According to HubSpot's State of AI Report, 64% of marketing professionals already use AI in some capacity, with content creation ranking among its most common applications.
But does AI-generated content perform as well as content created by humans?
The short answer: it depends on the channel, the quality of implementation and how performance is measured.
Perhaps the biggest misconception surrounding AI content is that Google automatically penalises it. Google has repeatedly stated this is not the case.
In its official guidance, Google explains that the use of AI or automation is not inherently against its guidelines. Instead, its ranking systems evaluate content based on quality, originality and whether it demonstrates experience, expertise, authoritativeness and trustworthiness (E-E-A-T).
This distinction is important because it shifts the conversation away from who wrote the content and towards whether the content is genuinely useful.
Several large-scale studies have attempted to answer this question.
However, the report also found that only 14% of marketers believed AI-generated content was better than human-written content, suggesting that most marketers view AI as a productivity tool rather than a replacement for subject matter expertise.
Across Google's guidance and independent industry research, several conclusions consistently emerge:
Paid advertising offers a more measurable lens for evaluating AI content, given the direct feedback loop of impressions, clicks and conversions. But the research here is more nuanced than it might first appear, and it draws a meaningful distinction between AI as a creative tool and AI as an optimisation system.
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, drives the negative evaluation.
The Interactive Advertising Bureau (IAB), surveying 505 consumers and 104 advertising executives in late 2025 and early 2026, found a significant and growing perception gap between the industry and its audiences.
While 82% of advertising executives 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 is not 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 through iterative optimisation.
The paid media landscape requires nuance. AI-generated creative is not simply good or bad for advertising performance. The channel type, campaign objective and whether consumers know the content is AI-generated all influence outcomes. Practitioners running direct response campaigns have more latitude; those running brand awareness work should weigh consumer sentiment data carefully.
One of the clearest findings from the current body of research is that discussions about "AI versus humans" oversimplify the issue.
Most published evidence tests AI-assisted marketing, where marketers use AI to accelerate drafting, testing, optimisation or ideation.
Across SEO and paid media, there’s strong evidence that AI improves efficiency. Evidence that AI-generated content consistently delivers superior marketing performance, however, is considerably less definitive. And in paid advertising specifically, a growing body of research suggests that consumer awareness of AI involvement introduces a perception dynamic that practitioners cannot ignore.
As more peer-reviewed research becomes available, our understanding of AI's impact on marketing performance will continue to evolve.

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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