Artificial intelligence (AI) in marketing has gained significant interest and adoption recently, which makes it an important research topic. The purpose of the study was to explore how the integration of AI can be utilized efficiently in marketing creation, the applicability in its current state, and consumers perception of marketing material generated by AI. The study was based on a multi-method approach consisting of qualitive interviews with advertisement agencies, two experiments with AI, focus groups to gather consumer perceptions and attitudes, and a content analysis to evaluate AI’s ability to create marketing strategies compared to professional agencies. The study further incorporated theoretical frameworks from previous research to get a more comprehensive perspective.  The findings provide insights into how the AI models ChatGPT and Dall-E can support marketers in both the strategic and creative process. Furthermore, the study also identifies a consumer skepticism that negatively affects their perceptions towards AI-generated material, and that there are significant ethical considerations that must be addressed when using AI in marketing. Organizations and marketers can use these findings to leverage AI to refine their marketing strategies and creative process.