Blab AI
New York Enforces First-In-Nation Law Requiring AI-Generated Performers in Ads to Be Labeled
On Tuesday, New York became the first U.S. state to enforce a law that requires any advertisement featuring a person created with artificial intelligence to identify that person as a “synthetic performer.” The regulation, signed into law by Governor Kathy Hochul in December, takes effect immediately and imposes monetary penalties on advertisers that fail to disclose the use of synthetic performers.
The law defines a synthetic performer as “digitally‑created media that appear as a real person.” It applies to all advertising media, including television, radio, print, online, and social‑media ads. Advertisers who do not conspicuously disclose the use of a synthetic performer face a $1,000 fine for a first violation and $5,000 for subsequent violations. The law also contains carve‑outs: it does not apply to ads for movies, television shows, streaming content, video games, or other works that feature synthetic performers throughout the entire work. Audio‑only advertisements and ads that use AI solely for language translation are also exempt.
Governor Hochul described the measure as a “first‑in‑the‑nation law” that will “boost transparency at a time when AI‑generated performers are popping up across all forms of media.” She said the disclosure requirement “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation.”
The legislation followed a period of debate in the New York State Legislature. The American Association of Advertising Agencies (4As) and other advertising groups issued statements opposing the law, arguing that it would create “compliance uncertainty” and burden brands that advertise in the state. The 4As said the rule would “undermine creative and technological innovation.” The New York State Broadcasters Association expressed relief at the carve‑outs but remained concerned about the broad definition of a synthetic performer. Its president, David Donovan, told the Associated Press that local broadcast stations were ready to comply.
SAG‑AFTRA, the actors’ union, was a key supporter of the law. The union recently ratified a new contract with studios and streamers that includes protections against the use of synthetic performers. The contract and the state law both aim to safeguard human actors from being replaced by AI‑generated likenesses.
The law is part of a growing trend of state‑level AI regulations. Several other states have enacted or proposed laws that restrict deepfakes, limit the collection of personal data, or require transparency from AI companies. New York’s synthetic‑performer disclosure rule is the first of its kind to target advertising.
The federal landscape has been less supportive. Shortly after Governor Hochul signed the law, President Donald Trump signed an executive order that urged states not to regulate AI, citing concerns that a patchwork of state rules could hinder AI companies’ growth and allow China to catch up in the AI race. Critics of the order argue that it would let tech companies operate with little oversight.
The new law is expected to affect a wide range of advertisers, from large multinational brands to small local businesses that use AI‑generated imagery for marketing. Companies will need to review existing ad content and, if necessary, add clear labels such as “synthetic performer” or “AI‑generated.” Failure to do so could result in the penalties outlined in the statute.
Industry observers note that the law may prompt advertisers to adopt new compliance workflows and could influence how AI‑generated media is produced and used in marketing campaigns. The requirement for conspicuous disclosure is intended to inform consumers about the nature of the content they see, thereby increasing transparency.
As the law takes effect, state regulators will begin monitoring advertising content. Advertisers who rely on synthetic performers will need to ensure that their creative teams incorporate the required labeling. The law also signals that New York is positioning itself as a leader in responsible AI policy, potentially influencing other states to consider similar regulations.
In the coming months, it remains to be seen how quickly advertisers will adapt and whether the penalties will be enforced. The law’s implementation will likely be monitored by both state officials and industry groups, and it may set a precedent for future AI‑related advertising regulations across the United States.
The law defines a synthetic performer as “digitally‑created media that appear as a real person.” It applies to all advertising media, including television, radio, print, online, and social‑media ads. Advertisers who do not conspicuously disclose the use of a synthetic performer face a $1,000 fine for a first violation and $5,000 for subsequent violations. The law also contains carve‑outs: it does not apply to ads for movies, television shows, streaming content, video games, or other works that feature synthetic performers throughout the entire work. Audio‑only advertisements and ads that use AI solely for language translation are also exempt.
Governor Hochul described the measure as a “first‑in‑the‑nation law” that will “boost transparency at a time when AI‑generated performers are popping up across all forms of media.” She said the disclosure requirement “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation.”
The legislation followed a period of debate in the New York State Legislature. The American Association of Advertising Agencies (4As) and other advertising groups issued statements opposing the law, arguing that it would create “compliance uncertainty” and burden brands that advertise in the state. The 4As said the rule would “undermine creative and technological innovation.” The New York State Broadcasters Association expressed relief at the carve‑outs but remained concerned about the broad definition of a synthetic performer. Its president, David Donovan, told the Associated Press that local broadcast stations were ready to comply.
SAG‑AFTRA, the actors’ union, was a key supporter of the law. The union recently ratified a new contract with studios and streamers that includes protections against the use of synthetic performers. The contract and the state law both aim to safeguard human actors from being replaced by AI‑generated likenesses.
The law is part of a growing trend of state‑level AI regulations. Several other states have enacted or proposed laws that restrict deepfakes, limit the collection of personal data, or require transparency from AI companies. New York’s synthetic‑performer disclosure rule is the first of its kind to target advertising.
The federal landscape has been less supportive. Shortly after Governor Hochul signed the law, President Donald Trump signed an executive order that urged states not to regulate AI, citing concerns that a patchwork of state rules could hinder AI companies’ growth and allow China to catch up in the AI race. Critics of the order argue that it would let tech companies operate with little oversight.
The new law is expected to affect a wide range of advertisers, from large multinational brands to small local businesses that use AI‑generated imagery for marketing. Companies will need to review existing ad content and, if necessary, add clear labels such as “synthetic performer” or “AI‑generated.” Failure to do so could result in the penalties outlined in the statute.
Industry observers note that the law may prompt advertisers to adopt new compliance workflows and could influence how AI‑generated media is produced and used in marketing campaigns. The requirement for conspicuous disclosure is intended to inform consumers about the nature of the content they see, thereby increasing transparency.
As the law takes effect, state regulators will begin monitoring advertising content. Advertisers who rely on synthetic performers will need to ensure that their creative teams incorporate the required labeling. The law also signals that New York is positioning itself as a leader in responsible AI policy, potentially influencing other states to consider similar regulations.
In the coming months, it remains to be seen how quickly advertisers will adapt and whether the penalties will be enforced. The law’s implementation will likely be monitored by both state officials and industry groups, and it may set a precedent for future AI‑related advertising regulations across the United States.
