Current Volume 9
Abstract
The Indian digital economy, with more than 800 million internet users and a burgeoning ₹2,200 crore influencer industry, is a rapidly evolving space that has brought a disruptive force into the picture: Artificial Intelligence (AI) virtual influencers. While brands like Nykaa and Puma have increasingly embraced these synthetic entities for commercial use, there is a critical “credibility gap” in how Indian Gen Z, who have a spending power of ₹71 thousand crore ($860 billion). This thesis explores how AI identity disclosure affects consumer trust and purchase intention, and how the type of influencer affects it, with a focus on perceived authenticity. The study used a convergent mixed-method research design, which involved three strands of data: a quantitative survey with Indian Gen Z respondents, semi-structured interviews, and a secondary comparative analysis of case studies such as AI influencers: Kyra, Naina, Lil Miquela and human influencers: Kusha Kapila, Dolly Singh, Emma Chamberlain. Results show that there is a substantial “Trust-Action Gap”. Human influencers outperformed AI influencers on all metrics, including trust and purchase intent, thanks to their perceived emotional depth and "Experience" in mind belief. The results suggest that explicit disclosure of AI harms the belief of authenticity, while hiding AI leads to resistance to "advertising literacy" and ethical backlash. The perceived authenticity (passion, interactivity, symbolism, consistency, originality and transparency) was confirmed as the key mediating mechanism between the variables of the study and the purchase intent. The study finds that, although AI influencers provide brands with constant availability and creative control, they have been most successful in “low emotion” industries, such as gaming and technology. In an emotional industry such as wellness and beauty, the one thing that's driving loyalty is human relatability. The thesis suggests a ‘hybrid' approach for Indian brands and enforces the 2024 - 2025 ASCI guidelines for virtual influencer disclosure to ensure continued consumer trust in the ever-evolving digital landscape of India.
Keywords
AI Influencers, AI Disclosure, Consumer Trust, Perceived Authenticity, Influencer Marketing
Citations
IRE Journals:
Sakshi Jain, Dr. Bhargavi D. Hemmige "The AI Disclosure Paradox: AI vs. Human Influencer Trust Among Indian Gen Z" Iconic Research And Engineering Journals Volume 9 Issue 11 2026 Page 2482-2510 https://doi.org/10.64388/IREV9I11-1717961
IEEE:
Sakshi Jain, Dr. Bhargavi D. Hemmige
"The AI Disclosure Paradox: AI vs. Human Influencer Trust Among Indian Gen Z" Iconic Research And Engineering Journals, 9(11) https://doi.org/10.64388/IREV9I11-1717961
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