\n
Over the last few years, the rapid expansion in the way that artificial intelligence has been used has opened a world of creative possibilities. In the area of advertising, recent legislation is attempting to play catch-up, presenting advertisers with legal limitations on the use of the latest technologies.<\/p>\n
Understanding the legal framework, safeguards and protocols that govern the implementation of AI in advertising is crucial to ensuring general regulatory compliance. As the leading states in this field, New York and California have assumed instrumental roles in passing laws that will transform how AI is applied. California Senate Bill 1050, signed into law on September 16, 2026, will go into effect on January 1, 2027. It mandates that advertisers disclose whenever a \u201csynthetic performer\u201d is used. \u00a0<\/p>\n
The law defines a synthetic performer as a human-like digital figure, voice, or representation created in whole or in part using generative AI. This applies specifically to realistic but nonexistent human likenesses, but not to stylized fictional characters.<\/p>\n
If an advertisement contains a synthetic performer, it must present a clear and conspicuous disclosure that either informs the viewer that a synthetic performer is being featured or that no human performers are depicted. While these requirements are intended to promote clearer communication between advertisers and viewers, the legislation provides for several specific exceptions. Excluded are certain uses of AI for expressive works such as movies, television shows, video games or theatrical productions, provided that the synthetic performer’s appearance or voice in the advertisement is identical to its actual use within the underlying creative piece. Also excluded are advertisements in which AI is used solely for language translation.<\/p>\n
Broadcasters and digital advertising mediums are prohibited from continuing to distribute or air an advertisement but only if a court finds it violates the disclosure law and the media provider is formally served with the court order.<\/p>\n
Meanwhile, the New York Synthetic Performer Disclosure Law took effect on June 9, 2026, the first-in-the-nation rule of its kind. Codified at section 396-b of New York\u2019s General Business Law, the statute also requires advertisers to include a clear, conspicuous disclosure whenever a commercial advertisement features an AI-generated, non-identifiable human synthetic performer. While it shares identical exemptions with California for language translation and expressive cinematic works, New York’s version explicitly exempts audio-only advertisements from disclosure. Violations do not carry a private right of action but can be enforced by state authorities through civil penalties.<\/p>\n
While state regulation has taken a forward stance, the federal government, in December 2025 issued an executive order calling for the Attorney General to establish an AI Litigation Task Force that could potentially challenge state AI laws. Rather than filling critical regulatory gaps, this task force is designed to combat robust state AI laws that fail to conform to Washington’s business-friendly, \u201cminimally burdensome national policy framework.\u201d \u00a0<\/p>\n
In looking ahead, advertisers should not only ensure that their content is created with the proper disclosures but should also stay up to date on the latest regulations governing the use of AI. Compliance policies will minimize the possibilities of regulatory penalties and loss of credibility. Advertising brands that see the value in adopting compliance policies early on will have a distinct advantage in maximizing AI\u2019s potential.<\/p>\n
TAKEAWAY:<\/strong> With the landscape of artificial intelligence rapidly evolving, advertisers will need to look towards recent state regulatory developments, particularly California\u2019s and New York\u2019s, to assess potential legal pitfalls for AI-aided advertising.<\/p>\nLena Whittaker contributed to this article<\/em><\/strong><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"Over the last few years, the rapid expansion in the way that artificial intelligence has been used has opened a world of creative possibilities. In the area of advertising, recent legislation is attempting to play catch-up, presenting advertisers with legal limitations on the use of the latest technologies. Understanding the legal framework, safeguards and protocols […]<\/p>\n","protected":false},"author":1,"featured_media":7072038,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12023],"tags":[8397,531,18019,88762,17817],"dealstore":[],"offerexpiration":[],"class_list":["post-7074673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","tag-advertising","tag-california","tag-disclosure","tag-enacts","tag-requirement"],"yoast_head":"\n
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