The news: AI-generated ads can drive click-through rates (CTRs) that rival, and in some cases beat, human-made creative without sacrificing conversion quality.

• Human-made ads deliver a CTR of about 0.65%, while genAI ads reach 0.76%, per a Taboola study conducted by Columbia University, Harvard University, Technical University of Munich, and Carnegie Mellon University.
• Almost half (45%) of the AI-generated ads used in the study were mistaken for human-made, and many respondents often struggled to tell if an ad was AI- or human-made.

Ads that looked AI-generated—whether they actually were or not—tended to perform worse, suggesting that the perception of artificiality, not AI itself, turns people off.

What it means: The findings challenge the idea that AI-generated creative is lower quality or drives low-value clicks. Instead, it indicates that when obvious AI cues—such as excessive symmetry or heavy saturation—are avoided, genAI ads can perform on par with human-made content.

AI ads that were perceived as human-made delivered the strongest engagement overall, outperforming both clearly AI-looking ads and human-made ads, implying that how an ad feels matters more than how it’s made.

Recommendations for marketers: The opportunity is in using AI invisibly by pairing genAI’s speed and scale with human-led ideation and concept development. This can help maximize performance without producing monotonous, hollow content, and keep ads grounded in human-centered creativity.

• Use genAI to scale execution, not replace creative judgment.
• Train AI tools on brand voice and identity so AI-made assets flow with human-made ones.
• Choose tools based on what needs to be accomplished, like rapid A/B testing or scalable personalization, rather than hype.

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