Generative AI is transforming how brands create marketing communications, yet consumer responses to AI-generated content remain complex and often contradictory. This chapter presents existing research examining how consumers cognitively and emotionally process and respond to AI-generated marketing content. The literature reveals mixed consumer perceptions: AI content can enhance credibility, engagement, and purchase intent through creative personalization but often fails when authenticity or emotional resonance are required. Building on these insights, this chapter explores AI’s role in persuasion, highlighting its strengths in delivering logical appeals, its challenges with emotional messaging, and its ongoing evolution toward more emotionally attuned communication. This work also highlights how disclosure practices like revealing AI authorship can either foster trust or provoke skepticism, and examines the role of evolving regulatory frameworks in shaping transparency standards. By integrating these interconnected elements of consumer psychology, persuasion mechanisms, and disclosure effects, this chapter provides marketing practitioners and researchers with a comprehensive understanding of how AI is reshaping brand-consumer communication in the digital age.