Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334633 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12277
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
We test whether AI-generated news images affect outlet demand and trust. In a pre-registered experiment with 2,870 UK adults, the same article was paired with a wire-service photo (with/without credit) or a matched AI image (with/without label). Average newsletter demand changes little. Ex-post photo origin recollection is poor, and many believe even the real photo is synthetic. Beliefs drive behavior: thinking the image is AI cuts demand and perceived outlet quality by about 10 p.p., even when the photo is authentic; believing it is real has the opposite effect. Labels modestly reduce penalties but do little to correct mistaken attributions.
Subjects: 
AI
demand for news
trust
online experiment
JEL: 
C81
C93
D83
Document Type: 
Working Paper
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