New York Law Requires Disclosure of AI-Generated Performers in Advertisements

In New York, advertisements using artificially-generated people instead of real actors must now clearly label them as “synthetic performers.” This requirement stems from a law signed by Governor Kathy Hochul in December, which took effect on Tuesday. The governor’s office describes this legislation as a pioneering move that aims to enhance transparency. This comes at a time when AI-generated images are increasingly common in media, including on digital and social media platforms.

Synthetic performers are defined by the state as “digitally-created media that appear as a real person.” This law applies across all advertising platforms.

Governor Hochul, a Democrat, explained the law’s purpose in a statement, noting its role in protecting consumers, respecting the creative workforce, and keeping New York at the forefront of responsible innovation. Ads that fail to “conspicuously disclose” the use of synthetic performers could incur a penalty of $1,000 for a first violation and $5,000 for subsequent violations.

The law makes some exceptions. It doesn’t apply to movies, TV shows, streaming content, video games, or other works featuring synthetic performers throughout. It also excludes audio ads or ads that only use AI for language translation.

During its legislative process, several advertising organizations, including the American Association of Advertising Agencies (4As), voiced strong opposition. They argued the law would introduce compliance challenges, complicating advertising in New York and hindering creativity and innovation.

The New York State Broadcasters Association expressed relief over certain exemptions resulting from amendments but remained worried about the broad definition of a synthetic performer.

SAG-AFTRA, an actors’ union, was a major supporter of the law. The union recently approved a new contract that offers more protection against synthetic performers.

New York’s law is part of a broader trend in the U.S., where states aim to safeguard jobs for real people and mitigate privacy and safety risks associated with AI. Similar laws have been enacted to restrict deepfakes, limit the collection of personal data, and demand greater corporate transparency.

Shortly after Hochul signed this law, former President Donald Trump issued an executive order urging states not to regulate AI. Concerns were raised about fragmented state regulations potentially hindering AI companies’ growth and letting China gain ground in AI development. Critics believe the order allows tech firms to operate with minimal oversight.