New York Enacts Law on AI-Generated Performers in Advertising

New York Governor Kathy Hochul announced a groundbreaking state law regulating advertisements that use AI-generated individuals instead of real actors. Effective since December, the law mandates clear labeling of “synthetic performers.”Advertisers must inform consumers by stating if such performers feature in their material.

This law is regarded by Hochul’s office as the first of its kind nationwide. It aims to enhance transparency as AI-generated imagery expands in media and digital platforms. “Synthetic performers” are defined as digitally created media resembling real people. The regulation applies to ads across all formats.

“In New York, we establish standards instead of allowing AI to dominate,” said Hochul. She described the disclosure requirement as “a simple, honest” measure that “safeguards consumers, honors our creative workforce, and positions New York as a leader in responsible innovation.” Penalties for non-compliant ads range from $1,000 for the first offense to $5,000 for subsequent violations.

The law excludes certain types of advertisements, such as those for movies, TV shows, video games, and other synthetic performer-focused works. It does not cover audio-only ads or those using AI purely for language translation.

Despite its objectives, the law encountered resistance from advertising entities during legislative deliberations. The American Association of Advertising Agencies, also known as the 4As, criticized the law for potentially complicating compliance and stifling creativity and technological advances.

The New York State Broadcasters Association expressed partial support due to amendments but remained wary of the broad definition of synthetic performers. The organization’s president, David Donovan, confirmed that local broadcasters are prepared to adhere to the new requirements.

SAG-AFTRA, the actors’ union, strongly backed the law. It aligns with their new agreement with studios that bolsters safeguards against AI use.

This measure joins other state laws nationwide intending to secure human jobs or mitigate privacy and safety issues linked to AI. Existing laws include restrictions on deepfakes, limits on personal data collection, and demands for corporate transparency.

Concurrently, former President Donald Trump issued an executive order discouraging state-level AI regulation. Fears of hindering AI companies’ progress and falling behind China fueled the decision. Critics, however, argue the order permits tech entities to function with minimal scrutiny.