New York Mandates Disclosure for Ads Using Synthetic Performers

Advertisements in New York featuring artificial intelligence-generated individuals as substitutes for real actors must now disclose this usage or face legal repercussions. A law signed by Governor Kathy Hochul in December has taken effect, aiming to improve transparency. The governor’s office calls it a pioneering regulation in the U.S., addressing the rise of AI-generated performers in media, including digital ads and social platforms.

Synthetic performers are defined by the state as “digitally-created media that appear as a real person.” This law affects advertisements across various platforms.

“In New York, we are setting the rules of the road instead of letting AI run the show,” Governor Hochul stated. The law mandates “simple, honest disclosure,” which she says safeguards consumers, respects the creative industry, and ensures New York leads in responsible innovation. Failing to clearly disclose the use of synthetic performers will incur penalties of $1,000 for the first violation and $5,000 for subsequent ones.

Exceptions exist for specific categories like movies, TV shows, streaming content, video games, and other projects where synthetic performers constitute the entire work. The law also does not cover audio ads or those where AI only assists with language translation. During legislative discussions, some advertising groups, such as the American Association of Advertising Agencies, opposed the law. They warned about the potential disruption to the advertising process and limitations to creative and technological advancements.

While some groups raised concerns, certain amendments provided relief by specifying exceptions, yet worries remain about the broad definition of synthetic performers. SAG-AFTRA, an actors’ union, strongly supported the law, seeing it as a step to protect against the misuse of synthetic performers. This legislation is one among several in the U.S. focused on preserving human job security and addressing privacy and safety issues posed by AI.

Following the enactment of this law, former President Donald Trump signed a contrasting executive order discouraging state-level AI regulation. The administration feared that disparate state regulations might hinder AI industry growth and help other countries, such as China, become competitive in the global AI landscape. Critics argue the order could allow tech companies excessive freedom without adequate oversight.