New York Law Mandates Disclosure for AI-Generated Performers in Ads

Advertisements in New York using artificial intelligence to create performers must now disclose the use of a “synthetic performer,” as per a new state law. Signed in December by Governor Kathy Hochul, the law took effect this week. Hochul’s office describes it as the nation’s first law aiming to increase transparency, noting the growing prevalence of AI-generated figures across media and digital ads.

State law defines synthetic performers as “digitally-created media that appear as a real person.” This requirement applies across all advertising mediums. Governor Hochul, a Democrat, emphasized in a statement that New York is taking proactive measures to regulate AI, ensuring consumer protection and supporting creative workers. Ads failing to disclose AI usage will incur a $1,000 penalty for an initial violation, increasing to $5,000 for subsequent violations.

The law includes exceptions for advertisements related to films, television, streaming, video games, and other media featuring synthetic performers throughout their content. It also exempts audio ads and cases where AI is employed solely for language translation.

Opposition from advertising bodies, such as the American Association of Advertising Agencies (4As), arose during the bill’s legislative process, arguing that the law injects compliance uncertainty and burdens brands and agencies. The New York State Broadcasters Association expressed concerns over the broad definition of synthetic performers, despite some carve-outs introduced through amendments.

SAG-AFTRA, the actors’ union, emerged as a key proponent of the law. The union recently approved a new contract ensuring further protection from synthetic performers.

New York’s legislation joins several state efforts to bolster job security for humans and address AI’s potential privacy and safety risks. Other states have enacted laws to prevent deepfakes, restrict personal data collection, and enforce corporate transparency.

Following the signing of New York’s law, former President Donald Trump issued an executive order discouraging state-level AI regulation. Advocates for the order fear inconsistent regulations could hinder AI company growth and give China an edge in AI advancement. Critics argue it permits minimal oversight of tech companies.