Is AI really helping marketers, or is its inauthenticity scaring audiences away?

Marketers, you're probably tired of hearing about the impact artificial intelligence (AI) has had, and will have, on the industry. But how do consumers feel about it?

In spite of AI's evident popularity amongst those in the industry, it seems the digital phenomenon can rub consumers in the wrong way. A global study conducted by Qualtrics involving nearly 24,000 consumers from 23 countries found that comfort levels with AI have generally declined. For instance, consumers are 10.5 points less comfortable using AI for common activities compared to last year. Additionally, more than half of consumers are concerned about the lack of human connection when interacting with AI, a concern that has increased slightly over the past year.

Brands globally, along with Singapore and Malaysia have faced criticism in their use of AI. During Christmas Coca-Cola's AI-generated reboot of its classic ad, “Holidays Are Coming” caused quite a stir, with many saying they found it "distasteful", "scary", "soul-less" and "uninspiring". Some even said it looked "cheap" and that it did not bring forth the feelings that holiday ads should.

Meanwhile, Singapore's Ministry of Finance was also called out after it released a series of three AI-generated images to bring awareness to its enhanced Assurance Package, a scheme meant support Singaporean families with financial aid. Netizens were quick to criticise the image with some asking why real images of Singaporeans were not used and with some saying it looked "scary" and like a "scam".

Just this year, the mascot for the latest Visit Malaysia Year 2026 tourism campaign's authenticity was also questioned, where netizens were seen accusing the artist of mascots Wira and Manja of using AI.

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On the flip side, the rise of AI in the marketing industry across the Asia Pacific (APAC) region is undoubtedly transforming how businesses engage with consumers. According to a study by Deloitte, over 60% of marketing leaders in APAC have integrated AI into their marketing strategies, with a significant focus on customer segmentation, personalized marketing, and predictive analytic. And on average, 20% of the marketing budget in APAC organisations is now allocated to AI technologies, reflecting a strong commitment to leveraging AI for competitive advantage.

While there is no doubt that AI is inherently making its digital mark on the marketing world, why do consumers continue to feel irked by the tool? 

What is causing the caution?

Milan Agnihotri, head of growth and strategy actions, Dentsu Malaysia said consumers inherently value "authentic intelligence" and prefer to see it outperform or surpass "artificial intelligence". As a result, AI or AI-generated outputs are often perceived as lacking soul and inspiration. To address this perception, Agnihotri explains that marketers must ensure that human intervention enhances the outputs of AI/GenAI.

Furthermore, explicitly acknowledging this collaboration in the credits can help challenge and mitigate these biases, fostering greater trust and acceptance. When asked where the skepticism might have derived from, he pointed to the recent job losses in the IT industry where prominent tech leaders acknowledged that AI has played a role in replacing certain roles.

Despite the growing resentment, Agnihotri said that AI applications in personal domains, such as entertainment and communication, are generally more accepted.

Chew Guo-You, managing director at Tommy said the industry is likely in the "uncanny valley" period of generative AI, where there is more scrutiny and sensitivity around creatives generated with AI tools. 

"It presents a clear reminder to marketers of gen AI's limitations but also encourage consumers to rethink their perspective on the technology," he added. 

Chew also explained that consumers are trained to spot the slightest divergence from 'normal' behaviour, which in the space of marketing are campaigns that fail the eye test and overuse AI.

How can marketers navigate these choppy digital waters? 

Agnihotri prompts marketers to tap into one's emotional resonances for "authentic intelligence" to bring out the true strength in creative and strategic outputs. "While AI can serve as a powerful tool for generating ideas or improving workflows, the final output must be elevated through human creativity, judgment, and expertise to ensure it connects with audiences on a deeper level," he said. 

He added, "This fusion of AI-driven efficiency and human insight results in work that is not only efficient but also inspiring, impactful, and aligned with the brand's core values". 

Agnihotri explained that leveraging AI to generate a variety of options efficiently, followed by the application of authentic intelligence, human expertise, to refine and elevate the selected outputs can balance automation with a human touch in AI-powered marketing efforts. This ensures that the final deliverables are not only aligned with business, brand, and marketing goals but also resonate deeply with the target audience.

"Human intervention brings critical elements to the table, such as fine-tuning tonality, localising expressions, adapting to cultural nuances, and ensuring consistency with the brand’s core values and the audience’s lingo. This synergy between AI efficiency and human creativity strikes the perfect balance, delivering outputs that are both impactful and relevant," he said. 

Additionally, Chew noted that marketers should have a clear vision in their minds as to the utility of AI in their marketing efforts, and agencies need to do the same to define a role for the tools in their creative process. 

"There is definite space for AI, but tools should only be employed with clearer education around its benefits and ethical & environmental impacts for creatives to understand how best to use the tools to aid the creative process as opposed to overhauling it," he said. 

Why you shouldn't shy away?

Despite the negative sentiments from consumers, Randy Duax, managing director at Stagwell, APAC said the use of AI in the right context has the ability to make campaigns smarter, sharper and more personal.

"AI in marketing is not about replacing the human touch; it’s about supercharging it," he said. 

He added, "AI doesn’t create soul-less work, lazy marketers do. The key is to use AI as a tool, not a crutch. Marketers should be giving AI the heavy lifting of analysing data and spotting trends, then layering the creativity and humanity". Duax also noted that brands who embrace and constantly innovate with AI will be the ones who thrive in the industry. 

"Agentic AI is a great starting point for adapting campaigns in real-time and acting as a multi-hyphenate marketing toolbox: a data analyst, copywriter and trend spotter, all rolled into one," he said. 

Duax added, "The most important thing is making sure that the humans stay in charge of the big ideas". 

As AI is set to become more prominent in the industry, Duax urges marketers to keep AI in the passenger seat while humans take the wheel. 

"At its best, AI empowers marketers to focus on innovating, connecting and creating. The human touch is irreplaceable – it’s what makes campaigns resonate," he said. 

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