This research aimed to understand how individuals perceive AI-generated images versus human-captured images for advertising. An analysis was conducted across different demographics, including age, gender, and educational backgrounds, with 200 participants involved. Participants were asked to rate the realism of AI-generated images compared to human photographs and their suitability in advertising campaigns. Statistical analysis, using tools like SPSS and PowerBI, and independent samples t-test were employed to evaluate the ratings. The findings revealed that human-captured images were rated higher in terms of realism and overall metrics. However, there's an increasing acceptance of AI-generated content in advertising, suggesting advertisers should consider its use, especially in demographics more open to it.