New York regulates AI ads: Hochul's law takes effect June 9

New York State is stepping up transparency in advertising with a new law that mandates clear disclosure when artificial intelligence creates the performers seen in commercials. Effective June 9th, the regulation requires advertisers to visibly indicate if a synthetic performer, generated by AI, is used in promotional content.

Governor Kathy Hochul signed the legislation, which amends Section 396-b of the state's General Business Law. The core of the reform introduces the concept of a "synthetic performer" – a digital asset created or altered by computer algorithms to mimic a human performance without representing a real person. This applies to any entity marketing goods or services through advertisements.

The law defines artificial intelligence broadly, encompassing machine-based systems capable of making predictions or decisions, and specifically includes generative AI technologies that create synthetic content like images, videos, and audio. These definitions aim to clearly delineate which AI tools fall under the new disclosure obligations.

Advertisers who fail to comply with the new disclosure requirements will face financial penalties. Each violation can result in fines ranging from $500 to $2,000, underscoring the state's commitment to ensuring consumers are aware when they are interacting with AI-generated content in advertising.