Abstract
Generative artificial intelligence (GenAI) is reshaping how creative work is produced, raising new questions about authenticity, originality, and human effort in entrepreneurial settings. We examine the consequences of mandated AI disclosure in crowdfunding, leveraging Kickstarter’s 2023 platform-wide policy and a dataset of more than 63,000 projects launched between 2022 and 2024. Across multiple specifications, AI disclosure significantly reduces the likelihood of campaign success. Additional analyses show that this penalty operates primarily through reduced backer participation rather than changes in creators’ goal-setting behavior. Moreover, the disclosure penalty is weaker when campaign descriptions are more subjective and easier to read, but stronger in technology projects where authenticity and human ingenuity are especially valued. Our study introduces AI disclosure as a novel signal in crowdfunding, extends research on algorithm aversion to entrepreneurial contexts, and informs platform design and policy debates on the unintended consequences of AI transparency.
Recommended Citation
Singhal, Sonika; Kim, Yeongin; and Yoon, Victoria, "Will Your AI Turn Backers Away? Evidence from Kickstarter’s AI Disclosure Policy" (2025). Proceedings of the 2025 Pre-ICIS SIGDSA Symposium. 42.
https://aisel.aisnet.org/sigdsa2025/42