New York Becomes First State to Require AI 'Synthetic Performer' Labels in Ads

Summary

New York has enacted the nation's first law requiring advertisements featuring AI-generated synthetic performers to include clear labeling disclosing the use of artificial performers. Governor Kathy Hochul signed the legislation in December, and it went into effect on Tuesday. Violations carry penalties of $1,000 for first offenses and $5,000 for subsequent infractions.

The law defines synthetic performers as "digitally-created media that appear as a real person" and applies to ads across all media platforms, from social media to digital advertising. The legislation includes targeted carve-outs for entertainment (movies, TV, streaming services, video games) and other specific use cases like audio ads and language translation, addressing some concerns raised during the legislative process.

The law has strong backing from SAG-AFTRA, the actors' union, which views it as essential worker protection during the AI era. However, advertising industry organizations, including the American Association of Advertising Agencies, have opposed the measure, arguing it creates compliance uncertainty and could hinder creative and technological innovation.

• The law reflects growing momentum for AI regulation across U.S. states, though it faces federal pressure to limit state-level AI restrictions

Editorial Opinion

New York's synthetic performer disclosure law strikes a reasonable balance between consumer transparency and technological innovation, setting a pragmatic precedent for AI regulation that other states are likely to follow. However, the exemptions for entertainment content seem to undermine the transparency goal and suggest lawmakers struggled with how broadly to define 'synthetic performer.' The law's real impact will hinge on clear enforcement and whether the advertising industry ultimately complies or finds workarounds.