New York Requires Clear Labels for AI-Generated Actors in Ads
New York's first-in-the-nation law requiring advertisements to disclose the use of synthetic performers took effect Tuesday. Any ad featuring AI-generated people must now include a conspicuous label stating it used a "synthetic performer," or face penalties starting at $1,000.
Gov. Kathy Hochul signed the law in December. Her office framed it as a transparency measure at a time when AI-generated performers are appearing across social media and digital advertising.
What the Law Covers
The law defines synthetic performers as "digitally-created media that appear as a real person." It applies to advertisements in any medium-digital, broadcast, print, or otherwise.
The penalties are clear: $1,000 for a first violation, $5,000 for subsequent ones. Advertisers must make the disclosure obvious to consumers.
Several categories are exempt. Ads for movies, television shows, streaming content, and video games that feature synthetic performers throughout don't require disclosure. Audio advertisements and ads using AI solely for language translation are also excluded.
Industry Opposition and Support
The American Association of Advertising Agencies opposed the law before it passed, warning it would "inject compliance uncertainty into the advertising process" and burden brands advertising in New York.
The New York State Broadcasters Association expressed concern about the broad definition of synthetic performers, though it acknowledged relief at carve-outs added during the legislative process. The organization said local broadcast stations are prepared to comply.
SAG-AFTRA, the actors' union, was the law's primary supporter. The union recently negotiated protections against synthetic performers in a new contract with studios and streamers.
Broader AI Regulation Trend
New York joins several states passing laws to address AI's labor and safety implications. Existing state laws bar deepfakes in specific contexts, limit collection of certain personal information, and require greater company transparency.
Shortly after Hochul signed this law in December, President Donald Trump signed an executive order pressuring states against regulating AI. The administration cited concerns that a patchwork of state rules could slow AI companies' growth and disadvantage the U.S. against China.
Critics argue the executive order will allow tech companies to operate with minimal oversight. The tension between state regulation and federal pressure on AI governance will likely shape compliance requirements for advertisers and legal teams in coming months.
Legal professionals working with advertising clients should review contracts and compliance procedures now. AI for Legal professionals can stay current on regulatory developments affecting their practice.
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