Ads in New York must now label AI-generated ‘synthetic performers’

New York’s first-in-the-nation law mandates that advertisements featuring AI-generated performers—defined as 'digitally-created media that appear as a real person'—must conspicuously disclose their synthetic nature. The law, signed by Governor Kathy Hochul in December and taking effect July 10, imposes a $1,000 penalty for the first violation and $5,000 for subsequent offenses. Exemptions include ads for movies, TV shows, streaming content, video games, and audio ads where AI is used only for translation. Hochul called the law a step toward transparency, stating it protects consumers and creative workers while positioning New York as a leader in responsible AI innovation. Critics, including the American Association of Advertising Agencies (4As), argue the law introduces unnecessary compliance burdens and stifles creative and technological progress. The New York State Broadcasters Association expressed relief over certain exemptions but remained concerned about the broad definition of synthetic performers. The law aligns with broader U.S. efforts to regulate AI, including deepfake restrictions and privacy protections, though it contrasts with President Donald Trump’s December executive order discouraging state-level AI regulations. Supporters like SAG-AFTRA, which recently secured protections against synthetic performers in its new contract, praise the law for safeguarding real actors’ jobs. Opposition groups argue the law creates uncertainty for advertisers and could hinder innovation, particularly in a fragmented regulatory landscape. Meanwhile, other states are considering similar measures to address AI’s impact on jobs, privacy, and safety. The law’s enforcement will depend on how strictly New York defines synthetic performers and monitors compliance in ads across all media.