New York Pioneers AI Performer Disclosure in Advertising
AI disclosure in advertising has become a legal requirement in New York, setting a new precedent for transparency in the marketing industry. On Tuesday, the state’s legislation S.8420-A/A.8887-B officially took effect, mandating that advertisers must clearly disclose when synthetic, AI-generated performers are used in ads. This landmark law, signed by Governor Kathy Hochul in December, marks a significant step toward responsible innovation and consumer protection within the advertising landscape.
Key Provisions of the Legislation
Governor Hochul described the law as one of two “common sense” measures designed to increase transparency in advertising. While the other law safeguards the likeness of deceased individuals from unauthorized commercial use, S.8420-A/A.8887-B specifically addresses the growing use of AI-generated performers. Marketers are now required to disclose not only AI-generated main performers but also background actors and even AI-created models, such as hand models, in any ad running in New York State.
The law does not detail the precise language or format of these disclosures, leaving marketers some flexibility in their approach. However, penalties for non-compliance are clear: a $1,000 fine for the first offense and $5,000 for each subsequent violation. This underscores the seriousness with which New York is approaching AI disclosure in advertising and signals to brands that transparency is no longer optional.
Industry Reactions and Anticipated Impact
Industry leaders have already started adapting. Tyler Smith, head of production for North America at VML, emphasized the importance of proactively aligning with New York’s legal requirements. “We’re just trying to get out ahead of it…let’s follow the New York laws to a T, but ultimately, we have to start thinking about this across the board,” Smith said. Many marketers view New York as a trailblazer, expecting other states to adopt similar regulations in the near future.
This new law also comes amid signs of consumer fatigue with AI-generated content. According to a Billion Dollar Boy study shared by Emarketer, consumer enthusiasm for AI-generated advertising dropped from 60% in 2023 to just 26% in 2025. This shift highlights the growing demand for authenticity and transparency, reinforcing the relevance of AI disclosure in advertising.
The Value of Transparency
Transparency in advertising is not a new concept, but the rise of AI-generated performers brings fresh challenges. In the early days of influencer marketing, lack of disclosure led to confusion and mistrust. Today, the use of AI in ads can blur the lines between real and synthetic, making disclosure even more critical.
Johnny Rohrbach, co-founder and global head of partnerships at Silverside.AI, which has collaborated with major brands like Coca-Cola, stated, “Our stance is that transparency is always the best policy.” Rohrbach explained that even before regulations, Coca-Cola proactively included disclaimers in their AI-driven campaigns, a practice Silverside.AI continues to recommend. He added, “Consumers in this market demand transparency more than they ever have before. AI is very much a medium through which to tell stories, but I don’t think it makes sense from a business perspective to try and hide the fact that you were using it.”
Practical Guidance for Marketers
With the new law in effect, marketers must integrate disclosure into their creative processes. Andrew Foxwell, co-founder of Foxwell Digital, emphasized the importance of making disclosure standard practice—not just to comply with New York law, but to build consumer trust. “If you’re advertising—and you’re going to use AI models, you have to disclose it. Just put that in now. And the consumer wants to know too,” Foxwell advised.
The law’s flexibility allows brands to tailor disclosures to their unique voice and campaign style. Tyler Smith noted that disclosures could even be delivered with humor or brand personality, provided they are “conspicuously disclosed.” Some marketers are taking a wait-and-see approach, hoping for further clarity on presentation and placement requirements, but most agree that directness and openness are the safest routes.
Setting a Precedent for the Future
New York’s move is expected to influence other states and potentially establish a national standard for AI disclosure in advertising. As brands adapt, many industry experts believe that transparent disclosure will become not just a legal necessity but a competitive advantage, fostering greater trust and brand loyalty. As Johnny Rohrbach summarized, “My hope is that this is a table-setter that increases transparency.”
For marketers, the message is clear: embracing transparency around AI-generated performers is not just good practice—it’s now the law in New York, and likely a sign of things to come elsewhere.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.