The Role of AI in Advertising Regulation
Over the past five years, AI and machine learning have advanced significantly, impacting many industries—including advertising. While some see AI as a technology that should grow without restrictions, others emphasize the need for regulations to protect consumer rights. Around the globe, stakeholders are closely watching AI developments, as its applications spread across sectors. Advertising regulators use AI to improve oversight, but with that comes a responsibility to ensure it’s applied fairly and transparently.
To Disclose or Not to Disclose?
Current advertising codes like the CAP and BCAP don’t have AI-specific rules, but existing standards still apply regardless of how content is created or targeted. Marketers need to make sure AI use doesn’t clash with these rules. In the UK, there’s no general legal obligation to disclose AI use in ads. However, different countries and platforms have their own disclosure requirements, often encouraging transparency and responsible AI use in advertising.
Global Developments in AI Regulation
In Europe, the AI Act became law in August 2023 and is being implemented gradually. It categorizes AI applications based on risk, from low to high, with corresponding transparency requirements. Even though the UK is no longer part of the EU, its advertising regulations are influenced by such global legislation, especially for brands operating internationally.
Industry groups like the Incorporated Society of British Advertisers and the Institute of Practitioners in Advertising have issued guidelines for generative AI in ads. One key principle advises that if AI is a prominent part of an ad and not obvious to consumers, transparency should be ensured.
Disclosure: When and Why It Matters
Before deciding to disclose AI use in advertising, ask two questions:
- Could the audience be misled if AI use isn’t disclosed? What specific harm might the disclosure prevent?
- If disclosure is necessary, does it clarify or contradict the ad’s message?
It’s easy to treat AI disclosure as a checkbox, but it should be about addressing real risks of misleading consumers.
Key Considerations for Disclosure
Advertisers have long enhanced ads through editing techniques without always disclosing those changes, and AI is often used similarly. For instance, AI can subtly improve visuals by removing distractions or adjusting facial expressions—tasks traditionally done by photographers or animators but now done faster and cheaper. From the consumer’s perspective, these changes are usually not materially different.
However, disclosure alone won’t fix a misleading claim. Ads that falsely represent a product’s effects—for example, using AI-generated images that exaggerate cosmetic results—cannot avoid being misleading just by stating AI was involved. On the other hand, clear disclosure can help when AI content is used for comedic effect or when an influencer is AI-generated, preventing false impressions.
Every case depends on the specific content, context, and audience response.
Future of Regulation and Policy Evolution
AI challenges some norms but hasn’t yet created unique problems that require new advertising rules. While mandatory AI labeling in ads isn’t currently standard, regulators remain open to adapting if needed. Public policies around AI will continue to evolve and may influence advertising regulation.
For now, existing advertising rules apply whether AI is involved or not. Marketers should be cautious with deepfakes and other potentially misleading AI-generated content. If you need advice on non-broadcast ads, specialist teams are available to assist with compliance questions.
Your membership also unlocks:
