Abstract
As artificial intelligence generated content (AIGC) becomes increasingly prevalent, firms have begun to adopt generative artificial intelligence (GenAI) to produce advertisements, prompting growing research in GenAI advertising effects on consumers. However, the existing literature lacks a systematic literature review that integrates the positive and negative effects of GenAI advertising and the underlying psychological mechanisms. To address this gap, this study reviews and analyzes 51 academic articles on GenAI advertising published between 2020 and 2025. The review synthesizes the effects of GenAI advertising on consumer attitudes and behavioral intentions and identifies contextual conditions and strategies that may mitigate its negative effects. The findings organize prior research into four major agendas: (1) the impacts of AIGC presentation and production processes on consumer behavioral intentions; (2) perceived authenticity, trust, and positive emotional pathways in AI advertising; (3) sources of aversion to AI advertising and mitigation strategies; and (4) source differences and media differences in AI advertising. In addition, this review proposes an integrative research framework and twelve research questions to guide future studies. As the first systematic review focusing on GenAI advertising, this study provides a structured theoretical foundation for AI advertising research and offers practical insights for managers.