Abstract
Advancements in artificial intelligence (AI) are reshaping how consumers interact with advertising content, transforming their perceptions of reality, and redefining viewer engagement. However, research into consumer reactions to the use of AI in advertising remains limited. Drawing on Mandler's theory of value, this research investigates consumers' emotional and cognitive responses to the use of AI‐generated deceased celebrities in advertising. A model was developed and empirically tested to examine the role of emotions in shaping consumers' perceptions of deception, attitudes, and behavioral intentions toward the advertised brand upon initial exposure to these digital recreations. This framework was tested across two studies using structural equation modeling and a representative sample of US consumers. The results supported the proposed model, showing that perceived incongruity triggers physiological arousal, which shapes consumers' positive and negative emotions. Positive emotions reduce perceived deception while negative emotions enhance it, and perceived deception negatively impacts attitude toward the brand and purchase intent. The moderating roles of celebrity attachment and brand heritage were explored. This research contributes to the growing body of literature on the psychological effects of AI applications in marketing communications. The results provide insights to managers who are considering utilizing deceased celebrity likenesses through AI.