The short answer: it depends on the channel and on how well the AI content was actually implemented.
Here's the long answer.
The biggest myth still doing the rounds is that Google nukes AI content in the rankings. It doesn't, and Google has said so repeatedly. Its own guidance suggests using AI or automation isn't against the rules. What its systems actually evaluate is quality and originality, and whether the content shows real experience, expertise, authoritativeness and trustworthiness (E-E-A-T).
Basically, Google only really cares whether or not the content is useful.
Many large-scale studies have attempted to answer this question.
The report also found that only 14% of marketers believed AI-generated content was better than human-written content.
In paid media, AI as a tool behaves very differently to AI as a disclosed fact.
A 2025 peer-reviewed study published in the Journal of Business Management examined the effect of AI-generated images in advertising. When consumers were unaware of the source, attitudes toward AI-generated and human-made ads were broadly comparable. But when consumers were told the image was AI-generated, their attitude changed. They began viewing human-generated images more positively.
Research from the Nuremberg Institute for Market Decisions (NIM), a non-profit research institute, also found similar results through a series of controlled experiments. They concluded that simply labelling content as AI-generated leads consumers to rate it as less natural and less useful, even when the underlying content is identical to human-produced material. The label itself, not the content quality, drove the negative outlook.
The Interactive Advertising Bureau (IAB), surveying 505 consumers and 104 advertising executives in late 2025 and early 2026, found a major growing perception gap between the industry and its audiences.
While 82% of ad specialists believed younger consumers felt positive about AI-generated ads, only 45% of Gen Z and millennial consumers actually reported positive sentiment. That gap (37 percentage points) had widened from 32 points in a comparable 2024 survey. Among Gen Z specifically, 39% reported negative sentiment toward AI-generated advertising.
The picture isn't uniform. What we’re seeing in the agency is that for direct response and performance marketing, where success is measured by cost per acquisition, click-through rate and conversion rather than brand sentiment, AI-generated creative often matches or even exceeds human-made alternatives. The advantage comes mostly from volume: AI allows more variations to be tested faster, which compounds into better performance over time - but only is strong human oversight checks each creative against quality, relevance and resonance.
Stop asking "is AI content good or bad." It's the wrong question, and the research keeps confirming that. What actually matters:
Most of what's actually being tested right now isn't "AI vs. human" is AI-assisted work, where AI speeds up drafting or ideation and a human still owns the judgment calls. The evidence for that is solid. The evidence that AI content just wins on its own is much thinner, and in advertising specifically, the fact that consumers know is becoming as important as what was actually made.
As more peer-reviewed research lands, expect this picture to keep sharpening.

Ash is Rocket's in-house Marketing Coordinator and the Producer of the Smarter Marketer Podcast. With a passion for marketing and sharp analytical skills, she excels at uncovering the hidden stories behind what drives marketing success.
Ash has worked with B2B SaaS companies in the FinTech and EdTech industries in Australia and India. She holds a Master of International Business degree from the University of Melbourne.
When not busy marketing Rocket, you'll likely find her brewing a delectable cup of chai.

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