Advertisements in New York that use artificial intelligence to create synthetic performers instead of hiring real actors must now include clear labeling. This requirement comes from a state law signed into effect by Governor Kathy Hochul in December. The law, which her office labels as a ‘first-in-the-nation’, aims to increase transparency as AI-generated performers become more prevalent in media, including on social platforms and digital ads.
According to New York state law, synthetic performers refer to ‘digitally-created media that appear as a real person’. This mandate applies to advertisements in every medium. Governor Hochul stated, ‘In New York, we are setting the rules of the road instead of letting AI run the show.’ She emphasized that the requirement for ‘simple, honest disclosure’ protects consumers and respects the creative workforce while ensuring New York remains a leader in responsible innovation.
Advertisements failing to prominently disclose the use of synthetic performers face fines. The penalty is $1,000 for a first violation and $5,000 for subsequent offenses. However, the law outlines specific exceptions: it does not apply to ads for movies, TV shows, streaming content, video games, or other works entirely featuring synthetic performers. Additionally, it exempts audio advertisements and ads where AI only translates language.
While the law developed last year in the state legislature, the American Association of Advertising Agencies and other advertising organizations openly opposed it. The 4As organization expressed concerns, suggesting the law introduces compliance uncertainty, adding burdens on brands and agencies advertising in New York, and hampering creative and technological innovation.
Other groups, like the New York State Broadcasters Association, acknowledged relief with the amendments providing exemptions but remained worried about the broad definition of synthetic performers. Meanwhile, the law gained significant support from SAG-AFTRA, the actors’ union. They recently finalized a new contract with studios and streaming services, which they argue offers additional protections against synthetic performers.
This law joins others across various U.S. states aimed at improving job security for humans and mitigating privacy and safety risks posed by AI. Existing laws cover topics such as banning deepfakes, limiting personal information collection, and requiring corporate transparency. Right after Governor Hochul signed this law, former President Donald Trump signed an executive order urging states not to regulate AI. The concern was that inconsistent regulations could hinder AI industry growth and allow China to gain an advantage in AI development. Critics of the executive order believe it permits tech companies to operate with minimal oversight.