Hyper-personalized Gen AI ads trigger curiosity, concern among Indian Gen Z

India's digitally native Generation Z is responding to hyper-personalized advertising created by generative artificial intelligence (Gen AI) with a blend of curiosity, caution, and emotional intensity, according to a new study that offers a revealing window into how Gen Z interacts with AI-driven marketing experiences.

The research, titled “Gen AI – Gen Z: Understanding Gen Z’s Emotional Responses and Brand Experiences with Gen AI-Driven, Hyper-Personalized Advertising,” is published in Frontiers in Communication.

The paper explores the emotional landscape and brand interactions of young Indian consumers as they navigate a fast-evolving world of algorithmic advertising. Leveraging qualitative interviews with 40 participants, the study identifies two major themes: emotional response and brand experience that shape how Gen Z perceives and reacts to Gen AI-powered advertising strategies.

How does Gen Z emotionally engage with AI-generated ads?

The research reveals that Gen Z displays a complex spectrum of emotional responses to hyper-personalized advertising generated by artificial intelligence. For many participants, AI-generated ads triggered genuine curiosity and interest. These reactions stemmed from the novelty of the medium, the visual sophistication of the content, and the perceived relevance of the messaging.

However, this fascination is accompanied by significant apprehension. A portion of the participants expressed discomfort with how accurately AI could predict their preferences, which sometimes created a sense of being watched or manipulated. These reactions were especially pronounced when the ads touched on personal habits or behaviors the user had not explicitly shared online. For some, this bordered on a sense of intrusion, raising red flags around data privacy and the boundaries of ethical personalization.

The fear was not merely technical but emotional, rooted in a growing awareness of how digital systems operate behind the scenes. While Gen Z is generally considered tech-savvy, the idea of being profiled and targeted with increasing precision unsettled some participants. This duality—an embrace of personalization coupled with concern over algorithmic surveillance—defines much of Gen Z’s emotional relationship with Gen AI advertising.

In what ways are brand eperiences shaped by AI personalization?

The study also explores how hyper-personalization influences brand experience. Participants acknowledged that Gen AI-generated ads often made them feel more seen and understood by brands. This, in turn, increased their likelihood of engagement, whether through clicking, browsing, or purchasing.

The appeal of targeted marketing lies in its precision. Ads that reflected personal interests or aesthetic preferences were viewed as more engaging and less intrusive than generic campaigns. For Gen Z, who are used to algorithmically curated content across social platforms, such personalization felt natural and even expected.

More importantly, repeated exposure to well-tailored AI content contributed to deeper brand loyalty. Participants described stronger emotional connections with brands that consistently delivered relevant and timely content. This sense of connection was particularly powerful when the ad narrative aligned with the consumer’s identity or values.

At the same time, the researchers caution against overreliance on automation. While Gen AI can generate high volumes of content, there is a risk of emotional fatigue if the personalization becomes too intense or overtly manipulative. Gen Z values authenticity and may recoil from ads that appear to exploit personal data purely for commercial gain.

What ethical considerations arise from Gen AI advertising?

The study explores the ethics and trust dimension. Many participants questioned how much data companies collect and how it is used to inform AI-generated content. The lack of clear communication from brands about their AI practices contributed to skepticism.

Several participants indicated they had begun adjusting their online behavior to avoid being tracked, deliberately withholding information or disabling features like location sharing. This form of passive resistance suggests a growing awareness of surveillance capitalism and its psychological impacts.

The study calls attention to a shifting paradigm where emotional intelligence in advertising must extend to AI systems themselves. In the view of Gen Z, personalization alone is not enough; it must be paired with respectful data practices, clear boundaries, and a human-centered approach to content creation.

Gen Z's feedback also hints at a potential future for co-creation between users and brands. Some participants expressed openness to AI-curated content when it included user input or was based on transparent preferences rather than opaque algorithms. This points to an emerging model of participatory advertising, where AI serves not as a manipulative force but as a collaborative tool.