This chapter describes human perceptions toward artificial intelligence (AI) within cultural and creative domains, focusing on generative AI (GAI) in art and music. Through a review of current literature, the chapter identifies prominent cognitive biases influencing how audiences evaluate AI-generated artworks. For example, despite recognizing emotional resonance in AI-produced music, visual arts, and interactive installations, audiences consistently rate these creations less favorably once informed of AI authorship, a phenomenon known as algorithm aversion. The discussion further highlights factors contributing to such biases, including cultural differences, anthropomorphism, perceived effort, and narrative. Furthermore, the chapter critically explores the “flood of artificial creativity” driven by the rapid global adoption of GAI tools, scalable business models, and autonomous AI agents producing immense volumes of content. This inundation of AI made content raises profound questions about cultural saturation, loss of aura, and the potential impact on artistic authenticity. Finally, while addressing future challenges, the chapter discusses how deepfakes are reshaping perceptual boundaries and potentially leading to perceptual desensitization. By examining scenarios where AI-generated content becomes indistinguishable from human-created art, the chapter highlights significant implications for trust, artistic value, and cultural memory.