New York has taken a significant step in regulating the use of artificial intelligence (AI) in advertising as it enters 2026. On December 11, 2025, Governor Kathy Hochul signed Senate Bill S8420A into law, amending the General Business Law to establish a compliance framework for advertisers utilizing generative AI. This move aims to ensure transparency when AI-generated digital content is used in commercial advertisements, a development that could reshape marketing practices across the state.
The newly enacted law requires advertisers to disclose the use of “synthetic performers” in their advertisements. A “synthetic performer” is defined as any digital asset created or modified by AI that simulates a human performance but is not recognizable as an actual person. The regulation places the onus of compliance directly on creators of commercial content rather than the platforms that host these ads. As such, those involved in producing advertisements must clearly indicate when a synthetic performer is present, provided they are aware of its inclusion.
The law specifies that disclosures must be conspicuous, ensuring that consumers are informed when AI-generated assets are part of the advertisement. However, the statute offers a safe harbor for publishers and broadcasters who merely disseminate the advertisements, meaning they will not be held liable as long as they did not create the content themselves. This legislative framework highlights the increasing scrutiny surrounding the use of AI in marketing, particularly as these technologies become more sophisticated and prevalent.
Senate Bill S8420A outlines definitions critical to understanding the regulation. “Artificial Intelligence” is characterized as a machine-based system capable of making decisions that influence environments based on human-defined objectives. It encompasses large language models and computer vision technologies. “Generative Artificial Intelligence,” on the other hand, refers to models that create synthetic content by emulating the structure and characteristics of input data, which includes images, videos, audio, text, and more.
There are noteworthy exemptions to the disclosure requirement. Audio-only advertisements, such as radio spots and podcasts, are not subject to the law because they do not fall under the definition of a synthetic performer, which relates specifically to visual or audiovisual content. Furthermore, advertisements that utilize AI solely for language translation of a human performer are also exempt, allowing for flexibility in multilingual marketing efforts.
The entertainment industry is particularly affected, as the law includes a provision exempting expressive works. Advertisements for motion pictures, television programs, streaming content, video games, and documentaries do not require disclosure if the use of synthetic performers aligns with their roles in the underlying creative work. This exemption aims to prevent potential conflicts with creative professionals and their representations in media.
Enforcement of the new regulations will involve civil penalties, with a first violation resulting in a $1,000 fine and subsequent violations incurring $5,000 penalties. The law does not create a private right of action for consumers, though violations may serve as a basis for claims under the General Business Law’s deceptive trade practice provisions.
With the law set to take effect 180 days post-signing, compliance becomes a pressing concern for advertisers targeting New York consumers. The deadline for adherence to these new regulations is June 9, 2026. Advertisers are encouraged to audit their creative assets to differentiate between human talent and synthetic performers to ensure compliance.
As the use of AI in advertising continues to evolve, New York’s regulatory approach may set a precedent for other states considering similar measures. The implications for marketing strategies, consumer engagement, and the broader advertising landscape will likely be profound as businesses adapt to these new requirements.
For more information on artificial intelligence regulations, you can visit the New York Times or the official New York State website.
As we head into 2026, the dialogue surrounding AI’s role in society—particularly in advertising—will undoubtedly intensify, prompting ongoing discussions about ethics, transparency, and consumer rights in the digital age.
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