In a groundbreaking move, New York has introduced a new law aimed at regulating the use of artificial intelligence (AI) in advertising. This law, signed by Governor Kathy Hochul in December, requires that any advertisements featuring AI-generated people must clearly label them as “synthetic performers.” This law went into effect on Tuesday and is being hailed as a “first-in-the-nation” initiative.
As AI technology continues to advance, it is becoming increasingly common to see digitally created characters in various forms of media, including social media and digital advertising. The law defines synthetic performers as “digitally-created media that appear as a real person,” ensuring that consumers are aware when they are viewing AI-generated content.
Governor Hochul stated, “In New York, we are setting the rules of the road instead of letting AI run the show.” She emphasized that the law aims to provide “simple, honest disclosure” which protects consumers, supports the creative workforce, and positions New York as a leader in responsible innovation.
Under this new regulation, advertisements that fail to “conspicuously disclose” the use of synthetic performers will face penalties. A first violation can result in a fine of $1,000, while subsequent violations can lead to fines of $5,000 or more.
However, the law does have some exceptions. It does not apply to advertisements for movies, television shows, streaming content, video games, or other works where synthetic performers are part of the entire project. Additionally, audio advertisements and those where AI is only used for language translation are also exempt.
While many see this legislation as a positive step towards transparency, it has faced criticism from various advertising organizations. The American Association of Advertising Agencies (4As) expressed concerns that the law could create confusion and hinder creativity in advertising. They argue that the requirement for compliance could burden brands and their advertising agencies operating in New York.
Conversely, some organizations, including the New York State Broadcasters Association, acknowledged the inclusion of certain exemptions but remain wary of the broad definition of synthetic performers. David Donovan, the president of the association, noted that local broadcast stations are prepared to comply with the new law.
Support for the law largely comes from SAG-AFTRA, the actors’ union, which has been advocating for protections against the rise of synthetic performers in the industry. They recently ratified a contract with studios that enhances security for real actors in a landscape increasingly influenced by AI.
This law reflects a growing trend across the United States to boost job security for human workers and mitigate potential risks associated with AI technology. Several states have already enacted regulations aimed at limiting deepfakes or enhancing transparency around personal data collection.
Interestingly, just after the synthetic performers law was signed, former President Donald Trump issued an executive order urging states not to impose regulations on AI. This move raised concerns among critics who believe that it could enable tech companies to operate without adequate oversight, potentially allowing other countries, like China, to advance in the AI race.
As technology continues to evolve, the conversation surrounding AI’s role in our daily lives and industries will undoubtedly be a hot topic. New York’s law is a significant step in ensuring that consumers are informed and that the creative workforce is respected in an era where AI is becoming increasingly prevalent.
