Navigating the AI-Branding Nexus: Consumer Attitudes, Trust, and the Imperative of Authenticity in Emerging Markets

Abstract

The rapid integration of artificial intelligence (AI) into branding architectures has fundamentally altered how organizations communicate, personalize, and scale consumer engagement. Yet, the psychological and behavioral repercussions of AI-mediated brand interactions remain underexplored, particularly within emerging markets where cultural trust dynamics and institutional transparency expectations diverge from Western paradigms. Drawing upon a quantitative survey of 386 consumers interacting with Aljaied For Food Industries in Libya, this study examines how AI-driven brand authenticity, transparency, perceived challenges, and strategic opportunities collectively shape consumer attitudes and trust. Utilizing structural equation modeling (SEM), the empirical model demonstrates that AI brand authenticity exerts a robust positive influence on both consumer attitudes and trust, accounting for substantial variance alongside AI-related opportunities and challenges. Contrary to prevailing assumptions, AI brand transparency fails to exhibit a statistically significant direct effect on either construct, suggesting that transparency functions more as a baseline hygiene factor than a proactive trust-builder. Grounded in Social Identity Theory and Signaling Theory, the findings illuminate how AI deployments must align with culturally embedded expectations of sincerity, consistency, and ethical stewardship. The study advances academic discourse by contextualizing AI branding within a North African food manufacturing landscape and offers actionable frameworks for managers navigating the delicate equilibrium between algorithmic efficiency and human-centric brand integrity.