New York mandates AI performer labels in ads

Under the law, "digitally-created media that appear as a real person" are defined as synthetic performers. This regulation applies to advertisements across all mediums. Governor Hochul stated that the law sets responsible innovation standards and protects consumers and creative professionals.

Advertisements that fail to conspicuously disclose the use of synthetic performers will face penalties, with a $1,000 fine for the first violation and $5,000 for subsequent offenses. Specific exemptions are in place for ads where synthetic performers are integral to the entire work, such as movies, television shows, and video games. Audio advertisements and those using AI solely for language translation are also excluded.

Industry reactions have been mixed. The American Association of Advertising Agencies and other advertising organizations opposed the law, arguing it could create compliance uncertainty and hinder creative and technological innovation. Conversely, the New York State Broadcasters Association, while noting some relief from amendments, expressed concern over the broad definition of synthetic performers but stated local stations are prepared to comply. The actors' union, SAG-AFTRA, was a strong supporter, highlighting its recent contract that includes protections against synthetic performers.

This New York legislation is part of a broader movement in several U.S. states to address AI's impact on job security and mitigate potential privacy and safety risks. These efforts include laws barring deepfakes and requiring greater corporate transparency. The move comes as President Donald Trump signed an executive order in December urging states not to regulate AI, expressing concern that a fragmented regulatory landscape could impede U.S. AI companies and allow China to advance in the AI race.