If you’re running ads in New York (and let’s be honest, if you’re advertising online, you probably are), there’s a new law you need to know about.
On December 11, 2025, New York Governor Kathy Hochul signed first-of-its-kind AI advertising legislation that requires advertisers to disclose when they use AI-generated “synthetic performers” in commercial ads. Starting June 2026, if you don’t comply with these AI disclosure requirements, you’re looking at civil penalties of $1,000 for the first violation and $5,000 for each one after that.
Those penalties can add up fast, especially if you’re running campaigns across multiple platforms with multiple creatives. So let’s break down what New York’s AI disclosure law actually means and how to make sure you’re not accidentally racking up fines.
What’s a “Synthetic Performer”?
According to New York’s AI advertising regulations, a synthetic performer is a digitally created asset made using generative AI or a software algorithm that’s intended to look like a human performer who isn’t recognizable as any specific real person.
In plain English: if you use AI to create a fake person in your ad, you have to tell people it’s fake.
This could be:
- An AI-generated model in your product photos
- A synthetic voice in your video ad
- A digital person created for your social media campaign
- Any AI-created human likeness that appears to be performing or engaging in your ad
- The key word here is “synthetic.” It has to look like a person, but not be identifiable as any actual person.
What Do You Have to Disclose Under the AI Advertising Law?
The law requires a “conspicuous disclosure” that a synthetic performer is in your ad.
Conspicuous means prominent, unavoidable, and noticeable. Not buried in fine print. Not hidden in a terms and conditions link. Actually visible and clear.
The good news is the AI disclosure law doesn’t require specific language. You don’t have to say exactly “This ad contains a synthetic performer created by artificial intelligence” (though that would work). You just have to make it obvious.
The bad news is “conspicuous” is a judgment call, and if you get it wrong, you’re paying the penalty.
Here’s what I’d recommend: make the disclosure clear, simple, and impossible to miss. Something like “AI-generated imagery” or “Created with AI” in a font size and placement that’s actually readable. Don’t try to be clever or subtle. Just be transparent.
When Does This Apply?
The law applies to anyone producing or creating an advertisement for commercial purposes that appears before the public in New York. That includes:
- Brands
- Agencies
- Digital marketers
- Social media advertisers
- Basically anyone running ads
And here’s the kicker: you only have to disclose if you have “actual knowledge” that a synthetic performer is being used.
That sounds like a loophole, but it’s not really. If you’re creating the ad, you know what’s in it. If you’re working with an agency or vendor, you need to ask. Claiming ignorance won’t fly if it’s obvious you should have known.
Are There Any Exceptions?
Yes, but they’re narrow.
The law doesn’t apply to:
- Promotional materials for expressive works like movies, TV shows, video games, or streaming content (as long as the synthetic performer is used the same way in the promo as in the actual work)
- Ads where AI is used solely for language translation
- Potentially some media outlets and platforms that just publish or distribute ads (though this exemption is vague and you shouldn’t assume you’re covered)
If you’re running standard commercial ads for products or services, you’re probably not exempt. Plan accordingly.
The Gray Area Nobody’s Talking About
Here’s where this gets tricky, and why I think we’re going to see a lot of confusion in the next few years.
As AI gets better, the line between “enhanced” and “synthetic” is going to blur.
Let’s say you take a photo of a real model and use AI to:
- Smooth their skin
- Adjust their lighting
- Change their hair color
- Alter their body proportions
- Swap out the background
At what point does that stop being a photo of a real person and become a synthetic performer?
What if you use AI to generate a person, but then base it heavily on stock photography of real people? What if you composite multiple real people together using AI?
The law doesn’t give us clear answers on these scenarios. And that’s going to be a problem as AI-generated content in advertising becomes more sophisticated.
My guess is we’re going to see a lot of lawsuits and regulatory guidance over the next couple of years trying to figure out where that line is. In the meantime, err on the side of disclosure. If you used AI in a significant way to create or alter a human likeness, disclose it. Better safe than fined.
Why New York’s AI Advertising Regulations Matter (Even If You’re Not in New York)
New York might be first, but they won’t be last with AI disclosure requirements.
Other states are already considering similar legislation. And once a few more states pass their own versions, we’ll end up with a patchwork of different rules that are nearly impossible to navigate.
That’s why it’s worth paying attention now, even if you’re not primarily advertising in New York. The direction is clear: regulators want transparency around AI-generated content in advertising. Get ahead of it.
Also, disclosure isn’t just about avoiding penalties. It’s about trust. Your audience deserves to know when they’re looking at something real versus something created by a machine. Being transparent about that builds credibility, not undermines it.
If you’re looking for ways to create authentic advertising campaigns that don’t rely on AI-generated performers, consider user-generated content (UGC) marketing. Real customers creating real content about your products naturally sidesteps these disclosure requirements while building genuine trust with your audience.
How to Comply With New York’s AI Disclosure Law
If you’re running ads that might fall under this law, here’s what you should do:
Audit your current campaigns. Go through your active ads and figure out which ones use AI-generated imagery or synthetic performers. Make a list.
Add disclosures where needed. Update those ads with clear, conspicuous language that discloses the use of AI. Don’t wait until June 2026. Do it now.
Update your creative process. Make disclosure part of your standard workflow. If AI is involved in creating human likenesses, disclosure gets added automatically.
Talk to your agency or vendors. If you’re working with external partners, make sure they understand this requirement and are building it into their work. Get it in writing that they’ll comply.
Document everything. Keep records of when and how you disclosed AI use. If you ever get questioned, you want to be able to show you took this seriously.
When in doubt, disclose. If you’re not sure whether something counts as a synthetic performer, disclose it anyway. The cost of a disclosure is zero. The cost of a violation is $1,000 minimum.
The Bigger Picture
This law is part of a larger conversation happening right now about AI, transparency, and trust.
As AI becomes more integrated into advertising, marketing, and content creation, people want to know what’s real and what’s not. That’s fair. And frankly, it’s good for the industry.
The brands that embrace transparency and use AI responsibly are going to come out ahead. The ones that try to hide it or game the system are going to get burned, either by regulators or by their own audience losing trust.
At Social Impressions, we’ve been navigating these questions with our clients for the past year. We use AI as a tool to make our work better and faster, but we’re always transparent about it. And we make sure our clients understand when and how disclosure is needed.
If you’re running ads and you’re not sure whether this law applies to you, or if you need help figuring out how to comply without killing your creative process, reach out. This stuff is complicated, and it’s changing fast. You don’t have to figure it out alone.
Because at the end of the day, the goal isn’t just to avoid penalties. It’s to build campaigns that people trust. And trust starts with being honest about what you’re putting in front of them.
Source: What Digital Marketers Need to Know About New York’s New AI Disclosure Law – The National Law Review