New York Leads the Way in AI Advertising Transparency
In a groundbreaking move, New York has become the first state in the United States to mandate full disclosure when artificial intelligence (AI) is used in advertising. Governor Kathy Hochul recently signed two significant bills into law, aiming to create transparency in AI-generated advertisements and protect the digital rights of individuals, including deceased performers. These new policies mark a pivotal step in balancing innovation with ethical practices in the AI landscape.
What Do the New Laws Entail?
The legislation, consisting of bills S.8420-A/A.8887-B and S.8391/A.8882, implements two major protections:
- AI Disclosure in Advertising: Advertisers are now required to “conspicuously disclose” when synthetic AI actors or AI-generated images are used in marketing campaigns.
- Protection of Deceased Performers: These laws prohibit the use of a deceased performer’s digital likeness for profit without obtaining explicit consent from their estate.
“By signing these bills today, we are enacting common-sense laws that will ensure we are fully transparent when using images generated by artificial intelligence,” said Governor Hochul in a statement. This move underscores New York’s leadership in the entertainment and advertising industries, ensuring responsible AI use.
Why This Matters
AI is reshaping industries, from marketing to entertainment, but rapid innovation has sparked concerns over ethical use and unauthorized representation. The rise of deepfake technology and AI-generated content has brought about issues such as identity exploitation and consumer deception. New York’s new policies aim to address these risks by enforcing stricter regulations on AI use while ensuring transparency for consumers.
For advertisers, these laws serve as reminders to adopt ethical AI tools. For example, platforms like Adobe Sensei emphasize training AI models using ethical and licensed data, ensuring compliance with emerging regulations.
A National Showdown: Federal vs. State Regulations
While New York takes the lead, President Donald Trump’s recent executive order poses challenges to state laws like these. The order directs the Department of Justice to contest state-level AI regulations deemed “onerous” and warns that such states could risk losing federal funding, particularly for broadband infrastructure projects under the Broadband Equity Access and Deployment (BEAD) Program.
Trump’s aim is to establish a unified national framework for AI regulation, reducing what he calls “fragmented” state-by-state compliance. However, this federal-state tug-of-war may lead to significant legal battles over jurisdiction and authority in dictating AI regulations.
The Future of AI Advertising
The protections enabled by New York’s laws are the result of significant lobbying efforts, particularly by SAG-AFTRA, the union representing film and television actors. In the wake of its historic strike settlement in 2023, SAG-AFTRA has worked to enact similar policies nationwide, with legislation like the No Fakes Act at the federal level. This act aims to protect individuals’ voices and likenesses from unauthorized digital reproductions and secure fair compensation for AI usage.
“These laws represent a critical step in confronting the risks posed by unchecked AI use,” said Duncan Crabtree-Ireland, SAG-AFTRA’s National Executive Director.
How Advertisers Can Adapt
To stay compliant with these new laws, advertisers and brands must focus on transparency and ethical AI practices. Leveraging licensed tools and datasets, such as Adobe’s AI products or other authenticated AI platforms, ensures compliance and builds consumer trust.
Deepfake and AI replication technology might continue to circulate on loosely regulated platforms, but advertisers should align with reputable software solutions to navigate this rapidly evolving digital landscape responsibly.
Final Thoughts
New York’s AI disclosure laws set a precedent for responsible AI use in advertising while sparking a national conversation about transparency, ethics, and regulation in the digital age. Whether you’re a brand marketer or a consumer, these laws will impact how AI is integrated into future campaigns, underscoring the importance of trust and ethical innovation.
