New York Leads The Way With AI Ad Transparency Law

Artificial intelligence is getting so good that New York State is making it mandatory for advertisers to tell you when the people you're looking at aren't actually real.

A first-in-the-nation law signed by Governor Kathy Hochul officially took effect this week, requiring advertisements that use AI-generated "synthetic performers" to clearly disclose that fact to consumers.

Under the law, a synthetic performer is digitally created media that appears to be a real person. The requirement applies to advertisements across nearly all forms of media, including social media, online ads, television commercials and other promotional content.

The move comes as AI-generated people have become increasingly common in advertising. Companies can now create realistic-looking spokespeople, influencers and actors using artificial intelligence, sometimes making it difficult for viewers to know whether the person they're seeing actually exists.

"In New York, we are setting the rules of the road instead of letting AI run the show," Hochul said in announcing the law's implementation. "Requiring simple, honest disclosure when an ad uses synthetic performers protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation."

The law requires advertisers to make a clear disclosure whenever synthetic performers are used. Businesses that fail to comply can face fines of $1,000 for a first violation and $5,000 for additional violations.

Supporters say the law is designed to help consumers distinguish between real people and AI-generated content at a time when deepfakes and other forms of manipulated media are becoming more sophisticated.

The law was strongly backed by the actors' union SAG-AFTRA, which has been pushing for protections as artificial intelligence becomes more common throughout the entertainment industry. Union leaders argue that AI-generated performers could eventually replace human actors and models in some advertising campaigns.

Opposition to the New York AI Law

Not everyone supported the measure. Advertising industry groups previously argued the law could create additional compliance burdens and potentially slow innovation in the rapidly growing AI sector.

It's also important to note: there are some exceptions. The disclosure requirement does not apply to movies, television shows, streaming content or video games that feature AI-generated characters as part of the work itself. It also excludes advertisements where AI is used solely for language translation.

The new law is part of a broader effort by New York to regulate emerging technologies. State officials say the goal is simple: if the person trying to sell you something isn't real, you deserve to know it.