New York law requires clear disclosure labels on AI-generated ads

A new law, the first of its kind, has gone into effect in New York and effectively targets ads that feature an image or video of a person created using artificial intelligence.

of the state synthetic performer disclosure lawThe law, signed by Gov. Kathy Hochul in December 2025, requires ads featuring an AI-generated person to include a clear label stating that the person is not real.

“In New York, we are setting the rules of the road rather than letting AI run the business,” Hochul said. a press release. “Requiring simple and honest disclosure whenever synthetic performers are used in an advertisement protects consumers, respects our creative workforce, and keeps New York at the forefront of responsible innovation.”

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AI-generated synthetic performers are digitally created media that look and sound like real people and are often used in marketing campaigns on social media and digital advertising in lieu of traditional photo shoots.

Under the new law, fines of up to $1,000 are imposed for first-time violations; For each subsequent violation, a fine of $5,000 is imposed.

However, the law does not provide legal guidance regarding the wording or presentation of the disclosure and only requires that the disclosure be “conspicuous” to consumers.

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Human avatars created by artificial intelligence at the Graphen Robotics exhibition booth during The AI ​​Summit New York 2023 in New York, USA, on Wednesday, December 6, 2023. (Bing Guan/Bloomberg via Getty Images)

“The rise of deepfakes and AI-generated artists has made it harder than ever for consumers to separate fact from fiction,” said New York Assemblywoman Linda B. Rosenthal, D-Manhattan.

“Synthetic artist legislation will alert New Yorkers to the use of synthetic artists in advertising and provide much-needed transparency to consumers and protection to artists.”

By the way to a report According to a report published by the Interactive Advertising Bureau, nearly 83% of advertising executives reported that their companies used AI in the creative process this year; This represents a 60% increase from 2024.

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The state’s synthetic artist disclosure law was signed by New York Governor Kathy Hochul in December 2025. (Adam Gray/Bloomberg via Getty Images)

The legislation was backed by national artist union SAG-AFTRA, which hailed the decision as a step towards AI regulation and consumer protection as fears about deepfakes grow among creators.

“These protections are the direct result of artists, lawmakers, and advocates coming together to confront the real and immediate risks posed by the uncontrolled use of artificial intelligence,” said Duncan Crabtree-Ireland, SAG-AFTRA National Executive Director and Chief Negotiator. he said. previous press release.

“New York has charted a bright line that puts human creativity, integrity, and trust first by requiring transparency and ensuring consent,” he continued.

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Hochul’s office did not immediately respond to Fox News Digital’s request for comment.