New York has enacted a first-in-the-nation law requiring any advertisement featuring an artificial intelligence-generated person in place of a human actor to carry a clear label identifying the use of a “synthetic performer.” The measure, signed by Governor Kathy Hochul in December, took effect Tuesday.
Under the law, a synthetic performer is defined as any “digitally-created media that appear as a real person.” The requirement applies across all advertising mediums, including digital, print, and social media platforms.
Hochul, a Democrat, framed the policy as a necessary step to prevent AI from operating without guardrails. “In New York, we are setting the rules of the road instead of letting AI run the show,” she said in a statement. She described the required disclosure as “simple, honest” and argued it “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation.”
Penalties for non-compliance are tiered: a first violation carries a $1,000 fine, while subsequent violations can cost up to $5,000. The law carves out exemptions for movies, television shows, streaming content, video games, and other works where synthetic performers are integral to the entire production. It also does not apply to audio-only ads or instances where AI is used solely for language translation.
The law drew strong opposition from advertising trade groups during its legislative journey. The American Association of Advertising Agencies, known as the 4As, argued in a blog post that the measure would “inject compliance uncertainty into the advertising process, burdening brands (and their agencies) who advertise in New York and undermining creative and technological innovation.”
In contrast, the New York State Broadcasters Association expressed relief that amendments had narrowed the law’s scope but remained wary of the broad definition of synthetic performers. David Donovan, the group’s president, told the Associated Press on Tuesday that local broadcast stations are prepared to comply.
The law’s biggest champion was SAG-AFTRA, the actors’ union, which recently ratified new contracts with studios and streamers that it says bolster protections against synthetic performers. The union has been a vocal advocate for measures that preserve job security for human actors amid the rapid rise of AI-generated content.
New York’s move is part of a broader wave of state-level efforts to regulate AI, targeting issues from deepfakes to data privacy and corporate transparency. Just after Hochul signed the synthetic performers law in December, President Donald Trump signed an executive order urging states to refrain from regulating AI, warning that a patchwork of state rules could stifle innovation and allow China to overtake the U.S. in the AI race. Critics of that order argue it gives tech companies a green light to operate with minimal oversight.
The new labeling requirement is expected to have immediate implications for advertisers, marketers, and content creators operating in New York, as they scramble to adjust their workflows and ensure compliance.
