Editorial illustration for NY Passes Laws Mandating AI Avatar Disclosure in Commercial Content
NY Mandates AI Avatar Disclosure in Commercial Content
NY signs two bills requiring ads to disclose AI-generated avatars
New York just drew a line in the digital sand for artificial intelligence in advertising. The state has taken a bold step to protect consumers and creative professionals by passing notable legislation that tackles the murky world of AI-generated avatars.
These new laws target a growing concern in commercial media: the potential misuse of synthetic human representations. Businesses will now face strict requirements about disclosing when an image or character isn't actually real.
The timing couldn't be more critical. As AI technology becomes increasingly sophisticated, the ability to create hyper-realistic digital humans has outpaced existing regulatory frameworks. Actors, marketers, and consumers have been left wondering about the boundaries of this emerging technology.
New York's approach signals a potential national trend in managing AI's visual deception. By mandating transparency, the state is pushing back against potential manipulation in advertising and entertainment.
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 latest legislative move signals a key moment for creative industries grappling with AI's expanding influence. The state has taken a proactive stance by mandating disclosure of AI-generated avatars in commercial content, directly addressing growing concerns about synthetic representation.
The bills appear specifically tailored to protect performers' interests, particularly in film and entertainment. SAG-AFTRA's involvement suggests these regulations emerged from collaborative discussions between artists, advocates, and lawmakers.
While the full implications remain unclear, the legislation represents an initial attempt to establish transparency around AI-generated human representations. Creators will now need to explicitly reveal when avatars are artificially constructed, potentially reshaping how commercial content is produced and perceived.
The timing feels significant. As AI technology becomes more sophisticated, these disclosure requirements could set a precedent for other states considering similar protections. Still, questions linger about enforcement and the long-term impact on creative industries.
For now, New York has drawn a clear line: synthetic representations must be openly acknowledged. The creative world is watching.
Further Reading
- New law requires AI disclosure in advertising in the US - Digital Watch Observatory
- New York State Legislature's Preliminary Response to AI: Disclosure of Synthetic Performers in Advertising and Expanded Prohibitions on Digital Replicas of - BlogMSK
- AI Update, December 19, 2025: AI News and Views From the Past Week - MarketingProfs
- New York Updates AI Disclosure Law - Mondaq
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Common Questions Answered
What specific requirements do the new NY laws impose on AI-generated avatars in commercial content?
The new laws mandate strict disclosure when an image or character is not actually real, particularly targeting synthetic human representations in commercial media. Businesses will now be required to clearly indicate when an avatar or representation is AI-generated, ensuring transparency for consumers.
How are film industry professionals like SAG-AFTRA responding to these new AI avatar regulations?
SAG-AFTRA executive director Duncan Crabtree-Ireland celebrated the new bills as a direct result of collaboration between artists, lawmakers, and advocates. The legislation addresses critical concerns about AI usage and compensation for performers, providing important protections in an industry increasingly impacted by artificial intelligence technologies.
Why is New York taking such a proactive stance on AI-generated avatars in commercial content?
New York is seeking to protect consumers and creative professionals from potential misuse of synthetic human representations in media. By mandating clear disclosure of AI-generated avatars, the state aims to create transparency and prevent deceptive practices in commercial content across various industries.