Abstract
The present study investigates the distinct advantages that conversational artificial intelligence (AI) agents provide consumers, including social benefits and communication sincerity. Additionally, this research examines how the exhibition of these attributes in advertisements impacts consumer perceptions. In doing so, this study represents an initial look at how advertisers can strategically promote conversational AI agents to consumers. The present study employed a 2 (AI agent sincerity condition vs. control condition) x 2 (AI agent benefits appeal: social benefits condition vs. utilitarian benefits condition) between-subjects online experimental design with a sample of 256 U.S. adults. Study results suggest that promoting social benefits of AI agents and emphasizing a sincere personality influence consumer social presence perceptions in human-AI interaction. Consumers' perceived social presence leads to more favorable attitudes toward the advertisement and the use of the AI agent. In contrast, without the mediating role of social presence, accentuating the utilitarian benefits of AI agents in the advertisement is more effective than highlighting social advantages in influencing consumers' positive attitudes. The current study contributes to the literature on consumer AI interactions, social presence, parasocial interactions, and brand personalities.