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Real Thoughts

Personal insights from our team

Consumers distrust AI, especially in marketing. Now what?

Greg Iszler smiling

Greg Iszler

VP, Experience Strategy

August 11, 2026
AI
Marketing

While marketers and their agencies are scrambling attention (and resources) to AI, the real influencer of consumer connection, trust, is often overlooked. This creates a major strain in the marketer-consumer relationship.

Trust in marketing has been dwindling for years, but decisions marketers are making in the AI age are eroding consumer confidence at an accelerated rate. Gallup’s July 2026 research found that average confidence in major U.S. institutions remained below 30% for the fifth consecutive year while confidence in large technology companies fell to a new low of 20%.

While AI didn’t create the gap on its own, it’s amplifying it.

illustration depicting a gap in trust between entities
The Trust GAP is being amplified by AI.

Generating content faster, cheaper and more prolifically isn’t what earns customers

Simply put, consumers and marketers are at odds with embracing AI. Canva’s 2026 State of Marketing & AI study found that 97% of marketing leaders now use AI in their daily creative work, with 99% expecting to increase their AI use. Yet 70% of consumers said they recognize AI-generated advertising because it feels off. Another 87% of consumers said good advertising requires a human touch.

While marketers are embracing AI (often lazily), consumers have noticed and are reacting poorly.

The term “AI slop” illustrates the tension. Using the word “slop” to describe AI content, including marketing, has been commonplace since the AI boom. The term is so popular Merriam-Webster made “slop” its 2025 Word of the Year.

Where are trust gaps for your competitors?

Recent research analyzing 25 million online comments found that accusations of AI slop have increased more than tenfold, and they’re as powerful as ever. The negative feedback has become a PR nightmare for brands, especially when the slop undermines a company’s existing reputation and values.

Take REI’s recent controversy, for example. The company has long held a reputation for being transparent and honest; however, a June 2026 slop scandal caused an uproar (see image below). For a week, REI accidentally served a slop ad when Meta’s Ad Server altered their non-AI ad photo without the brand noticing. Even though Meta took the blame, REI took the heat and their trustworthy reputation took the biggest hit.

social media post by REI that used an AI-generated image that received negative feedback
This REI ad received negative comments due to the extra handlebar created by AI on the seat.

So even if companies don’t use AI for their marketing endeavors, they could find themselves in the hot seat by failing to double-check if their marketing is being properly represented. Lazy marketing isn’t forgiven in the current landscape of distrust; it is at risk of being declared “slop” and further eroding trust.

How will your brand close the trust gap?

So how can brands help alleviate consumer frustration and combat distrust? The first step is disclosure. Nobody likes to feel tricked. Marketers are responsible for closing the gap between their AI excitement and consumers’ AI fatigue. They should reevaluate their policies around AI and focus their efforts on rebuilding trust.

In fact, Usercentrics found that 52% of consumers would pay more for brands that are transparent about AI, while 47% had already canceled, switched or reduced spending because of concerns about how brands used AI and personal data.

Without authenticity and trust, consumers are likely to tune out marketing altogether. Wise marketers can use this insight to their advantage. It’s the perfect time to turn toward human-designed creative work. The market is craving authenticity; brands that prove it will stand out favorably.

With AI, marketing seems to change faster than ever before. But in this era, it’s not about who adapts new tech first; it’s about who uses new technology ethically and honestly.

Greg Iszler smiling

Greg Iszler is the VP of Experience Strategy at REGROUP and serves as our Marketing and Technology SME.

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Real Thoughts by REGROUP is a blog series on LinkedIn. REGROUP Subject Matter Experts weigh in on industry topics that are in the zeitgeist.
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REGROUP is a woman-owned, full-service marketing agency helping complex brands find truth, build trust and power growth through our brand + performance solutions. With over 40 years of experience, we are people first and committed to using business as a force for good.
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REGROUP’S ROOTS RUN DEEP

Janet Muhleman co-founded Group 243 in Ann Arbor in 1975. Since then, her agency’s innovative holistic customer experience perspective drew the attention of clients and national and international agency holding companies alike.

By the time Jan and her veteran leadership team decided to buy back their independence in 2003, the agency had embedded additional DNA from some of the top agencies in the industry: including Omnicom and WPP. REGROUP’s founding that year allowed the team to tightly re-integrate their offerings around their long-standing customer experience approach and select opportunities based on a match of values and commitment to mutual growth. Those criteria remain today.

Throughout its history, REGROUP has remained independent and committed to using business as a force for good. We continue to help complex organizations align internally and externally through our brand + performance philosophy.

REGROUP’S ROOTS RUN DEEP

Janet Muhleman co-founded Group 243 in Ann Arbor in 1975. Since then, her agency’s innovative holistic customer experience perspective drew the attention of clients and national and international agency holding companies alike.

By the time Jan and her veteran leadership team decided to buy back their independence in 2003, the agency had embedded additional DNA from some of the top agencies in the industry: including Omnicom and WPP. REGROUP’s founding that year allowed the team to tightly re-integrate their offerings around their long-standing customer experience approach and select opportunities based on a match of values and commitment to mutual growth. Those criteria remain today.

Throughout its history, REGROUP has remained independent and committed to using business as a force for good. We continue to help complex organizations align internally and externally through our brand + performance philosophy.