Cheating or Competing? University Students’ Experience of AI Marketing and What It Means for AI Literacy Programming

ABSTRACT Given generative AI's rapid incursion into higher education, we examined how AI tools are marketed to US college students and how students experience AI promotions. Using a scalable action research model, we collected and analyzed 131 social media ads, 48 student interviews, and field notes compiled by three interns at student‐facing AI companies. Interviewees described AI use as a practical necessity shaped by grading systems, peer norms, and AI's digital ubiquity. While many associated AI with cheating and worried about dependency and learning forfeitures, most felt compelled to adopt it to stay competitive, reflecting an internalized entrepreneurial imperative. Further, most favored product over process, as do many higher education systems. Findings indicated a need for destigmatization, more open student‐teacher exchange, and marketing literacy education supporting students in critically analyzing promotional strategies as a regular part of AI hygiene. Results are being used to update the California State University system's AI micro‐credential.