Do I spy AI? The impact of AI-generated images on trust and donation behaviors

Artificial intelligence (AI) is changing the business landscape in countless ways. This research examines the role of AI-generated images in business applications, an area that has received less attention relative to other business-related AI technologies. The results of three experimental studies indicate that people can tell the difference between real and AI-generated images and that the former leads to increased levels of trust. Our findings further show that in charitable settings, real (versus AI-generated) images increase donation intentions and amount through the mediating influence of trust. This empirical and conceptual evidence offers valuable insights to businesses that are considering incorporating AI-generated images.