The recent enforcement of a New York state law now mandates advertisers to clearly label when using artificially-generated individuals in their campaigns. This applies to AI-generated people, termed ‘synthetic performers,’ within the state’s advertising to maintain transparency. Signed in December by Governor Kathy Hochul, this legislation is described as the first of its kind, aiming to address the rise of digital avatars across various media, including social platforms and digital ads.
The term ‘synthetic performers’ refers to digitally-created media designed to appear as real persons. According to this law, all forms of advertisements are included under this regulation.
“In New York, we are setting the rules of the road instead of letting AI run the show,” stated Governor Hochul. The simplicity of this disclosure, as per the law, is essential in protecting consumers and respecting the creative workforce, securing New York’s leadership in responsible innovation.
Advertisements failing to disclose the use of synthetic performers face penalties starting at $1,000 for initial violations, increasing to $5,000 for subsequent ones. However, exceptions are made for industries like film, television, streaming services, video games, and other complete works that use synthetic performers. Audio ads and those utilizing AI strictly for language translation are also exempted.
As the New York State Legislature debated this law’s enactment, it met opposition from the American Association of Advertising Agencies and other advertising groups. The 4As argued in a blog post that this law would create compliance ambiguities, complicating advertising in New York while stifling creativity and technological advancement. While some exceptions brought relief, the expansive definition of ‘synthetic performer’ remained a concern for organizations like the New York State Broadcasters Association.
SAG-AFTRA, the prominent actors’ union, strongly backed this legislation. The union recently agreed on a new contract with media companies, further ensuring protection against synthetic performers.
The enactment of such laws is part of a broader movement across various U.S. states to protect jobs for humans and mitigate any privacy and safety risks posed by AI. Existing state laws include prohibitions on deepfakes in specific contexts, restrictions on collecting personal data, and enforced transparency for businesses.
Interestingly, after New York’s passage of this law, former President Donald Trump signed an executive order discouraging individual states from imposing AI regulations. This order responded to fears that inconsistent state regulations could hinder AI industry growth and give international competitors like China an advantage. Critics argue that the order grants tech companies significant leeway with minimal oversight.