AI Labels Hurt E‑commerce Product Perception, Study Finds
An experimental study by Hochschule Hannover finds that labeling product photos as "AI-generated" reduces product attitudes and purchase intent, even when images are real. The experiment of 163 participants showed no intrinsic disadvantage for AI-generated visuals themselves and in some cases a slight advantage in purchase intent, but the presence of a generic "AI-generated" label lowered both product evaluation and conversion likelihood regardless of actual image origin. The findings arrive amid new transparency obligations under Article 50 of the EU AI Act (effective 2026-08-02) and growing industry use of generative AI — exemplified by About You’s July 2026 launch of Scayle Studios. The article recommends hybrid photo strategies, clearer context-specific labels, and systematic A/B testing of label variants to balance efficiency gains and customer trust.
- •About You introduced an AI-based photo studio called Scayle Studios in July 2026 and reported per-item production costs falling from €70–80 to about €1 (company claim).
- •About You reported a 9.2% higher gross merchandise value and a 5.1% higher add-to-basket rate for AI-produced images compared with classic photos (company claim).
- •Article 50 of the EU AI Act introduced transparency and labeling obligations for certain AI-generated or AI-manipulated content; the regulation took effect on 2026-08-02.