Automated interactions, authentic bonds? AI disclosure, consumer perceptions and loyalty dynamics on social media platforms

Purpose This research investigates the effects of disclosing AI usage on social media platforms on brand loyalty. Design/methodology/approach Three experiments using between-subjects designs (N = 700) test a moderated mediation model. Study 1 establishes the main effect and mediating mechanism using a fictitious brand. Study 2 employs a real brand to examine how existing relationship strength (followers vs. non-followers) moderates the disclosure effect. Study 3 investigates consumers' AI-trust propensity as an individual-level moderator. Findings AI disclosure significantly weakens brand loyalty through diminished perceived relational investment. Consumers interpret AI-mediated interactions as signals of reduced brand effort and care. Moreover, brand followers demonstrate greater resilience to AI disclosure than non-followers, and consumers with high AI-trust propensity exhibit alleviated negative reactions. The indirect effect through perceived relational investment is weaker for both followers and AI-trusting consumers. Practical implications Instead of universal AI disclosure policies, companies should pursue segmented disclosure strategies based on relationship depth and consumers' technology attitudes. Companies should focus on relational investment through enhanced personalization, human oversight messaging or hybrid AI-human service models. Originality/value This research introduces perceived relational investment as a new mechanism linking AI disclosure to loyalty, challenging the supposition that AI transparency always yields positive outcomes.