Consumers Claim They Recognize Fake Images, but Most Struggle to Tell the Difference

This article was contributed by Craig McDonogh, Head of Marketing for Imgix – a specialist image delivery and optimisation service for marketers, designers and developers.

 

Consumers are cynical of AI-generated images. They say they look fake. They worry they blur the line between real and artificial. They fear AI imagery is replacing human creativity. And, the distrust runs deep — 90% of consumers want to know whether an image has been created with AI.

But the reality is that AI-generated images are very effective because most people can’t tell the difference – and people don’t like to be fooled.

AI-generated images are ubiquitous – brands are using them in marketing, advertising and e-commerce. To be transparent, most of the images on our own website are, or include, AI-generated content. (We’ll let you know which cake image is real and which one is AI-generated at the end of this post).

But the bottom line is that AI-generated images save money compared to traditional photography and they perform just as well — sometimes even better. This paradox raises an important question: If consumers object to AI-generated images, why do they still work?

Despite AI imagery’s widespread use, many consumers remain cautious. Their concerns range from visual authenticity to trust and fairness — each of which plays a role in shaping public perception.

Too polished or too flawed

Critics argue that AI-generated images lack the imperfections of real-world photography. They can feel too polished, too artificial — an uncanny valley effect that makes them unsettling.

Interestingly, others find AI-generated images suspicious for the opposite reason: they contain subtle but glaring flaws. AI models still sometimes struggle with anatomical accuracy, occasionally producing people with extra fingers, glitchy or duplicated features, or limbs that bend in unnatural ways. These inconsistencies reinforce the perception that AI-generated visuals are less trustworthy than real photographs.

The more realistic AI imagery becomes, the harder it is to separate fact from fiction. More than 75% of consumers (that’s three out of four people) say they often can’t tell whether an image is real or AI-generated. This uncertainty fuels distrust, making some wary of brands that use AI without transparency.

Too unfair

AI imagery raises ethical concerns. Fashion brands have been criticized for using AI-generated models instead of hiring real people and creatives fear their work is being devalued or outright replaced. Even when AI tools rely on human-created content for training, the process remains opaque, leaving many artists wondering where they fit in an AI-powered future.

These objections are real, but here’s the problem: AI-generated images are already indistinguishable from traditional photography for most people and that’s only becoming truer over time.

It should be noted that image manipulation isn’t new – photography has long relied on tricks and hacks to enhance appeal, from food styling with inedible materials to fashion shoots using strategic lighting and retouching. AI-generated imagery is just the latest evolution of these techniques, shaping perception in much the same way.

Too effective

Even though many consumers express skepticism about AI imagery, their ability to recognize it and their actual response to it tells a different story. The reality is that most people can’t tell the difference – which is why it’s so effective.

For all the concern about AI imagery looking fake, it turns out that most people can’t reliably identify it. A study published in the Proceedings of the National Academy of Sciences found that participants correctly identified AI-generated faces only 48.2% of the time, which are worse odds than flipping a coin.

And AI quality continues to get even better. The gap between perception and reality is widening. AI-generated people, landscapes, and products are being mistaken for traditional photography at increasing rates.

And here’s a surprising twist: AI-generated faces aren’t just believable, they’re often rated as more trustworthy than real ones. So, even when consumers say they distrust AI imagery, their behavior reveals its effectiveness.

Cost and efficiency drive AI adoption

For brands, the decision to use AI imagery isn’t just about performance, it’s about economics. Traditional photoshoots are expensive. Even stock photography can be costly and limited in variety. AI-generated visuals, by contrast, can be tailored on demand, offering a flexible and scalable alternative.

That flexibility allows brands to generate custom visuals without the logistical overhead of location scouting, model hires, and post-production edits. AI tools can instantly adjust lighting, composition, and style to match brand aesthetics, which even stock libraries struggle to provide.

It’s no surprise, then, that more businesses are turning to AI-generated imagery. When an approach saves time, cuts costs, and out performs the alternative, brands will embrace it, especially when AI-generated images can actually respond to the viewer. It’s not just about saving money – it’s about delivering more relevant, personalized content and 76% of consumers said receiving personalized communications makes them more likely to consider purchasing from brands.

The hybrid approach may be the right move

AI-generated imagery is more suitable for some industries than others. In sectors like fashion advertising and conceptual design, AI can create compelling visuals that enhance creative storytelling. But in areas like e-commerce and real estate, where consumers expect to see exactly what they’re purchasing, AI-generated photos can face greater scrutiny. The key is knowing when to use AI as a tool for enhancement rather than a replacement for authenticity.

In addition, not all AI-generated images are created from scratch. Increasingly, brands are using AI to enhance, rather than replace, real photography. And sometimes AI tools refine resolution, remove unwanted elements, adjust color balance, and generate variations of existing images. Merchants can also use AI tools to turn authentic images into videos to help prospective buyers better visualize a product.

This hybrid approach offers the best of both worlds: the authenticity of real photography with the efficiency of AI-driven optimization.  Incorporating AI thoughtfully rather than trying to deceive audiences will be key to navigating the evolving landscape of digital imagery.

How brands should use AI-generated images

Consumers may object to AI-generated images, but the effectiveness of those images tells a different story. They are increasingly indistinguishable from traditional photography. They drive engagement. They save brands money.

For businesses, the challenge isn’t whether to use AI — it’s how to use it in ways that align with audience expectations. The brands that succeed will be those that find the right balance between AI-generated and human-created content, leveraging AI’s efficiencies while maintaining trust and authenticity.

** P.S. Is it fake? The cake on the right at the top of this post is the one that is AI-generated. (See the fork prongs.)

 

About Craig McDonogh

Craig is an accomplished marketing executive with more than 30 years experience in all aspects of B2B software marketing.  His background spans US, APAC, and European markets in companies including ServiceNow, BMC, and Perspectium. Craig is recognized as a SaaS marketing leader and has been a featured speaker at events around the world.

You can connect with Craig via his LinkedIn profile.

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