AI-Generated Ads Look Human but Fall Short on Sales, New Research Shows
Artificial intelligence can produce ads that consumers cannot distinguish from human work, but those ads consistently underperform when it comes to driving sales, according to a study from research firm Ipsos and two faculty members at Syracuse University's S.I. Newhouse School of Public Communications.
The research tested 20 ads across 10 brands with 3,000 U.S. respondents. Human-made ads outperformed AI counterparts by a measurable margin, even though the creative quality gap was smaller than many in the industry expected.
What the study measured
Researchers paired existing human-made ads produced before 2021 with fully AI-generated versions built from identical strategic briefs-the documents ad professionals use to outline campaign objectives and messaging. Both sets were then shown to real consumers.
The brands tested spanned multiple sectors: Cheerios, Chewy, Febreze, Fiat, H&M, Old Navy, Herbal Essences, Ray-Ban Meta, TurboTax and Visa.
The three key findings
Consumers can't tell them apart. Only 13% of viewers who saw an AI ad were confident it was machine-made-the same percentage who suspected human-made ads were AI-generated. Forty percent of all viewers remained uncertain either way.
But sales impact differs significantly. Using Ipsos' sales-validated performance measures, human-made ads over-indexed against the benchmark by 11 points on average. AI-made ads under-indexed by five points. In practical terms, human ads are predicted to drive stronger short-term sales impact.
AI struggles with emotion and storytelling. AI performed best on straightforward, product-driven briefs. It faltered when the creative challenge required emotional resonance, narrative depth, or a distinctive point of view. The strongest results came from the Cheerios pairing, where a deeply human brief produced the highest combined effectiveness scores across both versions.
What this means for sales teams
The research directly addresses a question CMOs and sales leaders are being asked with increasing frequency: Can AI replace creative agencies?
The answer, according to the data, is no-at least not yet. AI is a capable tool for executing straightforward campaign elements. But human creativity still delivers a measurable competitive advantage when campaigns need to connect emotionally with audiences and drive purchase decisions.
Adam Peruta, director of the advanced media management program at Newhouse, oversaw the technical side of the study. Carrie Riby, a professor of practice in advertising, brought strategic expertise. Both emphasize the same conclusion: do not settle for "good enough." AI has a role in modern campaign strategy, but it is not a replacement for human-led creativity.
For sales professionals, the implication is straightforward. The ads and content driving your pipeline matter. If they're built purely for efficiency rather than effectiveness, your conversion rates will likely suffer.
Learn more about AI for Sales and how to evaluate AI tools within your revenue strategy.
Your membership also unlocks:
