Updated Jul 3, 2026
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New York Synthetic Performer Disclosure Law Takes Effect, Mandating Labels on AI-Generated Ads

New York has become the first state to require disclosure labels on advertisements featuring AI-generated people, with Gov. Kathy Hochul's synthetic performer disclosure law now in effect. The law, signed in December 2025, mandates that any ad using a digitally created human likeness carry a conspicuous notice informing consumers the individual is not real. The move arrives as the Interactive Advertising Bureau reports 83% of advertising executives say their companies are now using AI in the creative process — a 60% jump from 2024.

By Mara Whitfield2 min read
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New York has become the first state to require disclosure labels on advertisements featuring AI-generated people, with Gov. Kathy Hochul's synthetic performer disclosure law now in effect. The law, signed in December 2025, mandates that any ad using a digitally created human likeness carry a conspicuous notice informing consumers the individual is not real. The move arrives as the Interactive Advertising Bureau reports 83% of advertising executives say their companies are now using AI in the creative process — a 60% jump from 2024.

What the Law Requires

Under the statute, advertisers must include a clear label whenever an AI-generated synthetic performer — a digitally created image or video that looks and sounds like a real person — appears in a commercial. Such figures have increasingly replaced traditional photoshoots and live talent in social media and digital advertising campaigns.

The law does not prescribe specific wording or delivery format for the notice. It requires only that the disclosure be conspicuous to consumers, leaving advertisers to determine how to satisfy that standard without explicit statutory guidance.

Fines and Enforcement

First-time violations carry a civil fine of up to $1,000. Each subsequent violation adds a $5,000 penalty. The tiered structure is designed to deter repeat noncompliance rather than penalize initial missteps.

Industry and Labor Reaction

SAG-AFTRA, the national performers union, backed the legislation and called it a meaningful step toward AI regulation. Duncan Crabtree-Ireland, the union's National Executive Director and Chief Negotiator, said the law was the result of artists, lawmakers and advocates working together to address risks from unchecked AI use, and that it puts human creativity and trust first by mandating transparency and securing consent.

New York Assemblymember Linda B. Rosenthal, a Manhattan Democrat and sponsor of the legislation, said the proliferation of deepfakes and AI-generated performers has made it harder for consumers to distinguish fact from fiction. She framed the disclosure requirement as essential protection for both audiences and working artists.

Policy Signal for Advertisers

Hochul cast the law as the state staking out early regulatory ground rather than ceding it to the technology. For the advertising industry, the law introduces a compliance layer that will require creative teams and legal departments to verify the origin of any human likeness used in New York-distributed campaigns. With adoption of AI in ad production rising sharply, the disclosure requirement is set to affect a substantial portion of the digital advertising market — and could serve as a template for other states weighing similar rules.

Key takeaways

Frequently asked

Which state is the first to require disclosure labels on AI-generated performers in ads?

New York is the first state to mandate such disclosure labels, through its synthetic performer disclosure law now in effect.

What are the penalties for violating the law?

First-time violations carry a civil fine of up to $1,000, and each subsequent violation adds a $5,000 penalty.

Does the law specify how the disclosure must appear?

No, the law does not prescribe specific wording or delivery format; it requires only that the disclosure be conspicuous to consumers.

Why was the law created?

It aims to protect consumers and working artists as deepfakes and AI-generated performers make it harder to distinguish real people from synthetic ones, mandating transparency and consent.

How widespread is AI use in advertising?

The Interactive Advertising Bureau reports 83% of advertising executives say their companies now use AI in the creative process, a 60% jump from 2024.