| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 22 |
NO. 2 |
PAPER 4 |
DOI: 10.34293/2321-2012.2026.0002.4 |
DETERMINANTS OF TRUST IN AI-POWERED ADVERTISING IN SAUDI ARABIA: EXAMINING THE ROLE OF CONSUMER ENGAGEMENT AND EMOTIONAL RESPONSE AS MEDIATORS |
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| Hassan Ali Alsaggaf* |
* Applied College King Abdulaziz University, Jeddah, Saudi Arabia
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| This study examines key determinants of trust in AI-powered advertising, focusing on perceived usefulness, AI familiarity, perceived risk, perceived ease of use, and ad transparency. Grounded in the Technology Acceptance Model (TAM) and Social Exchange Theory (SET), the study proposes a conceptual model, assessing both direct effects on trust and indirect effects via consumer engagement and emotional response. The model was tested, using Structural Equation Modelling (SEM) on data from a diverse sample of digital consumers, allowing simultaneous analysis of direct and mediated relationships. Findings revealed that perceived usefulness, AI familiarity, perceived ease of use, and ad transparency did positively influence trust while perceived risk exercised negative effect. Consumer engagement mediated the relationship between perceived usefulness and trust whereas emotional response mediated the link between ad transparency and trust. The study advances theoretical understanding of trust formation in AI advertising and offers practical insights for marketers, seeking to build trust through transparency and engagement. Future research may extend this framework across varied digital contexts. |
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