The Transparency Paradox: Examining 'Made with AI' Labels' Perspective on Audience Trust and Content Engagement

  • Unique Paper ID: 202670
  • Volume: 12
  • Issue: 12
  • PageNo: 8752-8768
  • Abstract:
  • The use of Generative AI (GAI) within digital media content led to the development of "Made with AI" labels in the form of Instagram and YouTube. Although the use of this label aimed to ensure transparency, its implementation has created a "Transparency Paradox." Considering the Generation Z target market, this research investigates how the use of such disclosure affects trust and engagement. The results highlight the existence of a "Competence Penalty," where the content that bears a label is viewed as having no sweat equity or passion. Thus, an inconsistency arises as the label lowers trust while maintaining engagement rates due to entertainment.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{202670,
        author = {Harshitha S and Sanju Xavier},
        title = {The Transparency Paradox: Examining 'Made with AI' Labels' Perspective on Audience Trust and Content Engagement},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {12},
        pages = {8752-8768},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=202670},
        abstract = {The use of Generative AI (GAI) within digital media content led to the development of "Made with AI" labels in the form of Instagram and YouTube. Although the use of this label aimed to ensure transparency, its implementation has created a "Transparency Paradox." Considering the Generation Z target market, this research investigates how the use of such disclosure affects trust and engagement. The results highlight the existence of a "Competence Penalty," where the content that bears a label is viewed as having no sweat equity or passion. Thus, an inconsistency arises as the label lowers trust while maintaining engagement rates due to entertainment.},
        keywords = {Transparency Paradox, Generation Z, AI Disclosure, Digital Trust, Content Engagement, Generative AI.},
        month = {May},
        }

Cite This Article

S, H., & Xavier, S. (2026). The Transparency Paradox: Examining 'Made with AI' Labels' Perspective on Audience Trust and Content Engagement. International Journal of Innovative Research in Technology (IJIRT), 12(12), 8752–8768.

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