New York AI law now requires advertisers to label synthetic performers or face penalties

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New York became the first state to require advertisements featuring AI-generated people to clearly disclose their use of synthetic performers. The law, which took effect this week, imposes fines of $1,000 for first violations and $5,000 for repeat offenses. While SAG-AFTRA supports the measure to protect creative workforce, advertising groups warn it creates compliance uncertainty.

New York AI Law Takes Effect With Mandatory Disclosure Requirements

A groundbreaking New York law on AI went into effect this week, requiring all advertisements featuring AI-generated synthetic performers to include clear labels disclosing their artificial nature

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. Signed in December by Gov. Kathy Hochul, the legislation represents what her office describes as a "first-in-the-nation law" designed to boost transparency in advertising as AI-generated performers become increasingly prevalent across social platforms and digital advertising

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Source: AP

Source: AP

Under state law, synthetic performers are defined as "digitally-created media that appear as a real person," and the requirement applies to advertisements across any medium

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. Advertisers who fail to conspicuously disclose their use of AI-generated synthetic performers face penalties of $1,000 for a first violation and $5,000 for subsequent infractions

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Balancing Innovation and Transparency in Advertising

"In New York, we are setting the rules of the road instead of letting AI run the show," Gov. Kathy Hochul stated, emphasizing that the "simple, honest disclosure" required by the law "protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation"

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. The legislation aims to protect creative workforce while addressing growing concerns about AI in advertising and its impact on job security for human performers.

The law includes specific exemptions for advertisements promoting movies, television shows, streaming content, video games, and other works that feature synthetic performers throughout the entire production

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. Audio advertisements and ads using AI solely for language translation are also excluded from the requirement to label AI-generated performers

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Industry Pushback Against Compliance Requirements

The American Association of Advertising Agencies, known as the 4As, and several other advertising organizations voiced strong opposition to the New York AI law during its legislative journey

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. In a blog post, the 4As argued the law would harm advertisers by "injecting compliance uncertainty into the advertising process, burdening brands (and their agencies) who advertise in New York and undermining creative and technological innovation"

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The New York State Broadcasters Association expressed relief about the carve outs created through amendments but remained concerned about the broad definition of a synthetic performer

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. These compliance concerns highlight the tension between AI regulation and industry innovation as states navigate the complex landscape of artificial intelligence governance.

SAG-AFTRA Champions Worker Protections

The law's strongest advocate was SAG-AFTRA, the actors' union that recently ratified a new contract with studios and streamers providing additional protections against synthetic performers

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. The union's support reflects broader concerns about job security and privacy risks as AI-generated content becomes more sophisticated and widespread across the entertainment and advertising industries.

Federal Tensions Over State AI Regulation

The New York AI law emerges amid growing debate over who should regulate artificial intelligence. Shortly after Hochul signed the synthetic performers legislation in December, President Donald Trump issued an executive order pressuring states not to regulate AI

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. The federal move stemmed from concerns that a patchwork of state regulations could impede AI companies' growth and allow China to gain ground in the global AI race

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. Critics of the executive order argue it enables tech companies to operate with minimal oversight, potentially exposing consumers to privacy risks and other harms.

This legislation joins a growing list of state laws addressing AI's impact, including measures barring deepfakes in specific instances, limiting collection of personal information, and requiring greater transparency from companies

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. As New York implements these fines and penalties, other states will be watching closely to see whether the transparency in advertising approach successfully balances consumer protection with technological advancement.

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