The state of New York is taking a significant step in regulating the use of artificial intelligence in advertising. On December 11, 2025, Governor Kathy Hochul signed into law S.8420-A/A.8887-B, a pioneering measure that mandates transparency in digital advertising involving AI-generated content. This legislation establishes clear compliance obligations for advertisers, who are now required to disclose the use of what the law defines as “synthetic performers.”
A “synthetic performer” is described in the statute as a digitally created asset generated or modified by artificial intelligence that produces the impression of a human performer who cannot be identified as an actual person. This change comes amid the rising prevalence of AI in marketing strategies, raising both ethical and legal concerns about authenticity in advertising.
Under the new law, any business that produces advertisements in New York must provide a “conspicuous disclosure” if a synthetic performer is used, provided the advertiser is aware of its inclusion. The statute does not specify the wording for this disclosure, but it must be prominent and easily noticeable, rather than buried in fine print. This requirement applies across various media platforms where such advertisements may appear, reinforcing the need for transparency in marketing practices.
Digital marketers, brands, and advertising agencies utilizing AI-generated content are urged to consult with compliance attorneys specializing in Federal Trade Commission (FTC) regulations. These professionals can help navigate the complexities surrounding the new law, addressing issues such as liability exposure and the implementation of internal auditing processes for AI-generated likenesses prior to distribution in New York.
Violating these disclosure requirements can lead to significant financial repercussions. The law stipulates a civil penalty of $1,000 for the first violation and escalates to $5,000 for subsequent violations. As a result, advertisers that fail to comply could face mounting statutory penalties and litigation costs, underscoring the importance of adherence to the new regulations.
There are, however, exclusions within the law. Advertisements and promotional materials related to expressive works, such as films, television shows, streaming content, and video games, are exempt, provided the use of synthetic performers aligns with the portrayal in the expressive work. Additionally, the law does not apply to instances where AI is solely used for language translation or to certain media platforms that publish or distribute advertisements.
Notably, alongside this legislation, New York has also expanded its posthumous right of publicity law. The new statute requires prior consent from the heirs of deceased individuals for the commercial use of their likenesses, names, or voices. This aspect of the law extends protections to those who died while domiciled in New York and whose likenesses held commercial value at the time of their death, presenting another layer of compliance for advertisers.
The amended laws reflect a growing recognition of the challenges posed by AI in marketing, as the use of technology continues to reshape the advertising landscape. Beginning in June 2026, advertisers operating in New York will be required to make clear disclosures when employing AI-generated synthetic performers, which may lead to broader implications for marketing strategies nationwide. As various states consider similar legislation, these developments signal a pivotal shift in how AI’s role in advertising is regulated.
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