Advertising has undergone significant transformation due to technological advancement. While traditional advertising methods such as television, print media, radio, and outdoor displays have long dominated the industry, artificial intelligence-based advertising has emerged as a powerful digital alternative. This study comparatively examines consumer perceptions, preferences, trust levels, privacy concerns, and perceived effectiveness of traditional and artificial intelligence-based advertising. Primary data were collected through a structured questionnaire consisting of twenty questions and distributed online to more than one hundred forty participants across different age groups and genders. Quantitative data were analyzed using percentage analysis, and qualitative responses were examined using thematic analysis. The findings indicate that artificial intelligence-based advertising is perceived as more personalized, relevant, and efficient, whereas traditional advertising is considered more trustworthy and emotionally appealing. The study also reveals that privacy concerns significantly influence consumer attitudes toward artificial intelligence based advertisements. The results suggest that integrating personalization with credibility may offer the most effective advertising strategy for contemporary consumers.