New York’s New AI Advertising Law: What Brands and Marketers Need to Know

Artificial intelligence is becoming part of everyday marketing. Brands are using it to generate imagery, edit videos, develop concepts, translate content and produce advertisements faster than ever.

But as AI-generated content becomes more realistic, lawmakers are beginning to establish rules around transparency.

New York has now enacted a first-of-its-kind law requiring advertisers to disclose when certain advertisements include an AI-generated human model or actor, or "performer".

The law does not prohibit businesses from using AI in advertising. It does, however, require brands to be more transparent about how AI is being used.

For businesses, agencies and content creators, this is another sign that AI cannot be treated as an unregulated shortcut. It needs to be incorporated into a thoughtful, responsible marketing process.

What Does the New York Law Require?

Effective June 9, 2026, visual and audiovisual advertisements that include an AI-generated “synthetic performer” must contain a conspicuous disclosure.

A synthetic performer is essentially a computer-generated human figure that appears to be a real person but does not represent an identifiable, naturally occurring model or actor.

Think of examples such as:

• An AI-generated spokesperson promoting a product

• A fabricated lifestyle model appearing in an advertisement

• A realistic virtual customer delivering a testimonial

• An AI-created person demonstrating or using a product

• A digital human appearing in a social media or video advertisement

When a business knowingly uses this type of model or actor in an advertisement, the advertisement must make that fact clear to the viewer.

The law establishes a civil penalty of $1,000 for a first violation and $5,000 for subsequent violations.

This Is Not a Ban on AI Advertising

Some of the headlines surrounding the law make it sound as though New York has outlawed AI-generated advertising altogether.

That is not the case.

Brands may still use AI tools in their marketing. The disclosure requirement is specifically focused on synthetic human performers used in commercial advertising.

For example, the law does not appear to require a disclosure simply because AI was used to:

• Brainstorm a campaign concept

• Assist with copy development

• Enhance or retouch an existing photograph

• Create a background without a human figure

• Analyze advertising performance

• Translate the language of a real model or actor.

• Develop an illustration that is not presented as a real person

The key issue is whether an advertisement presents an artificial human figure in a way that viewers might reasonably interpret as a real model or actor.

Does the Law Affect Businesses Outside New York?

Potentially, yes.

Businesses should not assume the law is irrelevant simply because their headquarters, marketing agency or production team is located outside New York.

Digital advertising does not stop at state borders. A campaign developed in Massachusetts, Connecticut or another state may still be delivered to consumers in New York through social media, search, streaming video, e-commerce platforms and programmatic advertising.

Brands running regional or national campaigns should therefore review whether their advertising reaches New York audiences.

This is particularly important for:

• E-commerce brands

• Retailers serving customers in New York

• Multi-state businesses

• Marketing agencies managing regional campaigns

• Companies using AI-generated models in product listings

• Brands running paid social or video advertising

What Does “Conspicuous Disclosure” Mean?

The law requires the presence of a synthetic model or actor to be disclosed conspicuously.

In practical terms, hiding the disclosure in fine print, a long caption or an inaccessible website policy may not be enough. Consumers should be able to notice and understand the disclosure when they view the advertisement.

Because specific placement and formatting requirements may continue to develop, businesses should consult qualified legal counsel when determining the appropriate language, size, duration and location of a disclosure.

From a marketing perspective, brands should build disclosure into the creative itself...not add it as an afterthought after a campaign has already launched.

What Brands Should Do Now

1. Review Existing Advertising

Audit your active social media ads, videos, display advertising, product listings and e-commerce imagery.

Identify any creative containing people who were generated entirely through AI.

2. Ask Vendors How Creative Was Produced

Brands may not always realize that an outside designer, production company, freelancer or technology platform used AI-generated performers.

Ask vendors to identify when deliverables contain synthetic people and document how AI was used.

3. Establish an AI Content Policy

Create internal guidelines covering:

• When AI may be used

• Which tools are approved

• Who must approve AI-generated creative

• When disclosures are required

• How the use of AI will be documented

• When legal review is necessary

4. Add AI Review to the Approval Process

Your creative approval checklist should include a simple question:

Does this advertisement contain an AI-generated person?

If the answer is yes, the team should determine whether a disclosure is required before publishing the advertisement.

5. Review Agreements With Agencies and Creators

Contracts should clearly establish who is responsible for identifying AI-generated content, recommending disclosures and securing approval before advertising is distributed.

Transparency Is Becoming Part of Brand Strategy

The larger issue is not simply avoiding a fine.

It is protecting consumer trust.

People want to understand whether the person recommending a product, demonstrating a service or sharing an experience is real. When a brand allows an artificial spokesperson to be mistaken for a real customer, model or actor, it risks making the entire message feel less credible.

A disclosure may satisfy a legal requirement, but it does not automatically make the creative strategically effective.

Brands still need to ask:

• Does using an AI performer improve the message?

• Will the disclosure distract from the campaign?

• Could a real employee, customer, creator or actor make the content more believable?

• Is the cost savings worth the possible loss of authenticity?

• Does the creative accurately reflect the brand?

The ability to generate something does not necessarily mean a brand should use it.

Our Perspective: AI Should Be a Tool, Not the Bible.

At DOMORRE, we believe agencies and businesses should adapt to AI, not ignore it and not rely on it to replace every part of the creative process.

AI can make marketing teams faster. It can support research, organization, ideation, analysis and production. But it cannot replace the trust built through real relationships, real experiences and authentic human creativity.

The best approach is a hybrid one:

Use AI where it improves the process. Use people where humanity matters.

As regulations continue to evolve, businesses will need partners who understand both the opportunities and the responsibilities associated with emerging technology.

New York’s synthetic performer law is unlikely to be the last regulation of its kind. Brands that establish responsible standards now will be better prepared for whatever comes next.

This article is provided for general informational purposes and is not legal advice. Businesses should consult qualified legal counsel regarding their specific advertising practices and compliance obligations.