New York Law Regulates AI-Generated Advertisements
Advertisements in New York that use AI-generated characters instead of real actors must now clearly declare that they’ve employed a “synthetic performer.” This new requirement was established by a law signed by Governor Kathy Hochul in December and took effect recently.
This legislation is touted as the first of its kind in the country, aiming to enhance transparency as AI performers become more prevalent across various media platforms, including digital ads and social media. According to the law, synthetic performers are defined as “digitally-created media that appear as a real person,” and this rule applies to all types of advertisements.
Hochul expressed that New York is proactively establishing guidelines rather than letting AI dictate terms. She emphasized that the law’s “simple, honest disclosure” is important for consumer protection, supporting the creative workforce, and ensuring New York remains a leader in responsible innovation.
If ads fail to adequately disclose the use of synthetic performers, the penalties include a fine of $1,000 for a first offense, escalating to $5,000 for subsequent violations.
However, the law does have certain exemptions. It won’t apply to ads for movies, TV shows, streaming content, and video games that feature synthetic performers within those entire works. Moreover, it does not cover audio ads or those where AI is used only for translation purposes.
During the legislative process, opposition arose from organizations such as the American Association of Advertising Agencies, which argued that it could create compliance confusion and hinder innovation. They mentioned that this could be a burden for brands and advertising agencies in New York.
Other groups, like the New York State Broadcasters Association, acknowledged the amendments that provided some exemptions but expressed reservations about the broad definition of synthetic performers. Their president noted that local stations are prepared to adapt to the new regulations.
The legislation received strong backing from SAG-AFTRA, the actors’ union, which recently finalized a new contract aimed at offering enhanced protections against synthetic performers.
This law reflects a growing trend in various states to protect jobs for actual humans and address potential privacy and safety concerns linked to AI. Other recent laws have targeted areas such as limiting deepfakes and increasing transparency around data collection.
Interestingly, shortly after Hochul enacted this law, former President Donald Trump signed an executive order urging states to refrain from regulating AI. This order stemmed from concerns that inconsistent regulations could hinder the growth of AI companies and allow other countries, like China, to catch up. Critics contend that this approach would leave tech firms largely unregulated.
