New legislation in New York requires that advertisements featuring artificial intelligence-generated figures be clearly labeled as using a “synthetic performer.” This law, effective since Tuesday, mandates disclosures across all media types. Signed by Governor Kathy Hochul last December, the law aims to increase transparency with the rising use of AI-generated performers in media and ads.

Synthetic performers are described by state law as “digitally-created media that appear as a real person.” Non-compliance results in a $1,000 fine for first-time violations, escalating to $5,000 for further breaches. However, exceptions exist for ads related to movies, TV shows, streaming, video games, and works featuring synthetic performers throughout, as well as adverts using AI solely for translating languages.

The law reflects Governor Hochul’s stance on AI regulation, stating that New York aims to “set the rules of the road instead of letting AI run the show.”

Opposition groups like the American Association of Advertising Agencies express concerns about the impact on advertisers, arguing the law introduces uncertainty in compliance and burdens brands and agencies. The New York State Broadcasters Association appreciates some exceptions but remains worried about the broad classification of synthetic performers. Yet, they confirm readiness to comply.

SAG-AFTRA, the actors’ union, strongly backed the legislation, linking it to their recent contract offering protections against synthetic performers. This law aligns with efforts across multiple states to safeguard human jobs and address AI’s privacy and safety implications.

Shortly after this law’s signing, President Donald Trump issued an executive order discouraging state-level AI regulations, fearing they could hinder AI industry growth and put the U.S. behind in technological advancement. Critics argue this may lead to a lack of oversight for tech companies.