen Z and millennials want from AI-generated advertising?
The study cited by Statista, conducted between October 2025 and January 2026, analyzed the factors driving engagement with AI-generated advertisements among Generation Z, aged 16 to 27, and millennials, aged 28 to 43, in the United States.
The results place creative quality above other factors: 40% mention high-quality images or graphics; 39%, entertaining content; 35%, clear disclosure that AI was used to create the advertisement; 30%, personalization based on their interests; 23%, interactive elements; and only 15% consider the involvement of a celebrity or influencer relevant.
The findings serve as a warning for brands: having tools capable of producing large volumes of content more quickly does not mean consumers will automatically embrace those ads.
In fact, Statista argues that companies should not lower their production standards. GenAI should be used with the same creative rigor and visual quality as any other advertising format.
Gen Z embraces AI but can also recognize it
The expectations of younger consumers come amid a significant generational divide.
According to another survey included in the report, 44% of people aged 18 to 35 say they can identify advertisements created with artificial intelligence. That proportion drops to 26% among consumers aged 36 to 55 and falls to just 13% among those aged 56 to 75.
Among consumers aged 18 to 35, 35% say they like brands using AI to create advertising. Among people aged 56 to 75, the figure is just 19%.
This combination presents a particular challenge for advertisers: Gen Z and millennials may be more receptive to AI, but they are also better prepared to detect when a brand uses it.
Transparency becomes part of the marketing strategy
Quality is not the only requirement. 35% of young respondents consider it important for advertisements to clearly disclose when artificial intelligence has been used in their creation.
Transparency is therefore becoming another element of marketing strategy, particularly as generative tools produce images and videos that are increasingly difficult to distinguish from traditionally created content.
Personalization also remains relevant. 30% say advertisements tailored to their interests increase the likelihood of engagement, a feature that can benefit directly from AI’s ability to analyze large volumes of information and generate different versions of a campaign.
Marketers may be overestimating AI’s creativity
The challenge for brands is growing because there is a gap between how advertising professionals and consumers perceive AI-generated advertising.
While 51% of advertisers describe brands that use GenAI in their ads as “creative,” only 35% of Gen Z and millennials share that perception.
The difference is even greater when it comes to innovation: 49% of advertisers consider brands that use GenAI “innovative,” compared with just 23% of younger consumers. Similarly, 46% of advertising professionals consider these brands “forward-thinking,” compared with 22% of Gen Z and millennials.
The report identifies a paradox that will shape the future of generative advertising: companies can produce campaigns faster and more efficiently, but they still depend on creativity, authenticity, and execution to capture consumer attention.
