NY signs two bills requiring ads to disclose AI‑generated avatars
New York’s governor put his signature on two pieces of legislation Thursday, targeting a niche that’s been slipping under regulators’ radars for years: the use of computer‑crafted faces and bodies in advertising. The measures require any commercial spot that features an AI‑generated person—whether a digitally altered celebrity or a wholly synthetic figure—to include a clear disclosure. It’s a move that comes as studios and brands experiment with virtual talent to cut costs and sidestep traditional casting.
For actors, the shift raises questions about credit, royalties and the very definition of performance. The film industry, already wrestling with how to value synthetic stand‑ins, now faces a legal framework that could reshape contracts and compensation models. While the tech is impressive, the legislation forces a conversation about transparency and fairness in a market where the line between real and artificial is blurring faster than ever.
Two bills signed Thursday deal with how AI-generated people -- real or entirely synthetic -- can appear in commercial content. The bills are especially relevant to the film industry and actors, for whom AI usage (and compensation) is one of the most pressing issues the profession is facing. In a joint press release with Hochul, SAG-AFTRA executive director Duncan Crabtree-Ireland celebrated the signings.
"These protections are the direct result of artists, lawmakers and advocates coming together to confront the very real and immediate risks posed by unchecked AI use," Crabtree-Ireland said. The disclosure bill says that the notice must be "conspicuous" when the ad includes a synthetic avatar that doesn't correspond to a real human. The bill dealing with the likenesses of deceased people is part of the state right of publicity -- there's no federal right of publicity, but instead a patchwork of uneven state laws, many of which are not updated for the generative AI era.
There are some specific cases where a disclosure isn't needed: if the advertisement or promotional material is for an "expressive work" like a movie, TV show, or video game, where the AI avatar in the ad is consistent with its use in the work. State politics outlet New York Focus reported that at least a few state agencies have used AI to produce ads, though in some cases they may be exempt because they're considered public service announcements. Violations of the disclosure requirement incur a $1,000 fine for the first time and jump to $5,000 for subsequent instances.
New York's move is concrete, but its ripple effects are still unclear. By mandating a label whenever an advertisement features an AI‑generated person, the state hopes to give viewers a cue that the image is not a real individual. The legislation, S.8420‑A/A.8887‑B, is billed as the first of its kind in the United States and is presented as a common‑sense step toward transparency and consumer protection.
At the same time, a companion bill adds a consent requirement for using a deceased person's name or likeness in commercial contexts, a provision that directly touches the film industry and actors who have long debated AI usage and compensation. Whether advertisers will adopt new disclosure practices without friction remains to be seen. Could the consent rule deter studios from exploiting legacy faces, or will it create new legal hurdles?
The bills are now law, but how they will be enforced, and whether they will meaningfully shift industry norms, is still uncertain.
Further Reading
- Governor Hochul Signs Legislation to Protect Consumers and Boost AI Transparency in Film Industry - Office of Governor Kathy Hochul
- New York Poised to Be at the Forefront of AI Regulation; Five Bills Await Gov. Hochul’s Action - Greenberg Traurig
- Digital Avatars Deep Dive Series: Navigating the Legal and Regulatory Landscape - Morrison Foerster
- Summary of Artificial Intelligence 2025 Legislation - National Conference of State Legislatures
- New York Passes Novel Law Requiring Safeguards for AI Companions - Wilson Sonsini Data Advisor
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Common Questions Answered
What do the New York bills S.8420‑A and A.8887‑B require for advertisements featuring AI‑generated avatars?
The bills mandate that any commercial spot displaying an AI‑generated person—whether a digitally altered celebrity or a fully synthetic figure—must include a clear on‑screen disclosure indicating the image is not real. This labeling requirement is intended to provide viewers with transparency and protect consumers from deception.
How does the legislation address the use of deceased individuals' likenesses in AI‑generated advertising?
A companion bill adds a consent requirement, meaning advertisers must obtain permission from the estate or legal representatives before using a deceased person's likeness in AI‑generated content. Without such consent, the use of the deceased individual's image in commercial ads would be prohibited under New York law.
Which industry groups supported the signing of the AI‑generated person bills, and what were their main concerns?
SAG‑AFTRA, represented by executive director Duncan Crabtree‑Ireland, praised the legislation, emphasizing that it protects actors and artists from unauthorized AI replication and ensures fair compensation. Their primary concern is that AI usage threatens jobs and rights within the film and entertainment sectors.
What potential ripple effects might New York’s AI‑generated avatar disclosure law have on advertising practices nationwide?
Although the law is the first of its kind in the United States, it could prompt other states to adopt similar transparency requirements, leading to industry‑wide standards for labeling AI‑generated content. Brands may also need to adjust production workflows and budgeting to accommodate disclosure compliance and consent processes.