Australians have been warned that using AI-generated images to sell food could backfire, with a marketing expert cautioning small businesses that the short-term strategy could leave customers feeling ripped off.
As AI continues to transform how Aussies work and live, businesses are finding new ways to save time and money with tools at their fingertips.
Australian National University marketing expert Dr Andrew Hughes has warned that doing so could damage a business’s reputation if the food customers receive fails to match what is shown on shopfront posters.
“If they’re lying about the quality of the image of their food, what else are they lying about?” Hughes told Yahoo News Australia.
The risk of leaving customers feeling ripped off
Hughes explained that using AI-generated images in food advertising could create unrealistic visuals that don’t reflect what a business sells on the plate.
He said appearance, colours, size or portions of a dish can exaggerate the product.
“The gap between what you expect and what you get is going to be quite large and very negative. You’re going to feel ripped off, basically,” he said.
“My advice is just make it authentic.
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“I understand the need of people to do it, and it’s been done for a long time; you look at how fast food hamburgers are advertised compared to what the reality is. It’s always different, right?
“AI is a little different, I think you have to be really careful with how you use it as it gives a false impression.”

An AI-generated promotional poster in Melbourne showcases food, raising questions about how accurately businesses represent their products. Source: Yahoo News Australia/Reddit-GrenouilleDesBois
Hughes said that the images could make a business appear “lazy, unprofessional” and raise doubts about the experience customers could expect.
The AI shortcut that could cost businesses customers
The marketing lecturer warned that businesses chasing short-term gains through AI-generated images risk losing customers in the long run if they damage trust, with disappointed diners potentially spreading negative word of mouth.
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He said businesses needed to be particularly careful when using images to convince new customers to visit, because those pictures helped shape expectations before they walked through the door.
“The important point is to tell people you’re using it in the first place,” Hughes said.
“If you’re using AI to promote your brand more externally, to entice them to come in through the front doors, that is where you need to be very careful.
“Because people will base their expectations on why they’re coming in the first place on what they’ve seen.”
Yahoo News has reached out to several venues about their use of AI.
Why small businesses are turning to AI
Despite the risks, Hughes said he understood the appeal of AI, particularly for small businesses looking to cut costs amid ongoing cost-of-living pressures.
“I can understand why people do it,” he said.
“AI has really brought down the cost of marketing and advertising substantially.
“You don’t have to pay for a professional photographer… you’ve got your own advertising marketing team through AI, which is substantially less cost.”

AI-generated food imagery offers businesses a cheap way to attract customers, but experts warn it could backfire if expectations aren’t met. Source: Supplied/Reddit-wgerie
Hughes noted an important difference between using AI to improve genuine images and generating food images from scratch.
“If you have your own content and you ask AI to clean that up, that’s different compared to asking AI to generate an image for you,” he added.
The cost-saving appeal of AI food images
Meanwhile, National President of Restaurant & Catering Australia, John Hart, said rising costs had made AI an understandable option for Australian businesses to tap into.
“Small hospitality operators are under enormous cost pressure, and professional photography and marketing support is a cost many simply can’t justify,” he told Yahoo News Australia.
“AI tools are cheap, fast and accessible, so it’s understandable that operators look to them as a way to keep their marketing fresh without adding to overheads.
“Customers are buying an experience, and showing real people in the real venue builds trust and appeal in a way that a perfect plate of food, AI-generated or otherwise, rarely does.”

AI tools can offer hospitality businesses a cheaper way to create promotional material amid rising operating costs. Source: Getty Images
(Asanka Ratnayake via Getty Images)
Hart added that the key consideration was whether promotional images accurately represented what customers would receive.
“The test is whether the image fairly represents what the customer will receive,” he said.
He urged businesses to ensure their promotional images matched the food they served.
“Make sure any image fairly reflects the dish you actually serve – portion, presentation and ingredients.
“If in doubt, ask: would a customer feel misled if they compared the image with what arrives at the table?”
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