New York Mandates Transparency for AI-Generated Ad Content

Effective immediately, New York state law requires any advertisements using artificial intelligence-generated people instead of actors to clearly label them as employing “synthetic performers.” Governor Kathy Hochul signed this groundbreaking law in December, and it is now active.

The new regulation is heralded as a pioneering move in the nation, aimed at increasing transparency in digital advertising. Synthetic performers are defined by the law as digital media creations that mimic real people. This applies across all advertising mediums, including social media and digital platforms.

In New York, we are setting the rules of the road instead of letting AI run the show,

Governor Hochul explained. She emphasized that the required “simple, honest disclosure” is crucial for protecting consumers, respecting creative professionals, and keeping New York at the forefront of ethical innovation.

Advertisements failing to “conspicuously disclose” the use of synthetic performers will incur penalties. A first violation costs $1,000, with subsequent infractions reaching $5,000.

The law includes specific exemptions. It does not apply to ads for films, TV, streaming content, video games, or projects using synthetic performers throughout the work. Audio ads and AI-powered language translations are also exempt.

While traversing the state legislature, the law faced opposition from the American Association of Advertising Agencies and other groups. They expressed concerns about the law’s potential to complicate the advertising process and hinder creative and technological progress. The New York State Broadcasters Association appreciated certain exemptions but remained wary of the broad definition of synthetic performers.

SAG-AFTRA, the actors’ union, strongly supported the law after finalizing a contract enhancing protections against synthetic performers.

New York’s regulation is part of a wider national trend. Many states aim to protect human job security and address privacy and safety risks associated with AI. Existing laws prohibit deepfakes in specific situations, limit personal data collection, and mandate company transparency.

After signing the synthetic performers law, President Donald Trump signed an executive order discouraging states from imposing AI regulations. The order stemmed from concerns about fragmented regulations hampering AI development and aiding China’s competitive efforts. Critics fear this could lead to minimal oversight for tech companies.