Ethics on trial: how generative artificial intelligence misuse fuels brand cancellation

Purpose Generative artificial intelligence (GenAI) misuse has emerged as a critical issue in businesses and affects customer relationships with the brand. This study examines the relationship between GenAI misuse and brand cancellation, considering the mediating role of moral decoupling and the moderating effect of psychological distance. Design/methodology/approach This study adopted an experimental research design, comprising two separate studies. Data were collected from 509 valid respondents recruited through an online research platform using simple random sampling. The primary data analyses include mean difference tests and relationship-based analyses (such as hierarchical regression, mediation analysis, and moderated mediation analysis using PROCESS Models 4 and 8). Findings The findings demonstrate that GenAI misuse (intentional and unintentional) significantly affects brand cancellation. Moral decoupling partially mediates this relationship, whereas psychological distance significantly moderates the relationship between intentional GenAI misuse and moral decoupling. Originality/value Unlike prior research about cancel culture that primarily focused on corporate misconduct or celebrity scandals, this study is among the first to examine the relationship between GenAI misuse and brand cancellation. Additionally, much existing GenAI misuse research predominantly relies on qualitative methods. This study, however, conceptualises GenAI misuse as intentional versus unintentional and experimentally compares its differential effects on customer responses.