Navigating Consumer Trust in the Era of AI-Driven Digital Advertising

The development of artificial intelligence (AI) has significantly changed the digital advertising landscape. However, consumer trust in the use of AI in digital advertising is a crucial issue to understand. This study aims to analyze the influence of perceived intelligence, transparency, and personalization of AI-based advertising on consumer trust levels. Using a quantitative approach through a survey of 500 respondents who are active social media users in Indonesia, the data were analyzed using Structural Equation Modeling (SEM). The results of the study indicate that perceived intelligence and transparency have a significant positive influence on consumer trust, while personalization has a moderate influence. These findings provide theoretical contributions to the digital marketing literature and provide practical guidance for marketers in designing AI-based advertising strategies that are trusted by consumers.