A first-of-its-kind state law now requires advertisers to clearly label any promotional image or video featuring an AI-generated person. New York's synthetic performer disclosure law, signed by Gov. Kathy Hochul in December 2025, took effect this month and imposes escalating civil fines for noncompliance.
The law targets marketing campaigns that use digitally created performers instead of real actors or models. According to an Interactive Advertising Bureau report, 83% of advertising executives say their companies already use AI in the creative process this year - a 60% jump from 2024.
What the law requires
Any advertisement that features a synthetic performer - an AI-generated person whose image or voice is indistinguishable from a real human - must include a conspicuous notice that the individual is not real. Gov. Hochul framed the measure as a consumer protection and a defense of the creative workforce. "In New York, we are setting the rules of the road instead of letting AI run the show," she said. "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 statute does not prescribe specific wording, placement, or format for the disclosure. It says only that the notice must be "conspicuous" to consumers, leaving compliance teams to interpret what that means in a social media video, a display ad, or an influencer post.
Penalties and ambiguity
First-time violations carry a civil fine of up to $1,000. Each subsequent violation triggers a $5,000 penalty. Enforcement will likely depend on how the state attorney general's office interprets the term "conspicuous" - a point of legal uncertainty that advertising counsel and in-house teams are already examining. As the regulatory landscape around AI-generated content grows more fragmented, legal teams are turning to specialized resources - from compliance guides to AI for Legal Professionals - to interpret how laws like New York's will affect advertising and intellectual property practices.
Assemblymember Linda B. Rosenthal, a Manhattan Democrat who sponsored the bill, said consumers need the transparency. "The rise of deepfakes and AI-generated performers have made it more difficult than ever for consumers to decipher fact from fiction," she said. "The synthetic performer legislation will alert New Yorkers to the use of synthetic performers in advertisements, providing much-needed transparency to consumers and protections to artists."
Industry backing and adoption
The law drew support from SAG-AFTRA, the national performers union, which has pushed for stronger AI guardrails as deepfakes proliferate. Duncan Crabtree-Ireland, the union's national executive director and chief negotiator, called the new requirements a direct result of artists and lawmakers working together. "By mandating transparency and securing consent, New York has drawn a bright line that puts human creativity, integrity and trust first," he said.
No other state has adopted an identical rule, though several jurisdictions are considering similar advertising disclosure mandates. New York's approach gives advertisers a compliance framework but leaves critical details - what counts as conspicuous, what level of disclosure suffices - open to interpretation and future litigation.
Why this matters for legal professionals
For lawyers who advise brands, agencies, or platforms, the law signals a shift from voluntary AI ethics pledges to enforceable state-level obligations. The absence of precise disclosure standards means legal teams must craft defensible compliance positions now, before enforcement actions or class-action claims define the line. Reviewing all ad creative that uses generative AI for talent depictions - and documenting that review process - is an immediate step that can reduce exposure to the $5,000 repeat-violation penalty.
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